Land Transfer Tax
One such cost is the tax associated with the transfer of the property, which needs to be paid on closing. The tax you will be required to pay is 1% of the higher of the assessed value (for provincial property tax purposes) and the actual purchase price.
However, there are some situations where this tax does not need to be paid, referred to as exemptions. Examples include where real property is transferred to a registered charity; or where marital property is transferred by a married person to his spouse, or by a married person to himself and his spouse.
Your lawyer will be able to assist you in determining whether you qualify for an exemption.
Title Insurance or Survey
Another cost associated with purchasing a home is title insurance or a survey. If you are going to have a mortgage on the property, your lender will require either title insurance or an up-to-date survey. Note that some lending institutions only accept title insurance. The actual cost of title insurance will depend upon the purchase price. In comparison to title insurance, a survey is more expensive but has advantages: it will show features such as any survey markers found, distance from the foundation to the limits of the lot and any encroachments.
Due to the high volume of property transactions conducted here at McMath Law we receive a discounted rate when we purchase title insurance, which savings we are happy to pass along to our clients.
For more information relating to the costs that are associated with purchasing a home, please do not hesitate to contact our office.
Stephanie Rushton, Student-at-Law