Costs
The following is an estimate of the costs involved
in the normal operation of a home in the Toronto area. Costs vary
from one area of the city to another so these figures should be used
only as a guide.
Realty Taxes
Property owners have the option of paying their property taxes in
eight installments over the course of the calendar year. Mortgage
companies may insist that they pay the property tax and collect it
with your monthly mortgage payment. Realty taxes range from $1,800
to $6,000 a year and up depending on the size and location of the
property. These figures are available on each property listing.
Heating
Home heating will usually be provided by natural gas, oil or electricity.
Costs vary depending on the type of fuel, size of the home, amount
of insulation, exposure and usage. The average cost of heating a
home with gas or oil is $75 to $200 per month and up. Electricity
is usually more expensive. Costs vary greatly depending on use, but
the average monthly expense for a four-person family is $75 to $150
and up. Billing is generally every two months.
Insurance
Insurance is essential for all homeowners and is required by your
mortgage company before it will release the funds to close the deal.
Premiums are based on the replacement cost of the building and start
at around $550 per year.
Water & Sewage
Most properties in Toronto are now on water meters and are billed
according to usage. Some older parts of the city are still on a flat
rate and property owners pay approximately $400 a year for both services.
| CMCH Costs: |
|
|
| % Down |
CMHC Fee |
Cost/$100k Mt |
| 5% |
2.75% |
$2,750 |
| 10% |
2.00% |
$2,000 |
| 15% |
1.75% |
$1,750 |
| 20% |
0% |
$0 |
| 25% |
0% |
$0 |
|
Additional Costs of Buying
Home Inspection
A home inspection is strongly recommended for most residential properties
and will usually be a condition of the offer. Your agent can assist
you in choosing a home inspector. The cost will vary depending on
the value, age and use of the property but will usually range from
$350 to $600.
Termite Inspection
You may wish to hire a termite inspector as well as a home inspector
if you are buying in an area of the city where termites are known
to be a problem. This could add another $250 and up to the cost of
your inspection.
Appraisal Fees
When you apply for a mortgage, the lender will want to see an appraisal
on the property to ensure that the price you are paying falls within
the accepted range of value for that type of property and that area
of the city. The fee for this is usually $235 and up.
Land Survey
When you make an offer on a freehold property you will usually ask
the vendor to provide a copy of the survey for the property. The
purpose of this survey is to show the boundaries as well as the footprint
of the building on the site. If there is no survey available, you
may wish to hire a surveyor to prepare one at a cost of approximately
$1000.
Title Insurance
Title insurance is relatively new in this country although it has
been widely used in the United States for some years. It provides
insurance against the future costs of remedying most problems with
the title on your property. Ask your agent to explain the benefits
and the cost of this service ($250 and up).
Land Transfer Tax
See the Land Transfer Tax
Calculator to calculate the cost based on the property price.
Applicable Taxes
The Seller is required to pay the GST on the real estate commission.
Purchasers are responsible for paying applicable taxes
on appraisal services, land survey, home inspection, termite inspection,
lawyer’s fees, and on the premium charged on CMHC loans.
|
