What Are Closing Costs?

When buying or selling your home, it’s important to budget for additional closing costs. Closing costs are the additional costs included in the process of buying a home, besides the sale price of a property. Here are some of the most common closing costs to keep in mind during your real estate transaction.

Home Inspection

A home inspection is done by a licensed professional prior to the purchase of a home. It is a thorough review of the entire house, including areas such as the roof, foundation, electrical, plumbing, heating and construction. This review and the resulting detailed report are important for both the seller and potential buyer, especially if there are any possible concerns about the property.

Insurance

An important closing cost to budget for is insurance. This can include title insurance, home insurance and moving insurance.

Legal Fees

A lawyer or notary must transfer the property ownership with the Land Titles office and if applicable register a mortgage on title.

Property Transfer Tax

This tax is imposed by the provincial government and will be collected by your lawyer or notary. First-time homebuyers may qualify for an exemption.

Moving Costs

Moving costs can include hiring a professional moving company, utility set-up, transportation and storage fees.