Closing Costs When Purchasing a Home

Closing Costs When Purchasing a Home

Before you can get your keys to your new home there are many costs associated with the purchase.  When you see an ad for a home which shows the asking price, that is not the total amount you will be expected to pay.  When thinking of purchasing a home you will have to take these costs into consideration.  Here is a breakdown of all the closing costs you will be expected to pay, most are one-time fees.

Property Survey

A property survey basically outlines property boundaries and setbacks.  It will show any easements on the property, it will show if there are any shared driveways or any structures that are overhanging on the particular property.  Some lenders will require you to provide an up to date survey.  You can ask the homeowner if they have a copy of a survey, if they don’t you will have to pay as a buyer to get a survey for the property. Approximate cost for a land survey depends on the size and type of property which can vary.  $200-$800

Home Inspection

When making an offer to purchase a home its always a good idea to get a reputable home inspector to assess the home.  A home inspection will determine if there are any minor or major issues with the home that need to be fixed.  If you find problems with the home, you will be able to walk away from the deal.  It is not mandatory to get a home inspection; the costs will be subject to the buyer of a home.  Approximate cost of a home inspection is $300-$650+depending on the type and size of the home.

Title Insurance

In some cases, your lawyer will recommend you acquire title insurance on your property.  This insurance is optional and will protect you from any problems in the title of your home in the future.  This means if there ever is a dispute over any part of your property such as title fraud, municipal work orders and zoning violations. Approximate cost for title insurance is $250-$400.

Property Insurance

All lenders will require you to get fire insurance for the home you wish to purchase.  Before they send any funds, they will require proof that the home will be insured on closing day.  Approximate insurance rates per month range around $50-$200 per month depending of the value and size of the home.

Mortgage life, critical illness, disability or job loss insurance (optional)

When setting up your mortgage you can consider getting insurance if for any reason you are injured somehow and are not able to work and produce an income.  This will protect you to cover the costs of your mortgage while you are ill or disabled. 

Land Transfer Tax

When any property in Ontario is bought and sold, when the title of that property is transferred there is a Land Transfer Tax payable to the government (certain situations don’t require a tax).  If you live in Toronto, you will be subject to an extra municipal tax.  If you are a first-time home buyer, you can qualify for a rebate from the government after paying this tax.  To find out how to apply for the rebate go here.  Approximate cost for this tax vary on the purchase price of your home, you can use a land transfer tax calculator here.


Newly constructed and substantially renovated homes may be subject to GST or HST. If you pay GST and HST, you may qualify for a new housing rebate.  For more information about the rebate go here.

Canadian Mortgage and Housing Corporation Insurance

In Ontario if you have less than a 20% down payment, you will be subject to mortgage insurance.  This is to protect the lender in case you default on your mortgage.  This premium is added to your monthly mortgage payment.  This premium depend son many factors which you can see here.

Utility payments, Property Taxes and Condo Fees

Sometimes the owner that you are buying the house from has prepaid their property taxes or condo fees for the whole year.  When you purchase the home, you will have to reimburse the seller for the amount that they had prepaid already. 

Legal Fees

When buying or selling a home the buyer and the seller must obtain a lawyer to handle the closing process. They handle title searches, utility searches and any problems that may arise through the process of buying or selling a home.  The lawyer’s legal fees and disbursements are subject to GST or HST and range from $600-$2000 depending on how complex the transaction may be.

Before starting your home search, it is very important to be aware of all the closing costs involved when buying or selling a home.  Contact me for further guidance. 

Kris Vindbergs

Realtor with Century 21 Heritage Group


Should I Get The Home I Want To Purchase Get Inspected Before Buying?

Should I Get The Home I Want To Purchase Get Inspected Before Buying?

Buying a home is usually the biggest financial decision anyone is going to ever make in their lifetime.  When you buy almost anything from a store or online you would expect that there will be a warranty that comes with that product.  When making a large purchase such as a home, it only makes sense to have peace of mind that there won’t be any major problems with it after you move in.  Therefore, it’s extremely important to get a home inspection before deciding to put an offer for that house you are wanting to purchase (or having your real estate agent put in a clause on an offer, which would not make the offer binding unless you are satisfied with the results of the inspection)  This will protect you incase there are any issues with the house, and you do not want to put money into fixing them.  As of the day this article was written there is not much regulation in the industry.  And beware that some problems may not be detected in a home inspection that may arise in the future.

How To Choose A Credible Home Inspector?

There are many home inspectors out there to choose from.  They all offer slightly different services and vary in how thorough they are in their inspections.  As a rule you get what you pay for, if a certain company or individual is charging ½ the price as compared to everyone else I would be skeptical in the quality of their work.  After all this will most likely be your biggest purchase in your life, major problems that an inspector might miss can possibly cost you tens of thousands of dollars in the future.  Unfortunately, at this time Ontario requires no licensed for inspectors, however the government is currently working on implementing regulations.  However there is an organization called the Ontario Association of Home Inspectors, this organization is dedicated to enhancing professional practice and technical skills of home inspectors.  Members of this organization are held to high standards of practice and must obey a code of ethics.  These members have a designation as a “Registered Home Inspector” It is recommended to get a building inspector that is a member of this organization.        

What Is Inspected In A Home Inspection?

Home Inspections include almost all areas in a home or condominium.  The inspector will do a thorough walk through of your home and check for any problems that could be present.  The inspection will include:

Plumbing – Plumbing pipes, fixtures, hot water tanks, shutoff valves, drains and vent pipes

HVAC – Air Ducts, A/C, Furnace, heat exchangers, humidifier, venting, filter and registers

Electrical – Panels, wiring, outlets, fixtures, electical service, some detectors and grounding

Roofing – Gutters, downspouts, chimneys, flashings, skylights and leaks

Attic – Insulation, ventilation, roof frame, moisture levels, pipes, flashings and leaks

Exterior and Structure – Exterior receptacles, gas meter/piping, windows, doors, foundation, exterior wall coverings and columns

Site Grounds and Grading – Fences and gates, patios, decks, window wells, sidewalks, driveways, retaining walls, grading, and trees

Interior – Stairs, floors, walls, leaks, ceilings, fireplaces, skylights, windows, and doors.

Basement – Foundation, floor joists, sub flooring, leaks, sump pumps, moisture/mildew, mold, ventilation, foundation, columns and insulation

Garage – Flooring, walls, roof, windows, door opener, door, moisture/mildew and recepticles

Thermal Imaging/Infra-Red – Windows, doors and interior walls and ceilings

Costs for Home Inspections

Cost will vary depending on the company you decide to hire and the type and size of your home.  A condo apartment will usually have the least cost to inspect as it is usually the smallest type of home and will only need an indoor inspection.  Generally the higher the square footage of your home the higher cost it is to inspect.  Prices vary $350-$600+ depending on the thoroughness of the inspections.

What an Inspector Might Miss

Certain issues with your home are hidden and won’t be able to get detected.  The inspector might not do a thorough inspection and might have lacking detailed information in the report.  Some inspectors won’t go on top of your roof to inspect the roof as this requires some risk and extra effort to get on top.  Some will not get into very tight locations such as attics or crawl spaces.  There could be hidden electrical issues, structural issues, failing HVAC equipment, leaks and partially blocked sewer lines which most likely won’t be able to get detected.   Some inspectors lack any training whatsoever, so this would mean they are not knowledgeable as to what problems to look for and to diagnose.  Before hiring a home inspector before buying or selling your home, do your research to see what type of credentials they have, and look for reviews online to see what kind of experiences other people had with them.

How an Inspection Can Hurt You

If a seller gets multiple offers for their home, usually they would prefer to accept the offer with the least amount of conditions.  This means that if you want the property inspected and the other competing buyer does not, then the seller will most likely accept the other buyers offer because this will make their life easier by not having to have you, your real estate agent and inspector come into their home for a few hours. 

Remember before hiring or thinking about hiring a home inspector do your due diligence.

Kris Vindbergs

Realtor with Century 21 Heritage Group


Should I Sell My Home Before Buying A New One?  Or should I Buy A Home Before Selling?

Should I Sell My Home Before Buying A New One? Or should I Buy A Home Before Selling?

If you are in the market to sell your home and want to relocate, you might be thinking if putting your home on the market first or buying a home first will be the right choice.  This will depend on everyone’s financial situation and risk tolerance.  There are many ways to go about selling and buying your home.

First you will need to be aware of what will happen if you buy a house before you sell your existing one.

Getting approved for a second mortgage

Most people might have a hard time carrying two mortgages at the same time.  This would mean applying to a lender for a second mortgage, lenders will take your income, your debts, your assets, any car payments and other factors into consideration before lending you money.  Having equity in your existing home will not automatically get you approved for a second mortgage.  Getting a second mortgage usually requires you to produce a much higher down payment compared to a first mortgage, this could mean having to come up with a 20% down payment.  Your income is usually the largest overall factor mortgage lenders look at.  They will determine if you are able to afford the extra monthly payments.  If you don’t meet their guidelines for a second mortgage, you will be out of luck.

Making an offer on a home with conditions

Depending on the current market, some sellers might accept an offer for purchase and sale with a condition that your home must be sold before the offer for the second home will be binding.  This would mean that there won’t be any risk as the offer for purchase won’t happen unless your existing home gets sold.  This is very a common condition that will be accepted in a down market, as there usually won’t be any competing offers for the home you are trying to buy.  But keep in mind if the seller gets multiple offers for their home, they will accept the offer with the least conditions because they would have no reason to care for your conditions in the offer.

Selling your home before buying a new one

This is usually the best and most practical choice for most people.  The vast majority of people don’t have hundreds of thousands of dollars in the bank or investments to pull out and purchase a new home.  However, there are a few things to keep in mind before selling your home first.  It is possible that your home will sell before you are able to purchase a new home.  This could mean that you could be homeless for a little while, you will need to find a temporary place to stay.  If you don’t have a friends or family members house to stay at, hotels can be really expensive to stay in.  This could mean having to store all your belongings in a storage facility, which will require you to rent or hire a moving company twice instead of once.

Selling your house before buying a new one will reduce your stress level as you won’t have to think about what if your current home doesn’t sell in time and that you might have to juggle two mortgages.  Buying a home first means that time will be on your side, you will be able to find that perfect home in the right location with all the features you want without having to rush through the process and settling for a home that may not be ideal for you.  Purchasing a home will be most peoples biggest financial decisions in their lives, its better to not rush going through this process.

I will recommend talking to your real estate agent and mortgage lender before making any decision yourself.  As a real estate agent I will be able to advise you on how the current real estate market is doing and how long it would be expected to sell your current home as well with any possible risks you would face in the process.

Kris Vindbergs

Realtor with Century 21 Heritage Group


Is Your Toronto Basement Apartment Legal?

Is Your Toronto Basement Apartment Legal?


You might have heard some way or another over the years about issues with people renting or living in “illegal” basement apartments.  To many people this issue will not affect them during their lifetime, whether they are tenants in a basement apartment, or are landlords renting out a basement apartment.  That is until god forbid a fire or flood happens in the home.  This is where its important to be aware of all the factors involved with basement apartments in Toronto and surrounding areas.

Almost any area in Toronto and surrounding areas have homes with either rooms or basements rented out to tenants.  When people don’t use their basement, it can be a waste of space for some so they decide to rent it out to receive an income to help pay for their mortgage or utility payments.  In todays housing market this can be a very good idea, and could enable you to afford that larger home you always wanted.

There are many terms associated with a rented basement apartment such as:

  • Dwelling Unit
  • Second Suite
  • Two-Unit house
  • Granny Flat
  • Auxillary apartment

What conditions must be met for the basement apartment to be considered legal?

  1. It must follow local Bylaws
  2. It passes Fire Code Inspection
  3. It passes Electrical safety requirements
  4. The unit is registered with the municipality

If you are thinking about buying a home with a basement apartment, these are requirements you will need to confirm are met in the particular home.

Studies have shown that about 80% of all rented basement apartments in Toronto Ontario are considered illegal. 

Before buying a home ask your Realtor to see if the basement apartment is legal and request an inspection to confirm the status.

What a basement apartment needs:

The requirements for a basement apartment will depend on your location. There are a few rules that apply:

  • Bathrooms require an exhaust fan and a window
  • Basement apartment ceilings must me minimum 6 feet 5 inches
  • Doors needs to be 32 inches by 78 inches

You will need to contact your local city hall to find out all the requirements needed for your dwelling unit to be up to code.

-The basement apartment needs to conform with Zoning Bylaws in your town or city

– A building permit must me acquired with the city

– A Fire inspection must be completed

– An Electrical Safety inspection must be completed

Inspection for fire code compliance cost around $120 to $300.  Inspections for electrical safety cost around $80 to $300.

Why should you be worried if your basement is considered illegal?

In 2013, a young woman in Toronto was killed when her boyfriend could not rescue her from the couple’s burning basement apartment. Two years later, the owner of the illegal rooming house was found guilty of multiple fire code violations and fined $75,000. He was also given 18 months probation with conditions including not possessing or managing a rental property.  This was an unfortunate situation that happened, of course it is extremely rare however it is in everyone’s best interest to protect themselves if anything like this ever happens.

If a home owner does not disclose to their home insurance company that they have a rented basement apartment, they could be fined or can loose their home insurance all together.  And those who are living in illegal basement apartments won’t be able to get renters insurance for their belongings.

These fines can range from $500 to $5000, and can be increased if people are caught not complying with orders.

Any tenant may make a request to the city for the basement apartment to get inspected.  Getting caught with an illegal apartment could result in you having to transform the home back into a single family dwelling, and can result in you having to legalize the apartment which can take a lot of time and money to do.

Buying a home with an illegal basement apartment

Many MLS listings with a basement apartment that is not legal will show the term: “Seller and sellers agent do not warrant the retrofit of the basement apartment”.  This means the seller and sellers agent are aware that the basement apartment is not registered and are doing their due diligence to inform any potential buyer that the apartment is not legal.  Before buying a home make sure to do your homework and ask questions.

Creating a new second suite

If you are considering doing renovations and making a basement apartment there are many requirements that must be met and they slightly vary by every municipality.

  • The principal residence must be at least 5 years old
  • The house must be detached or semi-detached (there are some additional rules and exceptions for rowhouses)
  • The exterior facade of the house cannot be significiantly altered
  • The second suite must be smaller than the rest of the house and be self-contained with its own kitchen, bathroom and entrance
  • The property must meet parking requirements (except in the former city of Toronto, where they recognize the limited parking available)

If there’s a small discrepancy in any of the above requirements, you may be able to apply to the Committee of Adjustments for a minor variance (in other words, exception) – but note this will take time and likely cost money

Before making any decisions its always wise to ask your Realtor questions and do your due diligence to protect yourself, so you don’t face any problems in the future.

Kris Vindbergs

Realtor with Century 21 Heritage Group


Buying Or Selling A House During The Christmas Holidays, Is It A Good Idea?

Buying Or Selling A House During The Christmas Holidays, Is It A Good Idea?

Christmas time is when people are focused on running around buying gifts for friends and family.  Planning a getaway, figuring out where they will be staying to celebrate Christmas, or trying to get extra vacation time off work to spend more time with loved ones.  Most people aren’t thinking about buying or selling their home around Christmas.  There are many advantages and disadvantages to selling or buying a home during this time.


This holiday season can be a great opportunity to find a great deal on the right home.  During the holidays the Toronto real estate market slows down.  This means that the inventory is usually low, as there are less homes on the market.  This means there is less competition in the market. This is a time you can get a bargain on a home which a seller might accept a lowball offer, as they will be pressured to sell as there will be much less interest for their property.  This can be a time to negotiate a quick closing time frame as they might want to complete the sale before the new year.    Sellers understand that the Christmas holidays aren’t the ideal time to sell their home, so to compensate for that they might put up their home below market value.  This could equal to getting a much lower price for the home as opposed to waiting a month or two to purchase.


On the flip side of things as a seller, things can turn out in their favour.  At this time there are less houses on the market, less supply may equal to less competition from other sellers in your neighbourhood.  During Christmas time there are far more serious buyers looking as they want to move in before the new year and have the transaction completed quickly, and are not just window shopping.  Another advantage could be the high amount of travelers coming to Toronto during the Christmas holidays that are looking for homes for sale.  They might be planning to move here and could be house hunting during the holidays.  Many people will be planning to move before the new year due to change of job location, study placement or change of scenery.  There are many different factors in peoples reasoning to buying real estate during Christmas time.


Also take into account many businesses and professionals aren’t working during the Christmas holidays.  Lawyers, real estate agents, mortgage brokers and building inspectors might be hard to get ahold of during this time, which can make your house buying or selling efforts a little more difficult.  It might be difficult to schedule showings for houses as people will be busy with spending time with friends and family and might not want to be inconvenienced to leave their home.  As a buyer this time of year you may not be able to find a home to buy that will meet your needs and wants.  Due to the shortage in inventory so your options could be limited.  If you are in a rush to buy a home within this period you might have to settle for a less than ideal home for yourself which you might regret later on.

MLS New Listings

Note the decline in new home listings on the MLS every December

These factors will make the process of buying or selling a home in Toronto and surrounding areas a little more challenging as compared to other times of the year.  The Toronto Real Estate Board has statistics updated every month of the year.

As a real estate agent it is my duty to protect my clients best interests and inform them of all the positives and negatives to selling a home during the Christmas holiday season.  Ofcourse everybody’s personal situations are different, selling or buying during Christmas time can work out in your favour or it might not.  Before making a decision think of the positives and negatives for buying or selling your home during this time of year.  Ask me how the market is doing and I will let you know if it is an ideal time to buy or sell your home.  The best decision in an informed decision.

Kris Vindbergs

Realtor with Century 21 Heritage Group