How Much Will It Really Cost?

You will need to factor in some up-front costs of buying a home into a home.

• CMHC Fees or Mortgage Loan Insurance.  How much does mortgage insurance cost?  The Mortgage Loan Insurance will typically be passed onto you by your lender.   Your lender will inform you of the exact cost when you apply for a mortgage.  The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan an is based on the amount of your down payment. The higher percentage of down payment you have the lower your insurance premium will be.  View the CMHC Loan Insurance Chart here.

• Appraisal Fee.  If your mortgage lender requires that an appraisal be completed on the home you are purchasing this will be at your expense.  The appraisal fee will be due at the time the appraisal is completed.  Typically an appraisal will cost between $250-$350.

• Deposit.  This will be due immediately after you come to an agreement with the sellers on the terms of a contract.  The deposit is held in trust by the listing brokerage and then applied to the purchase price at the time of closing.  

• Down Payment.  The amount of the down payment required in a purchase varies depending on what your mortgage lender requires.  Speak to your mortgage lender for more details on the options available to you.

• Status Certificate.  If you are purchasing a condo you will need to have a Status Certificate ordered.  (approx. $100)

• Home Inspection Fee.  This is almost always a conditions in your agreement of purchase and sale and will cost approximately $400 depending on the inspector that you hire.  This fee is due at the time of inspection.

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• Land Transfer Tax.  If you are a first time buyer in Ontario you may be eligible for a partial or complete refund on the land transfer tax paid.  To learn more about the Land Transfer Tax Rebate click here.

The Current tax rate is as follows:

• 0.5% of the value of the consideration up to and including $55,000,
• 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
• 1.5% of the value of the consideration which exceeds $250,000, and
• 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

• Pre-Paid Property Taxes and/or Utility Bills.  These adjustments will be made on closing with your lawyer.  

• Property Insurance.  You will be required to have property insurance in place prior to closing.

• Survey.  If your mortgage lender requests an up to date survey prior to finalizing the mortgage loan you will be responsible for the cost.  The cost of a survey can be in the $1,000 - $2,000 range.

• Water Quality Inspection or Well Flow Test.  If the property is on a well you will want to check to see if the water supply is adequate and that the water is potable.  

• Legal Fees and Disbursements.  These fees must be paid on closing and will be billed to you directly by your lawyer.  

• Title Insurance.  Your lender will likely suggest title insurance to cover any loss caused by defects in the title of the property.