These costs are almost always unexpected.

By Ellen Mackay

You save for a down payment and assume this can all be applied to the house you're purchasing.  Wrong! You may be surprised at the variety of other costs that must be paid upfront.

Lawyer Fees
Fees usually range from $600 to $650.  If a law firm quotes a fee of $300 - $350, it hasn't included the cost of executing the mortgage through the financial institution that will hold your mortgage.  If this is the case, expect to pay another $250 to $300 for this service.

Land Transfer Taxes
The amount paid is based on the home's purchase price
--If the purchase price is less than $250,000 the cost is 1% of the purchase price, less $275.
--If the purchase price is $250,000 to $400,000, the cost is 1.5% of the purchase price, less $1,525.
--If the purchase price is over $400,000, the cost is 2% of the purchase price, less $3,525.
  Example: if you purchase a home for $185,000, you pay 1% or $1,850 less $275.

Property Taxes
Check with city hall to see how the taxes are paid within the municipality.  Some communities or cities charge quarterly, some annually and some bill eight times a year.
   For example: If you close on October 1st, the annual taxes are $2,500 and the vendor has already paid the taxes for that year, you would be responsible for paying the vendor the taxes for October, November and December: $2,500 + 12 months equals $208.33 per month.  Multiply by three months and you owe $624.99

Water Bill
Some cities charge a flat rate every six months.  Other municipalities charge for usage and houses have meters.
  Let's assume October 1st is your closing date and the city has a flat rate; you are responsible for water charges for three months.

Search Of Title
There are two types of search of title:
1) Land Registry - usually for older homes entails conducting a 40 year search on the property.
2) Land Title - simply registers the title back to the vendor.  The Registry system is more expensive.  Budget approximately $100.

Disbursements
There are various municipal disbursements that must be paid on closing.  Some approximate costs:
a) Tax Certificate: $25    
b) Building Clearance: $70
c) Water: $20                 
d) Hydro: $20
e) Consumers Gas $10.70
If your lawyer finds that there are outstanding balances for hydro and water, it is considered to be a lien against the property.  The amount(s) will be deducted from the monies the vendor receives from the dale of the house.  Outstanding Consumers Gas bills will not result in a lien being placed against the property.  Consumers Gas will pursue the previous tenant or owner.

Registration Of The Deed and Mortgage(s)
Each of these costs $50 per document.  If the home you purchase has two mortgages, you pay $50 for the deed, plus $100 for the mortgages.

Miscellaneous Charges
These charges include all additional costs that the lawyer incurs while working on your behalf.  Example: you are charged for faxes, courier service, photocopies and long distance phone bills.  Budget approximately $50.
   Let's assume a home, purchased in Toronto, is closing on October 1st: Purchase price: $185,000  Taxes: $2,500 a year