Closing Costs Explained: What First-Time Buyers Pay for a Resale Home in Stouffville and York Region
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You've saved for your down payment. You've been approved for a mortgage. You've found the house. But there's one more number that can catch almost every first-time buyer off guard: closing costs.
Closing costs are the fees, taxes, and adjustments associated with completing your purchase, separate from your down payment. The exact amount varies depending on the purchase price, property type, mortgage, and other factors.
For a $900,000 resale home in Stouffville or Markham, you'll want to have additional cash available beyond your down payment. Here's what typically makes up those costs.
Land Transfer Tax: Your Biggest Line Item
In Ontario, Land Transfer Tax (LTT) is calculated using a marginal, bracketed system based on the purchase price.
Because Stouffville, Markham, and Uxbridge are in York Region and outside the City of Toronto, you pay Ontario's provincial Land Transfer Tax only. You do not pay Toronto's additional Municipal Land Transfer Tax.
If you're a first-time homebuyer, Ontario provides a rebate of up to $4,000 toward your provincial Land Transfer Tax.
For a $900,000 purchase, the provincial Land Transfer Tax is $14,475 before the first-time buyer rebate. If you qualify for the full $4,000 rebate, your net Land Transfer Tax would be:
Provincial Land Transfer Tax: $14,475
First-time buyer rebate: −$4,000
Land Transfer Tax after rebate: $10,475
To generally qualify for Ontario's first-time homebuyer rebate, you must:
Be at least 18 years old
Occupy the home as your principal residence within nine months of closing
Never have owned a home anywhere in the world
If you have a spouse, your spouse must also meet the applicable first-time buyer requirements while you are married
The rules can be more specific depending on your circumstances, so it's important to confirm your eligibility.
Legal Fees
You'll need a real estate lawyer to complete the transaction. Your lawyer typically handles tasks such as reviewing the agreement, conducting title searches, registering the deed and mortgage, and disbursing funds.
For a resale home, a reasonable starting budget might be $1,500 to $2,500 for legal fees and disbursements, although the actual amount varies by lawyer and transaction.
Title Insurance
Title insurance is usually arranged through your lawyer and protects against certain title-related risks, such as fraud, existing liens, or other issues that may affect your ownership.
It's generally a one-time cost of a few hundred dollars, depending on the property and policy.
Home Inspection
A home inspection isn't technically a closing cost because it's usually paid before the transaction becomes firm. However, it's an important part of your overall home-buying budget.
For a resale home, a professional inspection can help identify potential issues before you finalize your purchase.
In York Region, you might budget approximately $400 to $700, depending on the property and scope of the inspection.
Property Tax Adjustments
If the seller has already prepaid property taxes beyond your closing date, you may need to reimburse the seller for the portion that applies to your ownership period.
This is typically shown as an adjustment on your lawyer's Statement of Adjustments, rather than as a separate bill you pay directly to the municipality.
The amount can vary significantly depending on the property, tax cycle, and closing date.
Mortgage-Related Costs
Depending on your lender and mortgage, there may be additional costs such as:
Appraisal fees
Mortgage default insurance, if applicable
Mortgage broker fees, depending on the arrangement
Other lender-related charges
Your lender or mortgage broker should explain which costs apply to your specific mortgage before closing.
One important point: if mortgage default insurance applies, the insurance premium is generally added to the mortgage, but the applicable provincial sales tax on the premium is payable at closing.
Moving Costs
Moving costs aren't technically closing costs, but they're another expense that often arrives around the same time.
Think about:
Movers or truck rental
Cleaning
Utility setup
Locksmith services
Minor repairs or immediate purchases for the home
It's worth leaving some room in your budget rather than using every available dollar for the down payment and closing costs.
A Quick Example: Buying a $900,000 Resale Home
Let's say you're buying a $900,000 resale detached home in Stouffville as a first-time buyer.
Here's a simplified example:
Land Transfer Tax before rebate: $14,475
First-time buyer rebate: −$4,000
Land Transfer Tax after rebate: $10,475
Legal fees and disbursements: ~$2,000
Title insurance: ~$400
Home inspection: ~$550
That's approximately $13,425 before property tax adjustments, mortgage-related costs, and moving expenses.
And that's why your down payment shouldn't be the only number you plan around.
What About HST?
For a typical resale home, HST is generally not an additional purchase cost in the same way it can be with a newly built home.
That's one of the important differences between buying a resale property and buying a new construction property. If you're considering a new build, the HST treatment and available rebates can be very different, so make sure you understand what is included in the purchase price and what rebates may apply.
The Bottom Line: Closing Costs Explained: What First-Time Buyers Pay for a Resale Home
Closing costs can catch first-time buyers off guard because they're spread across several different expenses and paid around the same time.
The solution isn't complicated. Plan for them early, using real numbers rather than a rough percentage.
If you're considering a resale home in Stouffville, Markham, Uxbridge, or elsewhere in York Region, understanding your total cash requirement before writing an offer can make the home-buying process much more predictable.
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This article is for general informational purposes and is not intended as legal, financial, mortgage, insurance, or home inspection advice.
— Hoejin Homes | Helping people find homes that support a fulfilling life.
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