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Closing costs often get overlooked as much of the attention is on negotiating a fair purchase price. If you’ve been reading my guide I’ll assume you’re a prudent buyer and as such, you should set a side a few thousand dollars to deal with any closing costs. I’ll only mention a few here.

Land Transfer Tax – I’ve already mentioned earlier that first-time buyers are granted a refund up to $2000 for Provincial land transfer tax and $3725 for municipal land transfer tax. Depending on the price of your new home, you may need to pay the portion of taxes in excess of the refunded amount. Follow this link to revisit land transfer tax.

Lawyer Fees – Your lawyer will tell you the exact amount he/she will be charging. Setting aside $1500-$2000 should cover typical legal fees.

Closing Adjustments – adjustments are expenses that have already been paid for by the seller but the benefits of these expenses are enjoyed by you (the buyer) after the closing date. Naturally the seller is only responsible for the payments until you take possession of the home, and you will be required to pay back the seller for the remaining pre-paid months. Some common closing adjustments are property taxes, interest on assumed mortgages, water/utilities, and any rent if applicable.

Your agent should be able to provide you with more information. If you don’t have one yet, email me and I’ll be glad to help.