Closing Cost Calculator for Home Buyers - REW
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Closing Cost Calculator

Need to calculate the closing cost for a house? Try our Closing cost calculator for buyers.
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REW's Closing Cost Calculator

A lot goes into buying a home — several steps and much of your hard-earned money. The last thing you want is to pay more out of pocket than you anticipated. This is where REW's closing cost calculator comes in. Most cost calculators focus on mortgage payments and how much you can expect to pay monthly depending on the price of your home, the down payment, and the amortization and mortgage rate. While these calculators are necessary and beneficial, they typically leave out additional closing costs that can add up and catch some homebuyers off guard.

What are Closing Costs & Who Pays it?

The closing costs when buying a house are various fees added to the home's purchase price, which can be mistakenly forgotten by homebuyers. Some closing costs are partially paid by the seller — it depends on your location and the province's guidelines.

REW has a closing cost calculator that estimates these additional closing costs. All you need to do is enter the following:

  • Listing price of the home you're looking at
  • Down payment you intend to make
  • Mortgage rate you've settled on
  • Province where the home is located

Once you put in this information, REW's closing costs calculator lists what you can expect to pay and totals them for you.

How is closing cost calculated?

The closing costs are calculated by adding the various closing cost fees and expenses to your overall payment. Here's a typical list of what's included in the closing costs for buyers:

Land Transfer Tax: Depending on the province, you'll most likely be paying a land transfer tax. The amount is calculated based on the purchase price.

Municipal Tax: If you're purchasing a home in the Greater Toronto Area, you'll also have to pay a city land transfer tax.

Real Estate Lawyer Costs: Lawyers play an important role in preparing and recording official documents for home purchases. They can range depending on the real estate lawyer you choose.

Property Insurance: This insurance must be purchased before a lender will advance a mortgage. It protects from things like fires or natural disasters.

Title Insurance: Title insurance is a requirement to protect both the buyer and lender from things like title fraud, zoning violations, or property defects.

Appraisal Fees: A mortgage lender often orders an appraisal to estimate the property value. The cost depends on the location and size of the property, as well as how much it's worth.

Tax on CMHC Insurance: CMHC insurance is required if you put up less than 20% as a down payment. You can add the insurance to your mortgage but must pay the provincial taxes.

First-Time Home Buyer Credit: If this is your first time buying a home, the good news is that first-time home buyer closing costs are lower. First-time buyers are eligible for a credit of $4,000.

Other Costs: Other closing costs when buying a house in Canada include a home inspection, property taxes, a new home warranty, or a new hydro account.

Buying a home or property is a big and exciting step, whether it's your first time or you've done it before. You want to stay within your budget and have no hidden surprises. REW's closing cost calculator can help you with just that.

Closing Cost FAQs

What are closing costs?
Closing costs are expenses to consider when purchasing a home that go beyond the down payment and deposit funds required to buy a property.
What is included in closing costs?
Closing costs can include lawyer fees, property transfer fees (in certain provinces), title insurance, and moving expenses.
How much do I budget for closing costs?
You should budget between 1.5% - 5% of the property value for your total closing costs. The total amount will vary based on the location of your purchase. Use our calculators and speak to your REW Money mortgage partner to estimate your closing costs.
How much are closing costs in Ontario?
Closing costs in Ontario usually range from 2% to 4% of the property value. This final amount includes land transfer costs, title insurance, lawyer fees, home insurance, and potentially home inspection or appraisal costs.
How much are closing costs in British Columbia?
Closing costs in BC generally range from 2% to 4% of the property value. Key factors that impact the final amount include legal fees, property transfer tax, tax adjustments, and taxes such as foreign buyer tax.
How much are closing costs in Alberta?
Closing costs in Alberta typically fall in the 3% to 5% range of the property value. While there is no land transfer tax like in other provinces, title insurance, home insurance, lawyer fees, and tax/utility adjustments are likely still applicable.
Who pays closing costs?
The home purchasers are responsible for paying the closing costs.
How do I calculate closing costs in Ontario?
To calculate closing costs in Ontario, you need to add together all the associated expenses, such as land transfer tax, realtor fees, inspections, title costs, tax adjustments, etc., which typically total around 2% to 4% of the purchase price.
How much are closing costs in Manitoba?
Closing costs in Manitoba usually range from 2% to 4% of the purchase price. Key indicators include land transfer tax, legal fees, title registration, home insurance, and tax/property adjustments.
When are closing costs due?
Closing costs are due at the time of closing, usually when you sign with the lawyer.
How can I avoid closing costs?
Unfortunately, it's not possible to fully avoid closing costs. You'll need to pay for lawyer or notary fees, as well as title insurance in most cases. Some transfer costs can be waived by meeting certain criteria to reduce your closing costs, but they can't be completely avoided.
What are average closing costs on a house?
Most experts estimate that the average closing costs on a house are around 1.5% to 2% of the home's value.
How do I reduce closing costs?
In some provinces, there are certain credits available if you're a first-time homebuyer or if you're purchasing a new build, which can help reduce your closing costs.
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