If you’re planning to purchase a home, understanding closing costs is crucial for budgeting and avoiding surprises. These additional expenses go beyond your down payment and mortgage, ranging from 1.5% – 4% of the purchase price. Let’s break down what closing costs are and what to expect.
🔑 What Are Closing Costs?
Closing costs are the fees and charges incurred during the final steps of a real estate transaction. These costs ensure everything from legal processes to ownership transfers is completed smoothly. Although often overlooked, they are an essential part of the home-buying process.
📋 Key Closing Costs to Prepare For
1. Land Transfer Tax
When you buy property in Ontario, you’ll need to pay a land transfer tax. In Toronto, there’s an additional municipal land transfer tax.
2. Legal Fees
A real estate lawyer will handle the legal paperwork, including title transfers, and ensure the transaction is legally sound.
3. Home Inspection Fees
A home inspection evaluates the property’s condition, giving you peace of mind before making a significant investment.
4. Appraisal Fees
Your lender may require an appraisal to confirm the value of the property aligns with the mortgage amount.
5. Title Insurance
This protects you against potential issues with the property title, such as disputes or fraud, ensuring your ownership is secure.
6. Mortgage Default Insurance
If your down payment is less than 20%, you’ll need mortgage default insurance. This premium is added to your mortgage, and as the homeowner, you will be responsible for covering it.
7. Home Insurance
Home insurance is often required by lenders before the mortgage can be finalized. This policy protects your investment against risks like fire, or damage.
8. Other Costs.
There are other cost that you might need to consider like Moving Cost and the prepaid utility bills by seller etc.
💬 Have Questions? Let’s Talk!
Navigating closing costs can be overwhelming, but you don’t have to do it alone. At Dominion Lending Centres, we’re here to simplify the process and ensure you understand every step. Whether you’re a first-time buyer or looking to refinance, we’ve got you covered.
📞 Contact Us Today!
📱 416-879-2985
📧 sara@sarasecuremortgages.com
🌐 [www.sarasecuremortgages.com](https://www.sarasecuremortgages.com)
Let’s make your home-buying journey as seamless as possible!