{"id":639,"date":"2025-04-02T10:00:42","date_gmt":"2025-04-02T16:00:42","guid":{"rendered":"https:\/\/tmorrismortgage.com\/?p=639"},"modified":"2025-05-05T10:01:53","modified_gmt":"2025-05-05T16:01:53","slug":"closing-costs-the-real-numbers-you-need-to-budget-for","status":"publish","type":"post","link":"https:\/\/tmorrismortgage.com\/?p=639","title":{"rendered":"Closing Costs \u2013 The Real Numbers You Need to Budget For"},"content":{"rendered":"\n<p>Buying a home is one of the most exciting ventures in life! To ensure it goes smoothly, you need to have a proper budget in place to protect your financial security and help you make the best decision for your future location. However, the cost of the home is not the only cost that you need to budget for! The temptation will always be to start looking at the very top of your budget but fees, such as mandatory closing costs, can easily put you over the top. Knowing the real numbers will make it that much easier to stay within your budget and maintain your financial comfort.<\/p>\n\n\n\n<p>Closing costs are a one-time fee associated with the sale of a home and are separate from the mortgage insurance and down payment. Typically, these costs range from 1.5-4% of the purchase price, depending on your location. This means, for an $800,000 home, you would be looking to budget around $22,000 on average.<\/p>\n\n\n\n<p>Here are a few closing costs to keep an eye out for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Land Transfer Tax:<\/strong>\u00a0This is calculated as a percentage of the purchase price of your home, with the amount varying in each province. Some cities, such as Toronto, also have a municipal LTT.<\/li>\n\n\n\n<li><strong>Legal Fees and Disbursements:\u00a0<\/strong>You can expect to incur a minimum of $500 (plus GST\/HST) on legal fees for the preparation and recording of official documents around your purchase.<\/li>\n\n\n\n<li><strong>Title Insurance:<\/strong>\u00a0Most lenders require title insurance to protect against losses in the event of a property ownership dispute. This is purchased through your lawyer\/notary and is typically $300 or more.<\/li>\n\n\n\n<li><strong>PST on CMHC Insurance:<\/strong>\u00a0Though CMHC insurance itself is financed through the mortgage, PST on the insurance is typically paid at the lawyers and sometimes deducted from your advance.<\/li>\n\n\n\n<li><strong>Home Inspection Fee:\u00a0<\/strong>A home inspection is highly recommended as a condition of your Offer to Purchase to prevent any future surprises. This can cost around $500.<\/li>\n\n\n\n<li><strong>Appraisal Fee:\u00a0<\/strong>An appraisal is performed to certify the lender of the resale value of the home in the case you default on the mortgage. The cost is usually $400 \u2013 $600 but is typically covered by the lender.<\/li>\n\n\n\n<li><strong>Property Insurance:\u00a0<\/strong>Property insurance covers the cost of replacing your home and its contents, and must be in place on closing day. This is paid in monthly or annual premiums.<\/li>\n\n\n\n<li><strong>Prepaid Utility Bills:<\/strong>\u00a0You may need to reimburse the previous owner of your property for prepaid costs such as property taxes, utilities, and so forth.<\/li>\n\n\n\n<li><strong>Property Taxes:<\/strong>\u00a0Property taxes are due on an annual basis and are calculated as a percentage of the home value and vary by municipality. You also may need to reimburse the previous property owner if he\/she has already paid property taxes for the full year.<\/li>\n<\/ul>\n\n\n\n<p>Knowledge is power and understanding the hidden costs associated with purchasing a home can help you create a realistic budget and ensure you remain within your financial means. Contact a DLC Mortgage Expert if you have any questions about your current purchase process or if you are looking to buy a new home now or in the future!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a home is one of the most exciting ventures in life! To ensure it goes smoothly, you need to have a proper budget in place to protect your financial security and help you make the best decision for your future location. However, the cost of the home is not the only cost that you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","hide_page_title":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-639","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Closing Costs \u2013 The Real Numbers You Need to Budget For - T Morris Mortgage<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tmorrismortgage.com\/?p=639\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Closing Costs \u2013 The Real Numbers You Need to Budget For - T Morris Mortgage\" \/>\n<meta property=\"og:description\" content=\"Buying a home is one of the most exciting ventures in life! 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