Page 20 - 2020 Buyer Package - Pallavi
P. 20
COSTS OF BUYING A HOME
EXPENSES DUE ON OFFER ACCEPTANCE
DEPOSIT: 5% of the purchase price, becomes part of the purchase price and downpayment.
APPRAISAL: $250-$400, typically required for comvemtional mortgages by the bank.
HOME INSPECTION: $300-$900+, costs vary according to type (ex. condo, cottage, waterfront)
size and age of the property.
EXPENSES DUE ON CLOSING
LEGAL FEES: $1000-$2000+, these include lawyer fees and disbusments.
CLOSING ADJUSTMENTS: $500+, these items vary for each tarnsaction. Examples include but
are not limited to municipal property taxes, utilities and condo maintenance fees.
CMHC INSURANCE: 2.4%-4% of the purchase price and depending on the amount of the
downpayment. 13% tax must be paid on closing, while the full amount is added to mortgage.
LAND TRANSFER TAX ONTARIO: 0.5% on value up to $55,000
1% on value between $55,001-$250,000
1.5% on value between $250,001-$400,000
2% on value above $400,001
If you are a rst time buyer, you are entitled to a rebate on the land transfer tax up to $4,000.
LAND TRANSFER TAX TORONTO: Applicable to properties located within the City of Toronto.
If you are a rst time buyer, you are entitled to a rebate on the land transfer tax up to $4,475.
