Buying Real Estate: The Costs
Please note all figures quoted below are subject to change without notice.
HST:HST of 12% (5% federal component plus 7% provincial component) will apply to new residential housing. For new housing purchased as a primary residence, all home buyers who purchase a new home will receive a rebate of 71.43% of the provincial portion of the HST to a maximum of $26,250. There is no HST on resale housing. ( HST Calculator )
Property Transfer Tax: This tax is 1% on the first $200,000 of the sale price and 2% on the remainder. First-time buyers may be exempt from paying this tax.
Prepaid property taxes or utility bills: You will have to reimburse the sellers for any prepaid property taxes or utilities. Generally property taxes for the calendar year are paid at the beginning of July. If you purchase a property before July 1st, the seller will be paying you for the days they owned the home after January 1st. If you purchase a property after July 1st, you will pay the seller for the days you own the property before December 31st.
Mortgage loan insurance: If you get a high-ratio mortgage (a mortgage where you pay less than a 20% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. The insurance premium usually gets added to your mortgage. (CMHC Premium Calculator)
Mortgage application fee: You will also have to pay an application fee. CMHC's standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal.
Property Appraisal: Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $150 to $350.
Survey Certificate: Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $150 to $350. Surveys are not necessary if the purchaser is buying a strata property. Ask about Title Insurance as an alternative.
Home Inspection fee: Most REALTORS@reg; recommend that you get a home inspection by a certified home inspector. It will cost you from $400 to $500 for a smaller house. Large houses may cost more.
Legal fees: Lawyers/Notaries will cost you approximately $850 for a purchase, and $550 for a sale.
Disbursements to Land Titles Office: These fees are approximately $300. Your lawyer or notary will arrange this payment.
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