Closing Costs
There are numerous costs associated with closing on your property. Although you likely will not be dealing with all of them, you will be responsible for some of them. Here is a list of some of the costs that you may find yourself responsible for.
Inspection - Approximately $400.00
An inspection can help a buyer detect any issues with a property. It does not give any indication of property value. The building inspector will usually give you a list of necessary repairs and sometimes an approximate cost for each.
Legal Fees - Approximately $900.00
Lending institutions require you to have a lawyer or a notary public prepare and register the mortgage.
Property Transfer Tax
This is a land registration tax payable when you purchase a home. First time buyers may qualify for an exemption. The tax is 1% of the first $200,000 and 2 % of the balance.
Property Tax Adjustment
Property taxes are calculated for the calendar year January through December. Property taxes are due in July. If the property taxes have been paid prior to your purchase you will reimburse the current owner of the home for your portion of the taxes and if they have not been paid you will receive a credit from the current owner.
Strata Fee Adjustment
As with property taxes, there may be a required reimbursement or credit with the monthly strata fees.
Survey Certificate/Title Insurance - Approximately $300. and $175.
A survey certificate is often requested by the lender. The survey shows the exact legal boundaries of your property and the exact location of all the buildings, rights of way, and any other encroachments. You can request a copy from the seller, although the lender may not accept it if it is too old. In lieu of a survey the lender may accept title insurance. The insurance protects all parties, including you and your lender, in the event your home illegally encroaches on a neighbouring property.
Strata Title
You do not need a survey certificate or title insurance if you are purchasing a strata property as you will have a strata title. Two documents are required to complete a strata purchase, a Form B and Form F. Most strata companies will charge your lawyer a fee ranging from $50 to $100 to provide these forms. Your lawyer will also order a copy of your strata plan which costs approximately $15.
House Insurance
You will be required to provide confirmation you have home (fire) insurance arranged prior to completion. Your lawyer will arrange an insurance binder for you in the event you do not have your insurance set up prior to your appointment. If you are purchasing a condo your strata insurance will cover the fire insurance. You will only be responsible for content insurance.
Moving Expenses
Moving in expenses are charged by strata companies if you are purchasing a condo. Typically move in fees range from $50 to $100.
Utility Hook-ups
Your costs for utility hook-ups will vary depending on what utilities you will be needing.