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Closing Costs - Purchase

The following is a description of the usual closing day costs associated with the purchase of your property.  These will vary depending on the municipality, the financing to be placed on the property and whether the property is heated by fuel or electricity.


1.         Deed Transfer Tax - (Called by some the “Welcome” tax) - Each Municipality has its own transfer tax.  You should check with your solicitor for the percentage applicable to your purchase area.


2.         Location Certificate - This cost will vary as well but it is prudent to budget five to six hundred dollars.


3.         Recording of Documents - Approximately

$83.51 for Deed

$83.51 for Mortgage


4.         Title Search - Approximately $35.00 for electronic title searching of  the records at the Registry of Deeds.


5.         Legal Fees - Consult your real estate lawyer to obtain the costs for your particular transaction, including assisting you in completing your cost estimate worksheet.


6.         Legal Disbursements (out-of-pocket expenses) - Including postage, photocopies, courier service long distance calls and fax - approximately - $85.00.


7.         HST must be charged on Legal Fees and Disbursements at the rate of 13%.  Agency type fees (i.e. Registry of Deeds costs) are exempt.


8.         Fuel Oil Adjustment - based on a standard tank (200 gallons/909 litres) - approximately $700.00 (inclusive of HST).


9.         Interest Adjustment - Interest may be deducted from the mortgage cheque to cover the period from the closing date to your first payment date.


10.       Tax Adjustment - The Purchasers must pay their proportionate share of taxes from date of closing to next billing date.  Taxes are billed in six month intervals in advance and are due in April and September/October  of each year.  The Purchasers are responsible for any taxes that the Vendor has prepaid for the period of time that the Purchasers will own the property.


11.       Tax Advance by Mortgage Company - If the next tax billing will arrive before enough funds are collected in your tax account at the mortgage company, monies to be set aside for taxes may be deducted from the mortgage cheque.


12.       Mortgage Assumption Fee - If a Purchaser is assuming a mortgage, the mortgage company may charge an assumption fee, which the purchaser must pay as an addition to the closing costs.