Costs of Home Buyers

1. Appraisal Fee

The approximate cost of this fee ranges between $300 and $700 depending on the mortgage lender's rates. Most mortgage lenders require an appraisal of the home before granting the loan. 

2. Home Inspection Fee 

This fee costs from $300 to $500, and although a home inspection is optional, it is highly desirable. Your offer to purchase will always contain a clause in the Schedule A of the Agreement of Purchase and Sale that states whether you arranged for an inspection or declined it. 

3. Condominium Status Certificate Fee

This certificate costs $100 plus HST. Your lawyer and the seller's lawyer will review the status certificate to ensure there are no liens, charges or claims 

against the condominium board. 

4. Legal Fees 

This fee will vary from lawyer to lawyer. Lawyers will charge a fee for their professional services, which include a search of the title deed, the preparation of the statement of adjustments and the verification of the Agreement of Purchase and Sale (and possibly others). 

5. Title Insurance Fee

The cost of this fee can range from $200 to $300 but can significantly increase depending on the type of insurance policy taken, the property type, and the value of the property. 

6. Property Insurance Fee

Depending on the type of coverage, this amount can vary. 

7. New Home Tarion Warranty

In Ontario, Tarion Warranty will be covered in the new home warranty program. The fee ranges approximately from $350 to $750 based on the sale price. 

8. Mortgage Application and Pre-Approval Letter Fee

This fee, costing approximately $150 to $250, covers the processing and filing of the application. 

9. Moving Costs

These will vary from one company to another. 

10. Land Transfer Tax

Ontario has a Land Transfer Tax (LTT), payable on closing, with the amount dependent on the cost of the home. varying in each province. Some cities, such as Toronto, also have a municipal LTT.

11. Closing Adjustment

Buyers must expect to pay closing adjustments for costs that the seller has prepaid, such as property taxes, utility bills, and other charges. Your lawyer will inform you of the exact amounts once the appropriate searches have been completed. 

12. Land Survey

A survey, a most recent one, is usually required by the mortgage lenders. If you do not have one, the survey is cost around $500-$900 to get one. In lieu of a land survey, most mortgage lenders will accept title insurance. 

 13. H.S.T

On a purchase of a new home, HST is charged; however the builder may include it in the purchase price. If the HST is not included, then it must be paid on closing. A lot of builders have included HST in the cost so the buyer does not have to come up with it on closing.