Congratulations, you’ve bought a property! Chances are you know you’ll have to shell out funds to close the deal, but luckily there are some ways of reducing those costs.

What exactly are closing costs? It’s helpful to know exactly what you’ll be paying for upon closing. Some people, especially first time buyers, don’t really know. In a nutshell, most money on closing goes for legal and administrative fees, but there are some other things to be aware of.

Lawyer Your lawyer is your best friend after your purchase. They’ll make sure all the i’s are dotted and the t’s are crossed. They do a title search, makes sure you have title insurance, registers the home in your name(s), searches the title, creates a statement of adjustments, oversees finances on closing day and their most exciting job where you’re concerned – gives you the keys to your home! Lawyer’s fees vary and you could save a considerable amount here. Ask friends and family members who they’ve used. Shop around.

Other costs that may be associated with closing include:

  • GST on the purchase price;
  • Appraisal fees;
  • Home inspection fees;
  • Survey fees;
  • Utility hookup fees;
  • Property tax or utility bill adjustments, etc.

Start by putting costs into three categories: Lender fees, third party fees and money paid out for you like for insurance and taxes.One of the biggest errors home buyers make is not shopping around. Really eyeball all fees and ask questions if some seem out of whack.

Look at lender fees. If something seems inordinately high, query it. Some lenders will charge you to apply for a mortgage. Some mortgage brokers might also want a deposit. Asking questions is a right you should definitely exercise. In Canada, there are things you cannot get around paying and many of these fees are fixed depending upon the purchase price.

You may be able to save on home inspection fees which range anywhere from $100-$500. If you’re a first time home buyer, you won’t have to pay land transfer fees. Look around at various moving companies or get family and friends to help with your move – make it fun!

When it comes to purchasing a home, the professionals at Northwood Mortgage are on hand to field your questions or concerns. We’ll point you in the right direction. Give us a call today if you’re planning on buying or selling your home.