There is no exact answer to this question. Each house or condo is different. I do have an answer though; it’s at the end of this article.
There are many reasons why closing costs are different on each property, some of them are:
- The Seller may have prepaid property taxes or utilities
- The Seller may have prepaid for rental equipment (Hot Water Heaters, Furnaces)
- The cost of your lawyer is different than the cost of other lawyers
- The Land Transfer tax may be on a sliding scale (as it is here in Toronto)
- Here’s a link to the Toronto Real Estate Land Transfer Tax Calculator from the Toronto Real Estate Board
What I do tell my clients that here in The Toronto Real Estate Market, they should budget about 2.5% of the purchase price for closing costs. To some of you, I am sure that it seems a little high, but here in Toronto we have both a Toronto and an Ontario Land Transfer Tax.
If you’re thinking of buying or selling Toronto Real Estate, just call me at 416-671-5775