What’s Included on the Closing Costs?
To first time buyers, closing costs are always sort of a mystery: They have a slight idea of what it is, but don’t know what’s specifically involved or how much it will cost. Many people think it is just the notary fee and that’s all.
Sorry folks, that’s not just it.
In addition to the mortgage down-payment, you (the buyer) will need to put aside some money for the costs related a home purchase. What are these closing costs?
Here is a short list of the basic expenses you can anticipate:
- Professional Home Inspection: Only if it’s part of your offer.
- Legal fees (Notary): Costs involved in conducting a title search, drafting the title deed and preparing the mortgage, registration fees, etc.
- Property Taxes and Utilities (prepaid): Sometimes the seller may have prepaid some bills before the closing date, which you will have to reimburse.
- Land transfer tax - also known as welcome tax. This cost you don’t have to pay at the closing day, usually the city will send you a bill about a month (or so) after the signing date.
- GST & Provincial Tax – Only if you’re buying a newly constructed home.
- Home Insurance. The bank will ask you to insure your home – because they really care about your well being.
- Miscellaneous: Little repairs you might want to make to the property, etc.
There is one more: Moving costs. I don’t often include it on the list because it maybe a helping friend or a relative will help you move for free, in which case you’re very lucky- and a couple of hundred dollars richer :)
Before you ask for prices…
I made sure not to place any values to the services mentioned above just because (exact) prices change often, and revising articles to change prices are not really my thing.
Your agent should give you a break down of the fees.
Don’t have an agent? We’ll be happy to help.
Posted By: Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying, selling or renting contact Deya at: 514.917.7889
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