First-time buyers often budget for their down payment but forget to plan for closing costs. These additional expenses are due on or before closing day and can surprise new homeowners.
Common closing costs include land transfer tax, legal fees, title insurance, and home inspection fees. Depending on your price range, they typically total between two and four percent of the purchase price.
Buyers in Toronto should note there are two land transfer taxes — municipal and provincial — while other GTA regions have only the provincial one.
Other potential costs include adjustments for prepaid property taxes, appraisal fees, and CMHC insurance if your down payment is under twenty percent.
Budgeting for these expenses upfront helps you avoid last-minute stress and ensures your transaction goes smoothly.
Unsure what your closing costs will look like?
I can provide a detailed estimate tailored to your price point and target neighbourhood.