The purchase price of a home or condo in Toronto is only one of the fees you'll encounter. There are additional costs to consider when buying a home or condo in Toronto. Here are other possible costs you should be aware of:

Deposit: When you enter into an agreement to buy a house in Toronto, a deposit needs to be submitted when you have a formal offer to purchase completed. This deposit usually needs to be provided within 24 hours of acceptance of the agreed upon offer to purchase. 

Appraisal fee: After you have purchased the property. The mortgage lender typically will need to perform an appraisal of the property as the loan is based off  a percentage of the home's purchase price or the market appraisal of the property. The Cost depends on the size and complexity of the appraisal but usually it would range between $300 - $500 dollars for a simple residential appraisal. It is important to ensure the mortgage appraisal firm is familiar with the area that the property is in so that a proper appraisal is completed. Many times the lender will assign the appraiser from there prefered list of appraisers. This can be discussed further with your mortgage broker or banker. 

Home inspection fee: A Home Inspection is recommended if you are a first time buyer or not very experienced in home maintenance and construction. It could protect you by revealing deficiences that the home may have before finalizing the purchase of the property. It could also be helpful in providing maintenance tips while owning the property. The cost of the inspection ranges depending on the time but the average cost of an inspection is between $400 - $600 hundred dollars.  

Home Insurance: If you are placing a mortgage on the property the lender will require proof of property insurance for the replacement value of the house and its contents from the day you take ownership. On condos the building is insured so with a condo purchase it is not always required. You can contact your insurance broker in order to get an estimate of what this insurance may cost you and it depends on your past experience with home insurance. 

Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance. In Canada the mortgage loan insurance is usually provided by the Canada Mortgage and Housing Corporation or or Genworth Financial. Depending on the lender, the mortgage premium is usually added to the monthly mortgage payments. 

Status Certificate fee: If you are purchasing a condo. It is recommended you obtain a status certificate from the condo corporation and have a lawyer review it for you. The status certificate is a detailed report with highlights the financial statements and liabilities of the condo corporation. The cost in Ontario is $100 plus taxes.  

Title insurance: Your lawyer will always recommend you get Title insurance. Title insurance provides coverage in case of problems with the property title among other things. The cost is relatively low, usually a between $300 -$500 dollars and covers you during your ownership of the property. Most residential transactions these days require title insurance. 

Legal fees: You will have to pay a lawyer to handle the closing of the transaction. The fees will include costs for disbursements which are the costs involved in drawing up the title deed, conducting a title search, and preparing and registering the mortgage. The average cost of the legal fee including disbursements is between $900 - $1300 dollars for a standard residential purchase including disbursements. 

Land Transfer Tax: If you are purchasing a property in Ontario then you will have to pay an Ontario Land transfer tax. First time home buyers who purchase a home in Ontario receive a refund on a certain amount of the land transfer tax. If the purchase price is less than $368,000 first time buyers will not have to pay any Ontario land transfer tax. If the purchase price of the home is greater than $368,000 first time buyers would receive a maximum refund of $4,000 on closing on any amount taxed over the $368,000 dollar mark. For more information on the Ontario Land Transfer or to calculate the land transfer tax you will have to pay click here. If you are purchasing a home in Toronto then a Toronto Land Transfer Tax applies. The Toronto Land Tranfer Tax is a formula which depends on the purchsase price of the home. For more information on the Toronto Land Transfer Tax or to calculate what it would cost you click here.

Harmonized Sales Tax: Resale (used) homes are exempt from HST but it does apply to newly constructed homes and may qualify for a partial rebate depending on the sales price and if the home is going to be your primary place of residence. For new homes costing $350,000 or less, you will receive a HST rebate of 36% of the HST paid to a maximum of $8,750. The rebate for new homes costing between $350,000 and $450,000 declines to zero on a proportional basis. HST also applies to most of the services provided in completing the real estate transaction.

Other costs: These include moving costs, fees charged by utilities for service hook-ups, property tax and other adjustments (an adjustment takes place when the seller has already paid for something in advance and wants to be credited for the unused portion on the date the house becomes yours), and ongoing maintenance (condo fees etc) and utility costs.

Questions on costs involved in purchasing? Contact us to discuss


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