Summary of Closing Costs

1.       Application Fee:  It costs the lenders money to process your application and some will pass these costs onto the buyer. Application or mortgage initiation fees vary and some will waive this fee entirely. Please check on this when you meet with your favourite Mortgage Specialist or Broker.

2.       Mortgage Appraisal:  This is usually done if a lender requests it, the costs are up to the lender and if they will pass the cost onto you, this should be negotiable.

3.       Mortgage Life Insurance:  Payments would be tacked onto your mortgage payment. I would check with an alternative insurance company and compare pricing. It is always recommended that you have life insurance on your mortgage!

4.       Real Property Report:  Not applicable to the buyer as it is the Sellers responsibility to provide the up to date RPR as outlined not only in the Listing Contract but also in the Purchase Contract.

5.       Compliance:  The City of Calgary issues Compliance stamps on the RPR at a cost of approximately$90+GST

6.       Legal Fees and Disbursements:  Legal fees will vary according to the lawyer but will be somewhere in the neighbourhood of between $700-$2000.

7.       Statement of Adjustments:  The purchaser and the Seller are each responsible for their share of taxes. The City of Calgary taxes are due June 30^th-6 months in arrears and 6 months in advance. It is easy when the seller is on the TIPP program, tax payments are then assumed by the buyer.

8.       House Insurance:  The costs will vary from one insurer to the next. Your lender will want proof of insurance BEFORE they will release the funds.

9.       House Inspection/Condo Document Inspection:  The house inspector will sometimes charge on a per square foot basis and sometimes a flat fee. Costs range anywhere from $350-$500. Condo doc inspection is about the same, in the neighbourhood of $350.00

10.   GST:  Residential Resale homes are NOT subject to GST but NEW builds are. There is a formula that the builders use for a GST rebate, do not forget to ask the builder how much their rebate is on your NEW build.