Land Transfer TaxLand Transfer Tax ( LTT) Is a large component of the closing costs. When you buy land or an interest in land in Ontario you must pay the provincial land transfer tax. Note also that for land purchases in the city of Toronto, the municipality has been granted the authority to impose a municipal land transfer tax in addition to the provincial land transfer tax.
The Provinical Land Transfer Tax is calculated as follows:
- 0.5% of the value of consideration for the transfer up to and including $55,000,
- 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
- 1.5% of the value of the consideration which exceeds $250,000, and
- 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.
- 0.5% of the value of consideration fro the transfer up to and including $55,000
- 1.0% of the value of the consideration which exceeds $55,000 up to and including $400,000
- 2.0% of the amount by which the value of the consideration exceeds $400,00
Additional Costs to ConsiderTitle Insurance is a statement of title or ownership of real property which ensures that your property is of "good and marketable"" title. It provides protection against identity fraud, old liens against the property that were not discharged, unpaid property taxes, or undisclosed claims against the land. Approximate Cost: $250.00 (for residential)
Legal Fees vary according to the solicitor chosen, the complexity of the transaction or how much time and effort was required to successful complete the transaction. Approximate Cost: $550.00 - $700.00 for the average closing.
Disbursement costs are monies paid out by the solicitor to third parties to prepare the documents for closing. These costs will include courier costs, photocopies, registration fees, etc. Approximate Cost: $350.00
Adjustment costs are items that the Seller will have prepaid by the closing date, such as the year’s property taxes or water account, which will be apportioned between you and the vendor as of the closing date. Approximate Cost: $500
Home Insurance premiums will vary depending on the amount of coverage chosen or the type of customized plan chosen. You should note that condominium insurance premiums covering the common areas and the building structure are included in the maintenance fees however insuring the interior of the units is the owners responsibility. Approximate Cost: Varies
Home inspection is provided to give the client a professional evaluation of the condition of the home at the time of the inspection. Various components of the home such as the building structure, exterior coverings, roofing, plumbing, electrical, heating, insulation, etc. are inspected. A home inspection report may be requested by the financial lender prior to the mortgage approval. Approximate Cost: $300.00 - $400.00
Mortgage application costs are sometimes waived by the lending institution. However if you are applying for a high ratio mortgage you may be asked to pay the processing fee. Approximate cost: $230.00
Status Certificate details the condominium's by-laws, rules and regulations, and financial status. It will disclose if there are any arrears or increases expected in the maintenance fees,if there are any claims or legal proceedings against the condominium corporation, and if the reserve fund is sufficient to cover unexpected major repairs. The status certificate is usually paid for by the Seller. Approximate Cost: $100.00
A Survey of the property is often supplied by the Seller if requested through the Agreement of Purchase and Sale. However in some cases the survey may be out of date or the Seller may not be able to provide a survey. In this case the Buyer may be required to purchase a new survey.
Approximate Cost: Varies
* Please note that costs listed are estimates only, and do not represent costs at time the services may be provided. Examples are presented as an estimate only. GST may be extra. Please contact the Vendor or the Professional Service Providers for verification of cost.