CONDO CLOSING COSTS IN TORONTO
Closing Costs For Condominiums
There are a number of closing costs in addition to the purchase price for your new condominium, including land transfer tax, adjustments and home inspection
Buyer Agent Services: One of the best things about my services is that they are absolutely FREE to you. Within the agency relationship between the Seller and their Listing Agent my compensation is addressed.
Legal Fees and Disbursements: This cost will vary anywhere from $1,200 to $1,900.
Land Transfer Tax: A one time only tax payable to the government. It is based on the purchase price of your home. First time buyers get a rebate if they buy a new property form a developer.
Formula for land Transfer Tax:
$55,000 to $250,000 (.01 x purchase price) minus $275
Over $250,000 (.015 x purchase price) minus $1,525
Over $400,000 (.02 x purchase price) minus $3,525
$250,000 = $2225 $400,000 = $4475 $600,000 = $8475
Adjustment Costs: This refers to the proportionate share of realty taxes, utility charges, condo maintenance fees, and similar costs. If the owner has paid these in advance, the new buyer must rebate these on closing date.
Status Certificate: The certificate will cost approximately $100 for condos and townhouses. This document provides a detailed outline of the finances of the Condominium Corporation, all rules and regulations, and any pending work orders or liens.
Home Inspection: Can range anywhere from $300 to $500 depending on size of home and inspection company. The home inspector should be insured and provide a detailed report on the quality and shape of the home.
Moving Costs: Professional moving services can help minimize the stress of your move, the cost will vary depending on several factors. Non-weekend rates tend to be the least expensive.
HARMONIZED SALES TAX AND REAL ESTATE ONTARIO
As we've talked about here before, the real estate industry is a major driver in the Canadian economy.
For example, in 2008, real estate in Ontario accounted for $56 billion in sales, $6.01 billion in ancillary economic spending and $1.35billion in land transfer tax revenue to the provincial government. In addition, real estate employs 110,000 Ontarian's directly and indirectly.
The Ontario government announced the new HST blending of PST and GST effective July 1st, 2010 creating a new combined tax rate of 13% on the purchase of almost all goods and services in Ontario.
Currently, certain services associated with a real estate transaction only attract GST and not PST. What that means is that consumers will be forced to pay 8% more for things like legal fees, home inspection fees, mortgage insurance premiums, moving costs and yes, real estate commissions.
According to a media release issued yesterday by the Ontario Real Estate Association, the HST could add over $2,000 in new taxes to closing costs.
They also say that overall, it will add $313 million annually in new taxes to resale home transactions.
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