The following is a list of expenses normally incurred by a Buyer when completing the purchase of a Residential property within Toronto.
Closing costs are a list of charges your lawyer presents to you on the closing date of your home. Many people are surprised at the additional costs over and above the price of the home. According to the CMHC and Genworth Financial you should have at least 1.5% of the purchase price for closing costs in addition to the down payment (have around 2.5% to be on the safe side). The costs vary among provinces and cities. Below you will find a brief explanation of these costs. Please note these are some of the closing costs you may encounter depending on your specific situation. Use this as a guideline then talk with your lawyer who can provide a more realistic estimate for your situation. |
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1. Legal Fees
The tariff rate for residential properties is between .25% and .5% of the purchase price, normally not to exceed $1,450.00. Lawyers may negotiate their fees and will provide individual quotes when requested.
2. Land Transfer Tax - Provincial & Municipal
Provincial Land Transfer Tax:
Purchase Price Land Transfer Tax
$ 55,000 - $250,000 (Purchase price x 1%) minus $275.00
$250,000 - $400,000 (Purchase Price x 1.5%) minus $1,525,00
$400,000 - up (Purchase Price x 2%) minus $3,525.00
calculate your PLTT here (make sure to go to "Ontario" on the drop menu)
Municipal Land Transfer Tax (City of Toronto only):
Purchase Price Land Transfer Tax
$ 000 - $55,000 (Purchase price x 0.5%)
$56,000 - $400,000 (Purchase Price x 1%)
$401,000 - up (Purchase Price x 2%)
calculate your MLTT here (make sure to go to "Ontario (Toronto)" on the drop menu)
3. Survey (this does not apply to Condominiums)
A new survey may be necessary if the Seller does not have an "acceptable" survey and one is required by the first Mortgagee. Cost: $750.000 - $1100.00
4. Disbursements - (A typical list of disbursements is as follows):
Law Society Transaction Levy $ 50.00
Tax Certificates $ 65.00
Building Clearance $105.00
Sheriff's Certificates $50.00 to $100.00 (avg.)
Deed Registration $ 70.50
Mortgage Registration $ 70.50
Registry Office Searches $ 80.00
Water Status Reports & Consumers Gas $ 41.05
Copies, Postage, Fax etc. $ 25.00
5. Status Certificate (Condominiums only)
Negotiable cost between Seller or Buyer of aproximately $100.00
6. Title Insurance (Purchase and Mortgage)
$250 - $300 (if new home under $500,000)
$400 (if resale under $500,000)
7. Adjustments
On a pro rata basis the lawyer will apportion the following expenses, as of the date of completion:
Taxes; Oil (usually topped-up by Seller and Buyer receives a full tank); Water (only flat rate accounts in Toronto); Common expense fees
NOTES:
Building clearances City of Toronto will not comment on surveys. They give only zoning and work order information, front yard parking, committee of adjustment files, etc.
Toronto Hydro They give neither written nor verbal information. It is entirely up to the Seller and Buyer to call them.
All disbursements with the exception of registration costs are subject to applicable G.S.T. on Closing
