How much do I need for closing costs?

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
  •  …

Since I am not part of the closing process for my clients I don’t have the a lot of Homeexperience with the details.  I can only comment on them from personal experience.

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

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