Don’t Forget About Closing Costs!
Wise Wednesday Tip: Don’t Forget About Closing Costs!
When you’re preparing to buy a home, it’s easy to focus on the purchase price, down payment, and mortgage approval. But one of the most common oversights is underestimating closing costs.
Closing costs are the additional expenses you’ll need to cover before the keys are officially yours. They typically range from 1.5% to 4% of the purchase price (sometimes more, depending on the property and location). These aren’t “optional extras”, they’re mandatory costs that every buyer should budget for.
Here’s what they may include:
• Land Transfer Tax: A government tax based on the purchase price of the home (first-time buyers may qualify for rebates).
• Legal Fees: Your lawyer will review contracts, register the property, and ensure the transaction is completed properly.
• Title Insurance: Protection against potential ownership disputes or property record issues.
• Home Inspection & Appraisal Fees: If not already paid earlier, these can be part of your final expenses.
• Adjustments: You may need to reimburse the seller for prepaid utilities, property taxes, or condo fees.
Pro tip: Start setting aside funds for closing costs as early as you start saving for your down payment. Being prepared means no last-minute scrambling and helps you move into your new home with peace of mind.
Buying a home is one of life’s biggest investments. Planning ahead for all the costs ensures a smoother, stress-free transition to homeownership.
The Graff Group Toronto: Icons of Real Estate
Samantha Graff Benmor & Cheryl Graff
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