Royal LePage Videos - Home Buying Series
Episode 1: Helping You with Financing Your Home Purchase
Episode 2: Helping You Determine Your Needs & Wants
Episode 3: Helping You with Your Home Search
Episode 4: Helping You Make an Offer
Episode 5: Helping You Close Your Home Purchase
Episode 5 of our Home Buying Series provides you with information on what you should be prepared for on moving day and how the GRACEs can help manage you through the process.
Watch the video and then read the relative information below!
Episode 5 of 5: Helping You Close Your Home Purchase
Closing Day
What happens on closing day?
Closing day is the day you become the official owner of your home.
Typically, you visit your lawyer's office to review and sign documents relating to the mortgage, the property you are buying, the ownership of the property, and the conditions of the purchase. Your lawyer will also ask you to bring a certified cheque to cover the closing costs and any other outstanding costs.
Once the mortgage and the deed for the property are officially recorded, you become the official owner of the property and your lawyer will call you to pick up the keys to your new home.
Congratulations! You've just bought a home!
Costs
When you buy a home, you will be asked for a down payment, usually between 0 and 25% of the total price of the property. You might also have a number of other fees and expenses to pay.
Some of the most common expenses are listed below. These expenses may vary, depending on your area:
| Expense | Paid |
| Mortgage application and appraisal fee | At time of application |
| House inspection (optional) | At time of application |
| Legal fees | Closing |
| Legal disbursements | Closing |
| Deed and/or mortgage registration | Closing |
| Property survey (sometimes provided by the seller) | Closing |
| Land Transfer Taxes by province | Closing |
| Property tax adjustments | Closing |
| Fuel adjustments | Closing |
| Mortgage insurance | Closing |
| Title insurance | Closing |
Land Transfer Tax
Purchasers in most large Canadian centres can add Land Transfer Taxes to their list of closing costs. Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, Land Transfer Taxes (or property purchase taxes) are a basic fact of life.
Land Transfer Taxes, levied on properties changing hands, are the responsibility of the purchaser. Depending on where you live, the taxes can range from 0.5% to 2% of the total value of the property.
Many provinces have multi-tiered taxation systems and these can be complicated. If you purchase a property for $260,000 in Ontario, for example, 0.5% is charged on the first $55,000; 1% is charged on $55,000 to $250,000, and 1.5% is charged on $250,000 to $400,000.
Ontario Land Transfer Tax
http://www.gracehomes.com/4a_form.php?record_id=5891
Toronto Land Transfer Tax
http://www.gracehomes.com/4a_form.php?record_id=5890
