All you need to know about Ottawa closing costs

In a new purchase of the home, there levy’s closing costs that are charged additional on the home including the expenses of legal and administrative works dealing with the completion of the mortgage deal.

On average 5% of the costs are calculated as a buffer on the price of the home depending on the type of the home itself.

Here are the closing costs that one must pay.

1. GST: The tax here applies to the new homes. One can surely avail provincial and federal rebates.

2. Survey: if suppose the house is for a single-family, a survey certificate must be provided to the lender showing that the property lies within the property lines.

3. Title insurance: the buyers must purchase the title insurance to protect against losses due to disputes in the property ownership.

4. Interest adjustment: one must pay interest on the type of gap between the first mortgage payment date and the closing date.

5. Land transfer tax: it is one of the largest taxes paid in a single time as a charge by the purchaser when the property is transferred from a seller to a purchaser applicable for resale properties.

6. Legal fees: a charge paid to a lawyer for the conveyance title and the mortgage.

7. Home inspection: the charge for the physical check-up of the structural integrity of the home taken by the professional for testing the safety of the design.

8. Property tax: the municipalities impose this charge on the home where you live for the maintenance of the street and cleaning of the garbage from the living area.

9. Home insurance: a house owner must always take up this to protect from the risks of fire or theft.

Final verdict

Most of the charges can be avoided if you are a first-time buyer as there are rebates. While the buyer has to take up the purchase with all these charges, a seller only has to pay a commission to the selling and buying agent.

So before buying a house consider the Ottawa closing costs as they come up additional. Now isn’t a time where buying a property is easier, you must certainly know about the hidden and additional charges that a house comes with. Hence make a prominent choice and carefully pay the additional charges with the advice and guidance of a real estate lawyer at each step of the closing date of the mortgage agreement you are associated with.