Closing Costs Guide for Houses & Real Estate

One of the most common questions we are asked of clients is; “ what are the costs to sell and purchase a home?”

Buyers want to try to determine how much money they need to have saved prior to going to look at homes and sellers want to determine how much money they will have left over after they sell their home.The following is a rough guide of usual expenses for a real estate transaction.

The costs on the purchase of a home include:

• Government transfer fee of 1% of the purchase price
• Legal fees
• Registration of the mortgage
• Purchasers share of current year property taxes
• Any adjustments for fuel in the house being purchased
• Various costs for processing documents

The costs to the seller of a home include:

• Realtor commission
• Legal fees
• Any penality on your mortgage payout
• Vendors share of property taxes
• Various costs for processing documents

Note that most of the above items are subject to HST so factor that in as well.

This is just some of the costs that are involved and the purchase and sale of a home. These costs will vary from house to house and situation to situation. Only your lawyer can tell you exactly what these costs will be.