1. Down Payment
Amount: Typically between 5% to 20% of the home’s purchase price.
Details: This is the initial payment on the home, so it’s the biggest upfront cost.
2. Mortgage Default Insurance (if applicable)
Amount: Approximately 2.8% to 4% of the mortgage amount.
Details: If the down payment is less than 20%, clients will need mortgage default insurance, which protects lenders if they default on the loan.
3. Land Transfer Tax
Amount: Based on the home’s purchase price (e.g., on a $500,000 home, it’s about $6,475).
Details: Every homebuyer must pay this tax to the Ontario government, but first-time buyers may qualify for a rebate of up to $4,000.
4. Legal/Lawyer Fees
Amount: Typically $1,000 to $1,500.
Details: These fees cover the lawyer or notary for preparing and finalizing mortgage documents. This fee does not include extras like title registration, disbursements, software ect.
5. Title Insurance
Amount: Around $250 to $400.
Details: Protects the homeowner from potential issues with the property title, such as encroachment or title fraud.
6. Home Inspection and Appraisal Fees
Amount: Home inspection ($300 to $500), appraisal ($300 to $600).
Details: Home inspection is optional but wise, while an appraisal is often required by the lender to confirm the property’s value.
7. Property Insurance
Amount: Varies; usually part of the ongoing monthly expenses.
Details: Required by the lender to protect against loss or damage to the home.
8. Interest Adjustment Costs
Amount: Varies, depending on when the mortgage starts.
Details: Covers interest from the day the mortgage is advanced to the first regular mortgage payment date.
9. Utility Hook-Ups and Moving Costs
Amount: Varies, but often $200 to $500.
Details: Includes setting up utilities and moving in, a minor cost but something clients should keep in mind.
10. HST on New Homes (if applicable)
Amount: 13% of the purchase price (rebates available for primary residences).
Details: Only applies if buying a brand-new home. There are rebates for homes under a certain threshold if it’s a primary residence.
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