One of the most common areas I come across in my real estate sales practice is the lack of attention Buyers pay to the total closing costs needed, when purchasing a home or condo.

First time Buyers get a pass on paying attention to this, but everyone else needs to be aware of what added funds will be needed, when they are needed and what exactly constitutes your closing fees.

For starters there are your legal fees and disbursements. These are the fees that cover the cost of your lawyer performing the needed work required to close your new home or condo. Also included are the Lawyers fee for doing the work. Budget between $1,300-$1,600 for the average priced home ($400,000)

PST/HST on CMHC (or other) mortgage insurance. If you are putting less than 20%-25% as a down payment you will need insurance. The insurance amount can be added to the mortgage but the taxes are due on closing. Using a 10% down payment on a $400,000  home, you should budget between $575-950

Land Transfer Tax: There are two taxes in Toronto. Municipal and Provincial. Certain exemptions apply but on a $400,000 home without exemptions budget $8,200

Adjustments. This covers any prepaid property tax, unmetered utility costs (oil in an oil tank), and other charges. This is typically minor in scope, unless the taxes have been paid for the entire year and you as the Buyer, take possession of the home in the first part of the year. Budget $500-$750

You should have these funds ready and available 2-3 days minimum before your close date and to be paid directly to your real estate Lawyer.

If you plan in advance for these added costs, come closing day you should be smooth sailing without any unexpected costs be needed.