Mortgage Closing Costs
Defining Mortgage Closing Costs
Mortgage closing costs, often a small percentage of the purchase price, are the legal and administrative costs you will need to pay when your home purchase is complete and title is preparing to be, or has been, transferred (otherwise known as when your “house closes”). While some of these costs are covered by the lender or able to be included in the total amount financed, most fees are paid by the client in advance of any funds being transferred from the lender. As a result, these mortgage closing costs should be considered in addition to the down payment when purchasing a home. In addition to closing costs, there are other expenses and/or events that may require a cash outlay before, on, or after your house closes.
Shane helps you stay well informed and prepared
Shane and his experienced team believe that a well informed and prepared client are satisfied clients who are well positioned to make the best decisions for them, their families, or their businesses. As such, they work to make clients aware of the costs involved in mortgage financing to ensure that they do not run into any surprise costs for which they are unprepared and unable to cover.
When purchasing, most clients often only consider their down payment, not realizing that there can be a small percentage of additional costs, known as “closing costs” before, on, or after their house closes (the purchase completes). As mortgage experts, Shane and his team can guide you through these costs and help you prepare to ensure a fast and efficient purchasing and mortgage financing experience.
Mortgage Closing Costs
Closing costs, such as legal fees, and other one-time expenses associated with the purchase of a home can really add up, and you’ll need to factor these costs into your cash-on-hand budget. Shane and his team can help guide you through these costs and be best prepared for what you will encounter when purchasing your new home.
While the exact costs are best outlined by a real estate salesperson (REALTOR®) after obtaining a mortgage pre-approval from Shane, many first time buyers underestimate the amount they will need. Generally speaking, you’ll want to budget between 3% and 4% of the purchase price of a resale home to cover closing costs. So, on a home that costs $200,000, your closing costs could run anywhere from $6,000 to $8,000.
These are estimates and the actual amount you will need could be higher or lower, depending on factors like where you plan to live, the type and size of home you’re buying, or if it’s new construction. The exact costs will be unique to each buyer.
Shane and his team have outlined some of the common closing costs and what clients may expect before, on, or after the purchase of their home is complete (or their “home closes.”) As Shane’s clients are from all across the Greater Toronto Area (GTA), Niagara region, Southwestern Ontario and throughout Ontario, it is difficult to provide exact costs of these items as property values vary along with the cost of the various outlined professionals, from appraisers to lawyers.
There are also some differences in the costs that some lenders will both require and cover themselves or allow be included in the funds being borrowed. As well, the exact process of a home purchase is as unique as the home itself and the advice of a licensed real estate salesperson (REALTOR®) is recommended after obtaining a fast and comprehensive pre-approval from Shane. Shane has many trusted salespersons across the province. Therefore, the outline provided here is meant to serve as a guide.
Costs often included in the total mortgage amount
Cash outlays required before your home closes
Cash outlays required as your home closes
Other costs to consider
Wondering how much your next home could be?
Are you looking for a mortgage pre-approval to outline how much you could afford with your next home purchase? Apply now with Shane and learn how much you could afford when you go to purchase your first home or forever dream home and the interest rates available now.
It’s very important for me that my clients be well informed about the home purchasing experience and all of the costs incurred. With our vast experienced in real estate and mortgages, my team and I are able to help give you an overview of what you can expect in your mortgage financing experience, including the costs that are to be expected before, on, or after your purchase is complete (your “home closes.”)
― Shane Osmond, Mortgage Professional
Learn more about closing costs
Contact Shane and his experienced team to help guide you through the home purchasing experience from a mortgage financing perspective and give you a detailed breakdown of some of the closing costs that you can expect to incur on your purchase.
Shane can complete your application entirely online or over the phone, as well as in person. Shane offers a variety of options to connect with you and works around your schedule, allowing you to indicate the best time and method for him to contact you.