Closing Costs: Part One

Today I’m discussing Part One of the costs due when buying a home in Ontario.

Being well informed and knowing all the costs that are associated with the purchase of a property can help you budget accordingly and allows you to take the stress out of buying a home.

Here is a list of the costs:

  1. Deposit: this is usually around 5% of the purchase price here in the GTA. This amount has to be liquid and paid within 24 hours after an agreement has been made.
  2. Home inspection: this is recommended for the buyer as part of their conditions and be satisfied within the conditional period after an agreement is made. Home inspections run anywhere from $250 for a condo to $450 and up for other home types.
  3. Appraisal fee: this is anywhere from $250 and up. This is when the lender sends in an appraiser to evaluate the home’s value and see if it lined up with what you agreed to pay. If the lender feels the value is less than you paid, you may have to cover that difference upon closing. Some lenders may waive the appraisal fee which is typically around $250 and up.

Are you ready for Closing Costs: Part Two? I think so!