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 Melanie Erickson


P: 250-627-9463
E: melanie@
rupertrealty.ca

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Closing
What does the term closing mean?
Closing refers to the preparation for the transfer of ownership of a property from the seller to the buyer.

There is no standard method for closing. In some places, "round table" closings bring all parties together at the closing table. In other areas, buyers and sellers complete the process through separate, individual appointments with their lawyer.

Your Royal LePage Realtor will tell you what is customary in your area and help lead you through the process.

Closing Day

What happens on closing day?
Closing day is the day you become the official owner of your home.

Typically, you visit your lawyer's office to review and sign documents relating to the mortgage, the property you are buying, the ownership of the property, and the conditions of the purchase. Your lawyer will also ask you to bring a certified cheque to cover the closing costs and any other outstanding costs.

Once the mortgage and the deed for the property are officially recorded, you become the official owner of the property and your lawyer will call you to pick up the keys to your new home.

Congratulations! You've just bought a home!
Expense Paid

Estimate the full cost of your home with the Closing Cost Estimator.

Land Transfer Tax

Purchasers in most large Canadian centres can add Land Transfer Taxes to their list of closing costs. Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, Land Transfer Taxes (or property purchase taxes) are a basic fact of life.

Land Transfer Taxes, levied on properties changing hands, are the responsibility of the purchaser. Depending on where you live, the taxes can range from 0.5% to 2% of the total value of the property.

Many provinces have multi-tiered taxation systems and these can be complicated. If you purchase a property for $260,000 in Ontario, for example, 0.5% is charged on the first $55,000; 1% is charged on $55,000 to $250,000, and 1.5% is charged on $250,000 to $400,000.

Use the Land Transfer Tax Calculator to estimate the land transfer tax for your new property.

Land Transfer Taxes by province:

British Columbia
Property Purchase Tax
Up to $200,000 X 1% of total property value
From $200,000 up X 2% of total property value

Costs

When you buy a home, you will be asked for a down payment, usually between 5 and 25% of the total price of the property. You might also have a number of other fees and expenses to pay.

Some of the most common expenses are listed below. These expenses may vary, depending on your area:

Expense Paid Mortgage application and appraisal fee At time of application House inspection (optional) At time of application Legal fees Closing Legal disbursements Closing Deed and/or mortgage registration Closing Property survey (sometimes provided by the seller) Closing Land Transfer Taxes by province Closing Property tax adjustments Closing Fuel adjustments Closing Mortgage insurance Closing Title insurance Closing