Home / Cottage Buyers’ Road Map Part 7 : Closing and Related Costs

Closing costs are the legal, administrative and disbursement fees associated with buying a cottage or home in Muskoka. Understanding these fees will help you budget more accurately. Remember these are additional costs over and above the price of the home/cottage.

How much land transfer tax will you have to pay?
The land transfer tax is a one-time tax levied by your province when you purchase a property. The tax is based on a percentage of the purchase price of the property, and varies from province to province. Some municipalities also charge a land transfer tax (for example, Muskoka).

Have you budgeted for the associated legal costs?
Legal costs cover your lawyer’s fees or, in Quebec, your notary’s fees. These may include:

  • Reviewing the terms of the offer
  • Conducting a title search on the property
  • Registering a new title
  • Obtaining relevant documents, such as surveys and evidence of liens on the property
  • Checking the statement of adjustments for taxes, utility and fuel bills, and other costs that have been pre-paid by the seller at the date of closing

Do you need a home inspection?
A home inspector assesses a property’s condition and can tell you if something is not working properly, needs to be changed, or is unsafe. They may be able to identify where there have been problems in the past, such as a leaking basement or termite damage.

What other costs can you expect?

  • Interest adjustments between date of closing and first mortgage payment
  • GST/HST on a new home or a home that’s been extensively renovated
  • Service charges from utility companies for hook-ups on electricity, gas, internet and telephone services
  • Appraisal fees
  • Moving costs
  • Storage costs if you must leave your current residence before you are able to move into your new home
  • Furniture and appliances
  • Real estate commissions

Now that you have arrived at your destination, it’s time to enjoy your new home or cottage in Lake Of Bays!

 

Read the whole Home / Cottage Buyers’ Road Map Series:

Home / Cottage Buyers’ Road Map Part 1 : Assess Financial Readiness
Home / Cottage Buyers’ Road Map Part 2 : Consider Mortgage Options
Home / Cottage Buyers’ Road Map Part 3 : Mortgage Default Insurance
Home / Cottage Buyers’ Road Map Part 4 : Government Programs / Tax Credits
Home / Cottage Buyers’ Road Map Part 5 : Finding a Home
Home / Cottage Buyers’ Road Map Part 6 : Making an Offer