In Ontario, closing costs when buying a house typically range between 3-5% of the purchase price. These costs include a variety of fees and taxes that need to be paid upon finalizing the home purchase. Below are some of the key closing costs in Ontario:

1. Land Transfer Tax (LTT)

• Cost: Varies based on property value.

• In Ontario, you must pay Land Transfer Tax when you purchase property. First-time homebuyers can receive a rebate of up to $4,000.

• LTT Calculation:

  • 0.5% on the first $55,000

  • 1.0% on the next $195,000

  • 1.5% on the next $150,000

  • 2.0% on the remaining amount above $400,000

If you're purchasing in Toronto, there's an additional Municipal Land Transfer Tax which follows the same structure as the provincial LTT.

2. Legal Fees

• Cost: Around $1,500 to $3,000.

• A real estate lawyer is required to handle the paperwork, including title searches and mortgage registration.

3. Title Insurance

• Cost: Typically between $250 and $500.

• This insurance protects you against title fraud or issues related to the ownership of the property.

4. Home Inspection Fee

• Cost: Around $300 to $600.

• While optional, a home inspection is recommended to identify potential issues with the property.

5. Property Tax Adjustment

• If the seller has pre-paid property taxes, you’ll need to reimburse them for the portion of the year that you’ll own the home.

6. Mortgage Default Insurance (if applicable)

• Cost: If your down payment is less than 20%, you’ll need to purchase mortgage default insurance (CMHC insurance). This cost can be rolled into your mortgage but is technically part of closing costs.

• The premium ranges from 2.8% to 4.0% of the mortgage amount.

7. Other Potential Costs

• Moving costs

• Utility setup costs

• Property appraisal fee (if required by the lender)

• Status certificate fee (if buying a condo, usually $100)

Overall, you should budget about 3-5% of the home's purchase price for closing costs.

4o

Great experience with Joe who was so accommodating and eager to respond to every question and concern. Friendly and readily available throughout the whole process of our purchase.

In real estate, a balanced market refers to a situation where the number of homes for sale is roughly equal to the number of buyers looking to purchase. In a balanced market, supply and demand are relatively stable, leading to moderate price growth and reasonable negotiation power for both buyers and sellers. It's often considered an equilibrium point where neither buyers nor sellers have a significant advantage.

In a buyers market …..

In a sellers market ….