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These are 'typical' additional costs associated when buying real estate in Ontario - more particularly in Mississauga and the GTA.
The deposit is part of the Purchase Price and will be required by your Selling Agent usually upon acceptance of the offer. Generally five to ten percent is the expected amount, usually $5000 to $10,000 for a condominium or townhome purchase and $10,000 to $50,000 for a detached home purchase. Not everyone has the money in an accessible account so a split deposit - part now and the rest at a later date, is sometimes acceptable.
A home inspection has become almost standard in the freehold and condominium townhome purchase. An inspection usually costs between $275 and $350 for most homes but increases with the cost of the home over $300,000. The companies that we recommend usually charge a base of $300 to $375.
Home Inspection Issues, concerns, tips and information
You, your bank and/or your lawyer want to know exactly what it is that you are buying. A survey that shows the lot dimensions and the location of any structures is very important. If the Vendor does not have a current survey or if the vendor will not give representations and warranties on closing and your bank is insistent then you may be required to have a new survey drawn up. Title insurance is now available in Canada and can often be used in place of a new survey, typical cost is $300 to $400 for title insurance. Your lawyer can best advise you on which route to go.
You will need a lawyer to search the title and cover all the legal matters. Rates vary greatly, starting at about $450 for the lawyer's time. In addition you must pay for the disbursements which the lawyer pays on your behalf. The average total bill should run to approximately $1100 - $1200. Shop around! Call some lawyers and get quotes for comparison.
Following is a list of common disbursements:
• search title.
• gas, hydro, water and tax certificates.
• sheriff's certificates as to executions.
• zoning compliance certificate.
• estoppel certificate (if a condominium), photocopy and long distance
etc.
• sub search before closing.
• land transfer tax.
• register deed.
• register mortgage.
• survey.
Everyone who is involved in buying real estate in the US is familiar with "title
insurance" but in Canada this is a recent option to buyers. In many cases
it can save you money. In addition, some title insurance companies offer a mechanical
and appliance warranty. Be sure to ask your lawyer about "title insurance".
Approximate cost is $300 and up.
Use my Handy ONLINE Land Transfer Tax Calculator
Payable on closing - it is a multi-tiered formula and applies to purchase price only:
Price between $ 55,000 - $250,000 ………… price x 1 % less
$ 275
Price between $250,000 - $400,000 …………price x 1.5% less
$1,525
Price over $400,000 ………….........................price x
2 % less $3,525
If you obtain a high ratio mortgage ( a mortgage where you pay less than 25% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. If you qualify for a 5% down payment, CMHC charges an insurance fee that equals 3.75% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2.5% and 2% respectively. The insurance premium is usually added to your mortgage principal amount on closing, this way you do not have to come up with the additional amount of the insurance premium. Refer to www.cmhc-schl.gc.ca for more information.
If the Vendor has paid the full year's taxes in advance, the Purchaser must reimburse him, adjusted to the date of closing. This becomes part of the "Adjustment Statement" prepared by your lawyer.
If the property is heated with oil, convention dictates that the Vendor must fill the tank for closing and then the Purchaser reimburses him on closing. NB: If you are switching to gas then make sure that your lawyer and the Vendor know well in advance of closing so the tank isn't filled. This is part of the "Adjustment Statement".
The house must be insured prior to closing. The annual premium will be about $400.00 and up. Many insurance companies will not insure homes with less than 100 amp service or with the old style "knob and tube" wiring, which is present in most older homes. This added cost can be determined during the inspection.
There is NO HST payable on resale homes unless the owner has been carrying on a business in the home and applying for tax credits, in which case the HST is his responsibility.
The 7% GST applies to new housing, however, there is a rebate (to the builder) up to a maximum of 2.5% on homes which cost less than $450,000. New rules with the HST, please check the Ontario government HST websites
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Back to Mississauga Homes for Sale Questions? or need
more information? Send
Mark an E-mail , or phone him at 905-828-3434