A Complete Calculation of Closing Costs When Selling a Home

The closing cost to sell a property in Ontario is similar to that of a home buyer who must pay a hefty number of closing charges. Let's go through the specifics of selling a property in Toronto's closing fees.


Renovations and Home Staging

Home staging may help you sell your home faster and for more money, but it costs around $3000 on average.You may also need to perform some modest repairs or upgrades. The cost varies, but the majority of the investment in improvements may not be recouped.

Mortgage Interest Penalty

If you have a mortgage on your existing home, you will almost certainly be required to pay a penalty to your lender. The cost is determined by several factors, including your signing date, contract terms, mortgage balance, mortgage rate, and interest kind (fixed or variable). Normally, the cost is three months' interest.


Home Examination

A house inspection is frequently a criterion for home purchasers. However, there are some advantages to having it done before listing.For example, it may discover previously identified housing concerns that must be either addressed or revealed. It may reassure the buyer about the home's condition and boost the buyer's chances of bidding.The applicable cost is between $300 and $500. Status Certificate If your property is a condo, you should get a status certificate for $100 before marketing it. It provides similar benefits to a house inspection, albeit in many circumstances, the buyer is responsible for the cost of the status certificate.


Commission The vendor must pay a significant portion of the commission. It is determined on the listing choice you select.Typically, it varies from 3% to 5% of the home's selling price, in total, for both the listing and buyer agents.Some sellers would prefer to negotiate a very cheap realtor charge with the listing agency, however in GTA, the commission to the buyer agent is often about 2% to 2.5 %.

Legal fees for real estate transactions You will need the assistance of a lawyer to conclude the closing with the buyer's lawyer. It costs you roughly $800, despite the fact that it is generally less than that of a buyer.

The Capital Gains Tax If you are a non-resident, as defined by the CRA, you must pay the necessary tax and get evidence from the CRA. Otherwise, the buyer's lawyer will keep 25% of the transaction price.

Adjustment for Closing Property tax and utility bills will be divided equally on closing day, based on whether you prepaid or accrued.

The cost of repairs or replacements The house buyer may suggest that you make repairs or replacements following the home inspection, or they may ask you to reimburse those projected costs.

Moving expenses The cost varies greatly depending on whether you hire a business or do it yourself.

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