When buying a new home, there are expenses outside of your mortgage that you will need to include in your budget. To help you, we have created this closing cost checklist that you can use to keep track of your expenses.
There are a number of property expenses that the seller may have prepaid and will need to be reimbursed for by the buyer. They include:
Up to $1000 (varies by prepaid expenses)
$
The lawyer (notary in Quebec) reviews Offer to Purchase, searches the title, draws up mortgage documents and looks after closing details.
Can vary between $1,300 and $2,500. If you move your mortgage to ING DIRECT, we will pay your legal/notary fees if the mortgage is assignable
Appraisal of property is only required for conventional mortgages to confirm market value before finalizing your mortgage.
Between $150 and $500. If insured by CMHC, Genworth or Canada Guaranty, there are no appraisal fees
Fee charged to the purchaser when a property changes ownership. This is generally the largest portion of closing costs on a resale home.
Can range from 0.5% to 2.0% of the value of the property (varies by province and municipality)
You will need to pay any interest accrued between your closing date and your first scheduled mortgage payment. This has to be paid on the Interest Adjustment Date.
Between $100 and $1,000 (varies by closing date and selected payment frequency)
ING DIRECT accepts Title Insurance, in lieu of a survey. Title Insurance can protect against fraud, forgery, title defects, and survey problems.
Approximately $165 - $225 for title insurance
Recommended before finalizing offer to purchase because it may reveal areas where repairs are required.
Between $150 and $500
Proof of insurance required by closing date and it must at least cover replacement value of home and contents.
Up to $800 annually
Required only if you are purchasing a condo. It outlines a condominium corporation's financial and legal state of affairs.
Up to $100
