WHAT ARE CLOSING COSTS?
Closing costs are additional expenses that are required when purchasing a home. On average, your closing cots will be about 1% to 3% of your purchase price of the home. The costs will vary from Province to Province and from City to City. Ask us which costs will be associated with your next mortgage transaction. below shows some of the most common closing costs.
Appraisal Fee – The purpose of an appraisal is to determine the value of the property. The Appraiser will help determine a fair value of the property based on similar homes in the local area that have sold recently. The appraisal allows the buyer know in advance if they are paying too much or are getting a great bargain on the property. The cost for appraisals can range from $150 to $350 for most homes in major centers, and additional cost for acreages due to travel times of the appraiser and the amount of time involved in reviewing comparable data.
Estoppel Certificate – The estoppel certificate outlines a condominium’s financial state of
affair and the approximate cost for this is $100. This can be obtained
through the condo board.
Home Inspection Fee – The home inspection is done to let the buyer know if there are any
deficiencies in the subject property that need to be repaired or will
soon need to be. The cost on a home inspection is between $150 to $500.
This inspection usually is completed prior to removing financing
Home Owners Insurance (Fire Insurance) – Home owner insurance is required on all dwellings mortgaged by a lender. the reason is they need to know there is adequate coverage to replace/repair the home in the event of fire or weather related damage to ensure their investment remains adequate.
Legal Fees – Most lenders require a lawyer to register a mortgages with Land Titles. The Lawyer will provide services such as conducting a current title search, drafting the title deed, and preparing the paperwork for the client to sign as well registration fees and any other disbursements. the range of legal fees can start at $400 and go up from there.
Title Insurance Fee – In recent years Land Title fraud has become a large enough problem
that most lenders require Title Insurance to help eliminate any risk to
the Lender and Client. The cost for Title Insurance will be from $165 to
$225 and this is a one time payment when registering the mortgage.