31 Aug Dont forget the Closing Costs

Before the final closing, your lawyer will provided you with a document prepared by the developer’s lawyers called a Statement of Adjustments.  It sets out a variety of extra costs that need to be paid on closing.  We have seen many that many first time buyers are not made aware of these adjustments and had not budgeted for. These are usually 1.5% to 4% of the property costs.

When buying a resale or existing condo, you need to be aware of certain closing costs. Below is a list of all the possible costs:

Land transfer tax: Calculated as a percentage of the purchase price of your home, all provinces have a Land Transfer Tax (LTT) payable on closing, with the amount varying in each province. Some cities, such as Toronto, also have a municipal LTT.
Bank appraisal fee(An appraisal, which is an estimate on the value of your home, is often covered by your mortgage lender.)
Mortgage application fee
Legal fee, title and disbursements.
High ratio mortgage insurance fee
Prepaid tax reimbursement
Prepaid condo fee reimbursement
Hook-ups:  For new home/condos, hook-up charges required for installation of hydro, gas and water connection.
Development levies: Remember that when you buy a new condo from floorplans, there are development charges or development cost levies, One of the most important clauses in your agreement will be to “cap” those levy charges so that they don’t go out of control. When Capped, typically around 5k to 7.5K by developers on studio/1B unit, It could go up to 10 of thousands of dollors if not capped.
Occupancy fee: Additionally for new condos, your first closing is when you occupy the suite. At this point you do not yet own the unit, you are known as an occupant. You pay the Developer an occupancy fee until the building registers with the City of Toronto. Currently 6 months to an year is a typical occupancy period. Occupancy fee is calculated as                                                                                                                                                                                                                                                  Occupancy Fees  = Interest on the unpaid balance of your purchase price + estimated property taxes +  monthly condo/maintenance fees