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May 9, 2023 · Legal costs. Legal costs can include service provided by your lawyer, such as preparing the mortgage, conducting a title search, and drafting the title deed. The estimated cost for legals fees is about $500, plus GST/HST, which you pay to your lawyer upon closing. 5. Municipal and provincial tax.
The sales tax in Ontario is 13% of the real estate commission fee, or $3,250. The legal fees are approximately $1,300, based on a typical range of $1,000 to $1,600. In total, Bobby will pay $29,550 in the cost of selling his home. Assuming he owns all of the equity in his home, he will receive $470,450 upon closing.
- Realtor’s Commissions. The seller is usually responsible for paying the commissions to realtors or real estate agents used by them and the buyer. These commissions can set you back between 3-7% of the selling price of the house.
- Legal Fees. Your real estate lawyer will work with the buyer’s lawyer and other relevant parties (bank, etc.). They review all legal documentation, prepare a statement of adjustments for taxes or utilities owed or prepaid, review and discharge the title for the property and mortgage, deliver the closing packages and keys to the buyer’s lawyer, and much more.
- Closing Adjustments. Your lawyer will prepare a statement of adjustments. Depending on how you pay your property taxes and utility bills (i.e. prepaid or accrued), you may have to pay what is owed up until the closing day or be due for a refund if you have paid these expenses in advance.
- Bank Fees. If you have a mortgage and plan to pay it off with the proceeds of your sale before the term ends, you may be subject to prepayment penalties.
Closing costs range from 1.5% to 4% of a home’s purchase price. On a $500,000 home, expect $7,500 to $20,000 in fees. Major closing costs include land transfer taxes, legal fees, and title insurance. Costs vary by province and property type. For example, Ontario’s land transfer taxes are higher than Alberta’s, and houses generally cost ...
- Closing costs in Canada typically range from about 1.5% to 4% of the property’s purchase price, in addition to the down payment. These costs can be...
- Closing costs differ due to factors like location, property type, and various fees associated with the transaction, such as legal fees, land transf...
- In Canada, it’s common for the buyer to cover most of the closing costs. However, certain costs, such as the realtor’s commission and mortgage pena...
- When purchasing a house in Canada, lawyer fees often range between $500 and $1,000, depending on the complexity of the transaction and the legal se...
- In Ontario, title insurance costs usually fall between $250 and $400 for real estate transactions.
Closing costs are one-time fees that the real estate buyers must pay when they decide to purchase a property in Canada. These costs include, but are not limited to: land or property transfer taxes, lawyer fees and inspection fees. In most cases, they have to be paid upfront and cannot be rolled into your mortgage.
Sep 30, 2024 · Closing costs can vary, but you can expect to pay roughly 1.5% – 4% of the home’s purchase price. For example, closing costs on a $300,000 home could cost you anywhere from approximately $4,500 – $12,000. That’s only an estimate, of course. Your actual closing costs could be higher or lower, depending on numerous factors.
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Apply for a clearance certificate. A non-resident withholding tax of 25 per cent of the home’s gross sales price (50 per cent if it is a rental property). File a Section 216 return to confirm that they have reported rental income and paid taxes (this is if the property has been rented out). Submit a Canadian tax return for the year of the sale.
