679 St. Clair Street, Chatham, ON, N7L 0E9      Cell: 519-365-3028 | Office: 519-352-2840     soldbyanne@outlook.com      
Anne MArie Authier

Closing Costs

As a buyer you will want to budget for the closing costs typically associated with purchasing a home.

Down Payment

A down payment is the part of the home price that does not come from the mortgage loan. The down payment comes from your own money

Deposit

The deposit is paid when you make an Offer to Purchase to show that you are a serious buyer. The deposit will form part of your down payment with the remainder owing at time of closing.

Appraisal Fee

Your mortgage lender may ask you to pay for a recognized appraisal in order to complete a mortgage loan. An appraisal is an estimate of the value of the home. The cost is usually between $250 and $350.

Mortgage Loan Insurance Premium

If you make less than a 20% down payment, you have a high-ratio mortgage. With a high-ratio mortgage your lender will need mortgage loan insurance. Mortgage loan insurance lets you buy a home with a minimum down payment of 5%. See the Calculator section to estimate premium. The premium is generally added to the mortgage however you are required to pay the HST on the premium up front on the day of closing.

Home Inspection Fee

A qualified home inspector will generally costs between $250 and $400.

Title Insurance

Your lender, lawyer, or notary may suggest that you get title insurance. This will cover loss caused by defects of title to the property. Typically between $300 and $400.

Land Transfer Tax

Required by everyone except first time home buyers who are exempted to a certain dollar value. Use the Land Transfer Calculator to estimate this tax.

Estoppel Certificate Fee

This applies if you are buying a condominium, or strata unit, and could cost up to $100. Also called a Status Certificate it outlines a condominium corporation’s financial and legal state.

Adjustments, Prepaid Property Taxes and/or Utility Bills

Property taxes are charged by the municipality where the home is located. They are based on the value of the home. The seller may have already paid property tax or other expenses that apply to the time after the house passes into your hands. You need to pay back the seller for taxes and other costs (including items like filling the oil tank).

Property Insurance

The mortgage lender requires you to have property insurance because your home is security for the mortgage. Property insurance covers the cost of replacing your home and its contents in case of loss. Property insurance must be in place on closing day.

Legal Fees

Legal fees and related costs must be paid on closing day. The minimum cost is $500 (plus GST/HST). In addition, your lawyer or notary will charge you direct costs to check on the legal status of the property.

Other Costs

Be sure to budget for movers, renovations or repairs, service connection fees, appliances, and cleaning supplies.

Anne Marie Authier
Cell: 519-365-3028
soldbyanne@outlook.com

RE/MAX Chatham-Kent Realty Inc., Brokerage
(Independently Owned and Operated)
679 St. Clair Street
Chatham, Ontario, N7L 0E9
Tel: 519-352-2840
Fax: 519-352-2489

http://www.remaxchatham.ca
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