Calculating Closing Costs

An unexpected bill is the last thing buyers need at closing time.

House hunting is lots of fun but once you purchase a home, there are various fees you’ll be responsible for when closing time rolls around.

Your mortgage and down payment will cover the cost of your home but it’s important to proactively factor in the extra fees so you don’t get caught off guard. Here are some of the common costs to expect:

Appraisal Fee

In order to arrange a mortgage, the bank will require a home appraisal. The cost of the home appraisal is usually passed onto the buyer but it can oftentimes be worked into the mortgage.

Title Insurance

Title insurance is different than home insurance. Banks often require you to provide title insurance in order to arrange a mortgage, especially when a survey isn’t available.

Legal Fees

Your real estate lawyer is responsible for ensuring that all legal and financial conditions have been met and that there are no outstanding charges against your new home.

Taxes & Adjustments

You’ll be responsible for paying land transfer tax as well as any monetary adjustments such as reimbursing the seller for prepaid property taxes or maintenance fees.

Mortgage Insurance

If you don’t have a large down payment, you’ll need to pay for mortgage insurance which varies depending on the size of your downpayment and the amount of your mortgage.