All the Costs Involved When Selling Your Ontario HomeIn the real estate market many assume that only buyers are faced with costs. However, there are also expenses involved when you put your home up for sale and they are called closing costs. If you are a first time homeowner in Ontario and you are thinking about selling your property then you will benefit from knowing all the costs involved.
Before you pass the house to its new owner, you need to pay all your property costs. In municipalities usually the property tax is paid either annually or twice a year, so make sure that you are up to date. If you live in a condominium than you have to make sure that all the maintenance fees are paid before the closing date and also if you have any liens on your property and other underpaid taxes.
There is a $270 fee for mortgages that are not paid off prior to selling your home. However, if you have a closed mortgage, then you may be required to pay prepayment charges (based on the interest rate and the number of years left to pay). On the other hand if the price of your new home is comparable then the bank may allow you to transfer your mortgage to the new house.
Legal Fees and Taxes
When selling your home you will also need to pay registration fees and lawyer’s fees. Lawyer’s fees can cost up to $500, and an additional $200 for associated expenses. Also if you earned money from your home, for example if you received rent, then you will also have to pay a capital gains tax to the government.
These are all the costs involved while still living in your home until the closing date. These costs include property taxes, condominium maintenance fees, and the cost of utilities. If you have set up prepaid payments for your utilities, you can ask the buyer to reimburse you for any unused amount for the month. There is also the possibility that you may have to pay to have your utilities (telephone, heating, cable TV, electrical and water services) disconnected and transferred over to your new home. Real
You will not encounter the cost of real estate commission if you decide to sell your home on your own. However, it is advisable to work with a real estate agent, since they have all the resources and you will probably sell your home much faster. Agents usually charge from 3% to 7% of the home’s selling price. This percentage is split between your agent and the buyer’s agent.
Moving costs can add up quickly which include the cost of the; moving company (if you are using one), storage space that you are renting out, boxes (buying or renting), and moving insurance.
Land Transfer Tax
If you purchase land in Ontario then you are obligated to pay the Land Transfer Tax (based on the amount the property sold for, the amount owed on the mortgage and any other debt relating to the land purchase agreement).
Now that you know of all the costs involved when selling your home, you can better plan out your budget and if you work with the right agent they will further help you in identifying all these costs and sell your home in no time.