Posted 12.14.12 @ 10:15
So you’re buying or selling Oakville real estate and you’ve made it almost all the way to the end… but now you’re looking at closing costs. Everything’s negotiable though right? Probably not! Most of your closing costs won’t be negotiable but a few will. You’re going to really need a solid understanding of how they break down so you can understand what’s vital and what’s superfluous. You’ll want to work with us AND an Oakville real estate attorney to get the best deal.
Fees Are Different Each Time You Buy
Whenever you buy or sell your closing costs are going to be different each time. It’ll really come down to the kind of property you’re buying and how you’re purchasing it (cash, financing, etc.) and even the time of year can affect how much you pay. Here are some of the fees you can expect when buying or selling a home:
Legal Fees: You’re going to need the help of a lawyer or attorney to make sure that your interests are protected. Just because the other side has a lawyer doesn’t mean you’re covered!
Land Transfer Taxes: Oakville real estate isn’t as expensive as Toronto real estate in this regard luckily! You will have to pay around 1-3% of the price for the property for this fee depending on the kind of property you’re buying.
Property Taxes: A lot of taxes are part of your closing costs and property taxes aren’t something you can avoid! If you’re buying you could be on the hook for this quarter, next quarter or something in between. You’ll want to check with your lawyer to break this down.
Title Insurance: There are two kinds of title insurance – the kind that covers your lender (mandatory) and the kind that covers you. We suggest you invest in both for total protection!
How Much Will You Have to Pay?
It’s good to have 5% of the purchase price set aside for closing costs, liquid in your bank account where you can get at it! You probably won’t even need this much when you’re buying Oakville real estate but it never hurts to be prepared in case there’s some kind of issue. A week before closing is scheduled you’ll need to talk to your mortgage lender and see what the costs will be; if you can’t get an answer out of them closing may have to be postponed.
Once you know how much you’ll need to close your home, you’ll want to get the amount in a cashier’s cheque – the lawyer’s office will not accept cash or a personal cheque, so make sure you have the appropriate form of payment! You’ll usually be able to find out how much the exact amount is a day or two before the home closes, so don’t worry if you can’t get it sooner.
If you’d like to learn more about closing costs and Oakville real estate, let us help!