Kelly Koselek

Costs Associated with Buying a House/Condo


1. Down Payment and Deposit - the deposit is paid at the time of acceptance of the offer and is usually about 5% of the purchase price. The down payment (total down payment less the deposit) is payable by certified cheque to your lawyer approximately 3-4 business days before the close of the transaction.)


2. High Ratio Insurance Premium (CMHC) if Deposit is less than 25%

Loan-to-Value Premium on Total Loan
Up to 75.01% 0.75%
75.01-80% 1.25%
80.01-85% 1.80%
85.01-90% 2.40%
90.01-95% 3.60%

90.01 to 95%
        _

Non-Traditional Downpayment**

3.85%
Example
$800,000 Purchase Price
$150,000 Down Payment (18.75%)
$650,000 Mortgage required

Therefore the Insurance Premium is ($650,000 x 1.8%) = $11,700 + tax
This Premium can either be paid in cash or added to the mortgage, but the PST must be paid on closing.


3. 

Ontario Land Transfer Tax (LTT) Costs +

+ 1% of the amount from $55 - $250,000 = $1950 +

+ 1.5% of the amt.t from $250 - $400,000 = $2250 +

+ 2.0% on the amount from $400,000 up

Toronto Land Transfer Cost (416 area code)

0.5% of the first $55,000 ($275)

1% of the amt from $55 - $400,000 = $3450

2.0% on the amt from $400,000 up

Or… >$400,000 = (0.02 X Amount) - $3525

Example Toronto house taxes payable at :
$275,000 = $2600 + $2475 = $5075
$450,000 = $5475 + $ 4725 = $10,200
$700,000 = $10,475 + $9,725 = $20,200
$1,000,000 = $16,475 + $15,725 = $32,200
Note – 1st time home buyers are eligible for a rebate of the Toronto LTT. Your lawyer will provide details.

4. Legal fees      $800 – 1500 + Legal Disbursements
Legal Disbursements i.e. Title Search, Register Deed, Register Mortgage...
On a $500,000 house, expect to pay about $1500 (plus the legal fees) Note: wherever possible, use a lawyer who specializes in Residential Real Estate.

5. HST If the house/condo is new (never been lived in) HST must be paid.

6. Home Inspection      $450+ (the larger the house, the more it costs).
Status Certificate for a condo = $100.00. This is usually paid for by the Seller.

7. Disbursements i.e. prepaid taxes, prepaid Condo Maintenance fees,...

8. Miscellaneous - moving costs, house insurance, cleaning, painting (if first house – yard supplies such as a rake, shovel, lawn mower...)




KELLY KOSELEK, BSc, M.B.A. Bus. 416-489-2121 Cell:647-273-7597
Royal LePage Real Estate Services Ltd, JOHNSTON & DANIEL DIVISION, Brokerage