Below you can find information about:

Closing
Closing Day:  What happens on closing day?
Costs
Land Transfer Tax



Closing

What does the term closing mean?
Closing refers to the preparation for the transfer of ownership of a property from the seller to the buyer.

There is no standard method for closing. In some places, "round table" closings bring all parties together at the closing table. In other areas, buyers and sellers complete the process through separate, individual appointments with their lawyer.



Closing Day

What happens on closing day?
Closing day is the day you become the official owner of your home.

Typically, you visit your lawyer's office to review and sign documents relating to the mortgage, the property you are buying, the ownership of the property, and the conditions of the purchase. Your lawyer will also ask you to bring a certified cheque to cover the closing costs and any other outstanding costs.

Once the mortgage and the deed for the property are officially recorded, you become the official owner of the property and your lawyer will call you to pick up the keys to your new home.

Congratulations! You've just bought a home!



Costs

When you buy a home, you will be asked for a down payment, usually between 5 and 25% of the total price of the property. You might also have a number of other fees and expenses to pay.

Some of the most common expenses are listed below. These expenses may vary, depending on your area:

                   Expense                                                                                            Paid At 
Mortage application and appraisal fee                                                    Time of application 
House inspection (optional)                                                                       Time of application 
Legal fees                                                                                                    Closing 
Legal disbursements                                                                                  Closing 
Deed and/or mortgage registration                                                          Closing 
Property survey (sometimes provided by seller)                                      Closing 
Land Transfer Taxes by province                                                              Closing 
Property tax adjustments                                                                          Closing 
Fuel adjustments                                                                                       Closing 
Mortgage insurance                                                                                  Closing 
Title Insurance                                                                                           Closing 

Contact Us to estimate the full cost of your home.



Land Transfer Tax

Purchasers in most large Canadian centres can add Land Transfer Taxes to their list of closing costs. Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, Land Transfer Taxes (or property purchase taxes) are a basic fact of life.

Land Transfer Taxes, levied on properties changing hands, are the responsibility of the purchaser. Depending on where you live, the taxes can range from 0.5% to 2% of the total value of the property.

Many provinces have multi-tiered taxation systems and these can be complicated. If you purchase a property for $260,000 in Ontario, for example, 0.5% is charged on the first $55,000; 1% is charged on $55,000 to $250,000, and 1.5% is charged on $250,000 to $400,000.

Use the Land Transfer Tax Calculator to estimate the land transfer tax for your new property. 



Land Transfer Taxes by province:

British Columbia
Property Purchase Tax
Up to $200,000 X 1% of total property value
From $200,000 up X 2% of total property value

Manitoba
Land Transfer Tax
Up to $30,000 N/A
From $30,000 to $90,000 X 0.5% of total property value
From $90,000 to $150,000 X 1% of total property value
From $150,000 up X 2% of total property value

Ontario
Land Transfer Tax
Up to $55,000 X 0.5% of total property value
From $55,000 to $250,000 X 1% of total property value
From $250,000 to $400,000 X 1.5% of total property value
From $400,000 up X 2% of total property value

Quebec
Transfer Tax
Up to $50,000 X 0.5% of total property value
From $50,000 to $250,000 X 1% of total property value
From $250,000 up X 1.5% of total property value

Nova Scotia
Land Transfer Tax
Halifax Metro: 0% to 1.5% on total property value
Outside Halifax County: Check with local municipality.