Ontario ยท purchase
Cash required to close
A full statement of adjustments: deposit, adjustments, mortgage advance, insurance premium, land transfer tax and legal costs in one figure.
Cash required to close is the purchase price less your deposit and mortgage advance, plus land transfer tax, legal costs, adjustments and any tax payable in cash. On an $800,000 Toronto condo with 10 per cent down and a $40,000 deposit, a first-time buyer typically needs about $62,000 on closing day.
Questions
Is the deposit part of my closing costs?
No. Your deposit was paid when your offer was accepted and is credited against the purchase price. It reduces what you owe on closing rather than adding to it.
Why is there tax on my mortgage insurance premium?
Ontario, Quebec and Saskatchewan charge provincial sales tax on mortgage default insurance premiums. The premium itself is added to your mortgage, but the tax on it must be paid in cash at closing.
Does the calculator use current rates?
It applies the rates in force on the closing date you enter, not today. A deal closing before a rate change is calculated under the old rules.