Closing is the day you (or your lender) hands over the full amount of the purchase price and Title gets transferred from the seller to the buyer. This is also the day the buyer gets the keys to their Condo! However, one thing all buyers should be aware of are closing costs. Make sure you work it into your budget. Ideally, you should budget 1.5%-3% of the purchase price for Closing costs. Closing costs are made up of a number of different expenses/adjustments and below we've listed a few common ones.
When purchasing real estate you are required to obtain a lawyer to handle such tasks as reviewing the Status Certificate, preparing the mortgage, drafting title documents and conducting various searches. Costs can vary so it's a good idea to get a quote.
The amount you pay in Land Transfer Tax will differ depending on where you live. If you are buying a condo or any property in Toronto you will have the Ontario Land Transfer Tax and the Toronto Land Transfer Tax. Learn More
Any time you require a Mortgage, a Mortgage Appraisal will need to be conducted in order
to determine fair market value for your home.
A Home Inspection is often done to determine the condition of the home.
Mortgage insurance premiums can often be added to your mortgage. There will be taxes on this premium that will be paid on closing.
Typically you are expected to make your first mortgage payment one month after closing on your new home. However, if you are closing mid-month, you may need to pay interest on the time between your first payment and the closing date. You can avoid interest adjustment by setting up your first mortgage payment exactly one month after your closing date.