Head
bottom
Estimated Closing Costs
Item
Description
Standard Costs
Estimated Costs
Purchase Price      
3.2% on properties < $350K
5% on properties > $450K
Partial Exemption $350K-$450K
GST (5%) is only applicable on new homes. Rental and pre-sales also qualify for an exemption. Conditions apply.    
Property Purchase Tax      
-Exempt for first time buyers up to $450K
-1% on first $200K, 2% on balance
This is a provincial tax that is charged when the property is purchased.  First Time Buyer Exemptions do apply.    
Legal Fees and
Disbursements
     
  Lawyer Fees for legal transactions relating to purchase and mortgage. $800-$1200  
Appraisal Fees      
  To evaluate the current market value of the property.  Required by the Lender if the down payment is less than 20% $250-$500  
Title Insurance/Survey
Fees
     
*Ask seller/vendor if one is available Survey shows where the home sits on the plot. Title insurance is a low cost option if no survey is available. $200 and up  
Home Inspection Fees      
  To evaluate the structural and mechanical conditions of the property and identify potential problems prior to subject removal. $275 and up  
Home Insurance      
  Insures the value of your home and its contents.  Fire insurance is usually required by the lender, but additional insurance is optional. See insurance broker  
Adjustments
(Taxes/Strata Fees)
     
  This reimburses the current owner of any property taxes, strata fees, or utilities they have pre-paid. Consult lawyer  
Total Closing Costs Total Due at Closing    

HST ADDENDUM

HST Decoded

On July 1, 2010 HST will replace GST on New Home Purchases. However, there is a phase in period that must be understood in order to accurately budget for your new home.

If the date of the purchase contract is on or before November 18, 2009, GST (5%) will be applied with the same exemptions as have previously been stated, regardless of completion date. If the purchase is made (contract signed) after November 18, 2009 GST (5%) will be applied ONLY if completion is before July 1, 2010. If completion occurs after July 1, 2010, HST will be applied.

All contracts signed after July 1, 2010 will be subject to HST (12%)

HST Rebates

HST is a harmonized tax comprised of GST (5%) and PST (7%). The rebate Programs for First Time Home Buyers are computed using two different calculations for two portions of the HST as follows:

GST rebates are at 36% of GST payable for purchases under $350,000; partial rebate between $350,000 and $450,000; no rebate on purchases over $450,000.

The PST portion rebate is 71.43% of PST payable up to a maximum rebate of $26,250 (approximate purchase price of $525,000)

In Short

        If the purchase price is under $525,000, the purchaser will effectively pay GST (with applicable rebates) plus 2% of the original purchase price (comprised of the PST)

        If the purchase price is over $525,000, the purchaser will pay 12% HST less $26,250 in maximum PST rebate.

Purchase Price PPT PPT Rebate if FTHB GST GST Rebate PST PST Rebate
$300,000 $4,000 $4,000 (100%) $15,000 $5,400 $21,000 $15,000
$350,000 $5,000 $5,000 (100%) $17,500 $6,300 $24,500 $17,500
$425,000 $6,500 $6,500 (100%) $21,250 $1,912.50 $29,750 $21,250
$450,000 $7,000 None $22,500 None $31,500 $22,500
$525,000 $8,500 None $26,250 None $36,750 $26,250
$1,000,000 $18,000 None $50,000 None $70,000 $26,250
Site by
Thinkreferrals Business Network