What are Closing Costs
When you purchase a home, the fees all add up at the lawyers office. This is what we call closing cost.
These fees can include:
- Lawyer's cost- like bank drafts and courier cost, fax and photocopy cost
- Lawyer's fees- the cost for their services
- Property taxes -some bank and lenders require that the city of Ottawa taxes are paid 6 months in advance (interim tax). Or to pay the seller of the home's property tax credit with the city. (Please refer to the property tax bill page for more info.
- Mortgage Insurance PST- if your purchase a home with 5 %, 10 %, 15% down payment, this might require Mortgage insurance. The insurance cost is rolled into the mortgage but the government of Ontario does charge PST and that cost will have to be paid at the lawyer's office.
- Land Transfer cost - when purchasing home, weather you have a mortgage or not. The government of Ontario charges a tax to transfer the mortgage title from one person to another.
To calculate the cost of your land transfer tax click here
This Land Transfer cost is usually collected by your lawyer to pay the Ontario government
If you are a first time home buyer there are special perks with land transfer tax. Since the government of Ontario are encouraging young and first time buyers, they are willing to discount that Land transfer tax up to 2,000 dollars required that you have never owned a home before in Canada or in any other country.