Deposit Funds: Deposits become payable by the Buyer within 24 hours from the time of acceptance of their offer to purchase a property. These funds, usually about 5% of the value of the property, must be available at that time.
Legal Fees: These vary widely, get a personalized quote from a lawyer.
Home Inspection Fee: Home inspectors provide a physical condition check and structural assessment of the property confirming things that are in working order and identifying those items that may be in need of repair. Budget around $500.
Condominium Status Certificate: If purchasing a resale condominium an up-to-date status certificate is required. If the Seller has not already made one available the fee for providing a new status certificate often falls upon the Buyer. Cost: $100.
New Condominium Fees: Builders charge back to Buyers any municipal levies and development expenses that they incur and must pay when building the property. Lawyers can provide an estimate of these fees for each specific new freehold or condominium purchase.
Property Appraisal Fees : Mortgage lenders usually require an accredited property evaluation to confirm the market value of the property.
Sometimes paid for by the lender. $250 – $300
Survey: Lenders may require an up-to-date property survey (ranging from $1500 to $2500) but often title insurance is acceptable in lieu of a new survey. Property surveys are a requirement however for any intended renovation permit applications that require extensions to the property, pools, etc. Sellers may have an acceptable survey already in-hand.
Title Insurance: Title insurance policies protect the lender (and the Buyer) against a number of defects, including: existing zoning violations, encroachments, title frauds and defects, work orders, etc. Often title insurance will eliminate the need for an up-to-date survey of the property. $400 – $500
Closing Adjustments: These disbursements get paid by the Buyer to the lawyer. Adjustments include any Seller-prepaid taxes, utility bills, condominium fees and other charges that have already been paid for, calculated at completion and then to be reimbursed to the Seller. The lawyer can provide a closing adjustments approximation for each specific purchase.
Land Transfer Tax (Ontario Provincial Tax and Toronto Municipal Tax)
Ontario Land Transfer Tax :
0.5 % – on the first $55,000
1.0 % – on amounts between $55,000 and $250,000
1.5 % – on amounts over $250,000
2.0 % – on amounts above $400,000
2.5 % – on amounts above $2,000,000
In addition to the Ontario Land Transfer Tax for single family residences located within the City of Toronto there is now a Municipal Land Transfer Tax applied, payable as per the following rates:
0.5 % – on the first $55,000
1.0 % – on amounts between $55,000 and $250,000
1.5 % – on amounts above $250,000
2.0 % – on amounts above $400,000
2.5 % – on amounts above $2,000,000
3.5 % – on amounts above $3,000,000
5.5 % – on amounts above $5,000,000
6.5 % – on amounts above $10,000,000
7.5 % – on amounts above $20,000,000
Please note that the above calculations are for illustrative purposes only. Please verify the details of payable Land Transfer Taxes for your specific purchase with your lawyer who will be responsible for final calculations and the collection and remitting Land Transfer Taxes to the Provincial and City of Toronto on your behalf.
