For Buyers

One-Time Costs for Buyers 

There are many onetime costs when purchasing a home - one of which is the down payment of course, usually ranging from 5 - 30% of the total list price. Below is a limited list of costs that are not included in the asking price of real estate. Buyers should consider and include this list in their budget calculations. 

• Mortgage application
• Mortgage insurance (if applicable)
• Mortgage Interest Adjustment and take over fee (if applicable)
• Appraisal fee
• Property inspection (optional - but highly recommended)
• Land transfer, deed tax, or property purchase tax
• Deed and/or mortgage registration
• Home and property insurance
• Legal fees
• Legal disbursements
• Adjustments for fuel, taxes, etc.
• Connection charges for utilities
• Moving expenses

                             ------------------------------------------------------------------------

Land Transfer Tax  

Land transfer tax will be calculated when buying a property or an interest in land in the province of Ontario and most other regions in Canada (exceptions: Alberta, Saskatchewan, and rural Nova Scotia). It is based on the amount paid for land with the addition of any remaining mortgage or debt that is part of the arrangement. Buyers must include this in their closing costs as it will be their responsibility to pay.

This expense is calculated on a multi-tiered taxation system and in Ontario the following is used as an outline:

• Up to $55,000 X 0.5% of total property value
• From $55,000 to $250,000 X 1% of total property value
• From $250,000 to $400,000 X 1.5% of total property value
• $400,000+ X 2% of total property value

British Columbia:

• Up to $200,000 X 1% of total property value
• From $200,000+ X 2% of total property value

Manitoba:

• Up to $30,000 N/A
• From $30,000 to $90,000 X 0.5% of total property value
• From $90,000 to $150,000 X 1% of total property value
• From $150,000+ X 1.5% of total property value

Nova Scotia / Halifax Metro:

• 1.5% on total property value

The tax is paid at the time that the transfer is registered. Exemptions exist: transfers between spouses, between individuals and their family business corporation, transfers of framed land between family members, and transfers of life lease from a non-profit organization or a charity.

                             ------------------------------------------------------------------------

First Time Home Buyers    

As a first time home buyer, you may qualify for the instant first time homebuyer rebate in Ontario. Post qualification, first time homebuyers purchasing in Ontario will receive up to $2,000 off their Ontario Land Transfer Tax. If property is located in Toronto, they will also receive up to $3,725 off their Toronto Land Transfer Tax. 

Qualification for the instant first time homebuyer rebates for Ontario/Toronto Land Transfer Tax:

• At least 18 years of age,
• Application for the refund must be made within 18 months after the date of the conveyance or dispositions.
• Purchaser must occupy the home as principal residence within 9 months of the closing date.
• Purchaser cannot have owned nor had ownership of a home or any interest in a home, anywhere in the world.
• A spouse of the purchaser cannot have owned nor had ownership of a home or any interest in a home, anywhere in the world.