Closing Costs
Condominium Closing Costs
On any new condominium purchase, there are several expenses mostly one time that need to be incurred. In order for you to budget we have included the most relevant.
Appraisal Fees
An appraisal of a property may be required to establish the market value of a property for mortgage purposes.
Closing Adjustments
Prepaid Expenses that the Seller has incured. Proportionate shares of which will be reimbursed for by the buyer. They include:
- Condominium Maintenance Fees
- Utilities such as heating and Hydro
- Municipal Property Taxes
GST
Goods and Services Tax applicable in certain instances. ie. New home developments
Interest Adjustment
Any interest accrued between your final closing date and and your first scheduled mortgage payment.
Land Transfer Tax
A tax charged to the buyer when a property changes ownership. This is generally the largest cost associated with any real estate transaction.
Legal/ Notary Fees and Disbursements
(notary in the province of Quebec)
Mortgage Application
Motgage Insurance
In the event that you require a high ratio mortgage (less than a 20% down payment), mortgage insurance may be required. Your lender will usually add the mortgage insurance premium to your mortgage upon closing.
Property / Fire Insurance
Proof of insurance will be required by the closing date.
Title Insurance
Title insurance can protect against fraud, title defects, forgery, and potential survey problems.
Status Certificate
Only required when purchasing a condominium . It outlines a condominium corporations legal and financial state.
Service and Utility Hook-up
Required for utility hook-ups for items such as telephone and heating services.