So, you’ve been pre-approved for a mortgage and your broker has told you the maximum figure that you can afford. Now you’re ready to start your condo search. Well, almost. Although you know the size of the mortgage you can afford, you still need to be aware of how much you’ll need to fork out for condo closing costs.
It’s important to have a firm grasp on all the expenses involved, so you’re not caught off-guard and scrambling to come up with some funds.
We’ve summarized the full list of condo closing costs below, but first, let’s take a look at a few that you may not be aware of.
1. Deposit
When you put an offer to purchase in on a condo, you’ll need to come up with a deposit, typically 5% of the purchase price. These funds will become part of your down payment when you close.
2. Land Transfer Tax
The amount of land transfer tax varies depending on the purchase price of your home and where your home is located. In Toronto, you pay the Ontario land transfer tax plus an additional tax to the city. These could each be up to 2.5% of the value of your home! This is typically the largest “extra” cost you’ll need to pay on closing. Here’s a handy calculator to help you figure out how much you might have to pay.
3. Maintenance Fee & Tax Adjustment
If you seller has paid taxes or maintenance fees that extend beyond your closing date, these adjustments will be charged to you at closing. It’s unlikely that these will be huge amounts, but all of these costs add up.
4. HST
In Ontario, you’re going to have to pay our Harmonized Sales Tax (HST) on many of the costs, including lawyer’s fees and moving expenses. HST is 13% so it can make quite a dent.
Full List of Condo Closing Costs
Pre-closing costs
- Deposit with offer to purchase
Closing costs
- Down payment
- CMHC / Genworth application fee (for high-ratio mortgages)
- Legal fees, disbursements
- Land transfer tax
- Maintenance fee adjustment
- Tax and interest adjustments
- GST / HST
Post-closing costs
- Moving expenses
- Key deposit
- Small renovations and repairs
- Decorations (e.g. window coverings, light fixtures)
- New furniture
- Utility hook-up
- Property insurance
- Property taxes (holdback)
As you can see, it’s a long list! We typically recommend to clients to keep back some extra cash for unexpected closing costs.
We’re always available to start a conversation with you to help give you a clear picture of all your condo closing costs. Just contact the ThompsonSells team and we’ll help you every step of the way.
Looking for more info?
Get in touch and find out how we can help.
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