Calculating Your Closing Costs

Thursday Aug 18th, 2016


An unexpected bill is the last thing my buyers need with the purchase of their new home and it is easy to overlook closing costs when you are house hunting.  I always ensure that I educate my clients because I understand how buying a home can be an emotional roller coaster. 


Knowing what costs are involved when my clients purchase, can help the transaction to be smoother and less stressful.  The mortgage and down payment will cover the price of the home but there will be extra fees involved. 


You will pay some costs at the beginning of the home-buying process and others, known as closing costs or disbursements, when your home purchase is finalized.  Some common costs are:

  1. Legal fees and related expenses  
  2. Home Inspection
  3. Land Transfer Taxes (1st time homebuyers qualify for rebates)
  4. Title Insurance
  5. Insurance Costs for High Ratio Mortgages (if you are putting less that 20% down this one time fee can be worked into your mortgage)
  6. Prepaid property taxes and utility adjustments on closing
  7. Appraisal fees (most banks request this and may work the charge into your mortgage; speak to your mortgage advisor regarding this charge)

This list are just a few things you would need to take into consideration as costs may vary depending on your situation or type of home.  I generally recommend my clients to have at least 2% or more of the purchase price for their closing costs. 


Looking to purchase?  Let me guide you to find your dream home today!

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