Outlined below you will find a basic summary of the various additional costs that you may incur over and above the actual purchase price of your home. These are to be used as a guide only. We will be happy to give you a detailed breakdown and explanation of your costs.
LEGAL FEES
Approximately $750 to $1000 (plus disbursements)
LAND TRANSFER TAX (Click here to calculate your land transfer tax)
Calculated as follows:
0.5% multiplied by first $55,000 of purchase price
PLUS 1% x $55,000 to $250,000 of purchase price
PLUS 1.5% x $250,000 to $400,000 of purchase price
PLUS 0.5% surcharge on purchase amounts over $400,000
STATEMENT OF ADJUSTMENTS
Purchaser and vendor are both responsible for their share of taxes, fuel and utilities
HOME INSPECTION
Approximately $400 depending on type of service requested. Strongly recommended, particularly for first time buyers.
MORTGAGE APPRAISAL
Approximately $175 to $225 + GST for single family homes up to $750,000. However, if the property is unique, or is worth $1,000,000 + or is a duplex, triplex, fourplex, etc., the cost will be more and is usually quoted on a case by case basis, based on the estimated time to complete.
TITLE INSURANCE
This is arranged by the lawyer for the lender and is billed to the buyer. The cost is generally about $180-$200 for title insurance.
CMHC FEE
If a buyer requires an insured mortgage with CMHC (anything less than 25% down payment) then there is a $165 CMHC fee which is charged to the buyer on closing (usually in the statement of adjustments). In addition to this, there are CMHC insurance premiums that are added onto the loan (therefore not an out of pocket expense to the buyer). The CMHC insurance premiums are based on LOAN to VALUE ratios and are as follows (i.e. 65% means that the mortgage is 65% of the purchase price/value of the property).
Up to and including 65% = 0.50% premium is added onto loan (also an 8% PST is charged which is not added onto loan an in the statement of adjustments)
Up to and including 75% = 0.65%
Up to and including 80% = 1.00%
Up to and including 85% = 1.75%
Up to and including 90% = 2.00%
Up to and including 95% = 3.25%
Up to and including 100% = 3.40% flex down (you can borrow 5% from your line of credit and get 100% mortgage)
** as indicated above, the insurance premium is based on the mortgage amount. i.e. if 95% = $100,000 mortgage, then premium = 3.25% = $3,250 which would be added onto the mortgage. However, there is also PST charged on the $3,250 of 8% = $260, which is paid by the buyer and will be in the statement of adjustments on closing.
Also, in 99% of the cases, there is no appraisal cost when mortgage is CMHC insured as CMHC guarantees the value through their automated valuation system. An appraisal will only be required if EMILE (their valuation system) says the value cannot be justified.
HOME INSURANCE
Typical single family home is approximately $500 per annum (compare by obtaining quotes from various insurance companies.
Detailed below you will find an approximate breakdown of the annual operating costs for homes that sold in the range of $300,000 to $600,000 in the Toronto area. These are to be used only as a guide. Costs can vary greatly from one property to the next depending on the condition, heating system, lot size, and various other factors. We will be pleased to provide you with the operating costs for specific properties.
PROPERTY TAXES
Payable in 8 installments each year
Varies from house to house and is based on the assessed value of the property.
HEATING
Can be hydro, gas or oil
Varies according to the type of heating and size of home
Approximately $1500 to $3000
ELECTRICITY
Approximately $1500 to $3000
INSURANCE
Approximately $850 to $1500
WATER & SEWERS
Approximately $600 to $1000
ONGOING MAINTENANCE
Approximately $1500 to $3000
