The Canadian city of skyscrapers, Toronto, is one of the world's famous cities for its business and tourism sector. Toronto is renowned for many reasons, one of which is the increase in the number of property buyers in the city. Due to steady growth in real estate, high employment rates, and rising GDP, Toronto is an exciting and attractive place for property buyers.
When investing in properties, the best option is to purchase a condo. Property buyers are keen on buying condos because it serves in many ways. A condominium consists of several housing units and is easier to invest in. However, if you want to invest in a condo, always check out Toronto condo reviews before purchasing. It is a reliable platform wherein locals rate and review different condominiums.
Here are a few costs you should consider or be aware of when buying a condo in Toronto.
Closing Costs Of Condos in Toronto
As the name suggests, these are all the fees, charges, and costs associated with completing your investment. It includes the mortgage deals, legal fees, and administrative expenses in your condo's final purchase agreement. It is vital to know these added expenses because they are not included in your mortgage deposits and are paid immediately once the deal is concluded.
Types of Closing Costs
Closing costs of condos in Toronto differ in the place, area, and size of your property. Typically it varies between 3-5% of the purchase price of a condo. However, it may rise in some situations, so always keep your budget higher than expected.
Here are a few essential costs included in your closing costs when purchasing a condo in Toronto.
- Land Transfer Tax - This is one of the most costly fees associated with your purchase. It is the fee paid by the buyer of the property to the seller of a property during the transfer of ownership. These charges are usually applied when a property is resale, and costs depend on the purchase amount. You must pay this fee to Toronto and Ontario land transfer taxes if you buy in Toronto. And if you are purchasing a property for the first time in Toronto, you may get a rebate.
- GST or HST - It is only charged on new properties and not on homes priced below $400,000. It is charged when the cost exceeds the given amount. However, in some instances, you may be eligible for some rebates for both federal and provincial. It is important to check with your notary or lawyer before considering your GST fees and also check client reviews on Toronto condo reviews before making a decision.
- Other Closing Costs- A few additional costs are included in buying condos in Toronto. These all involve the final closing costs while purchasing homes in Toronto. It includes appraisal fees, legal fees, survey fees, interests, insurance, home inspection fee, and statements of adjustments. The cost of each fee ranges between $200-$1500 and it mainly depends on the purchase price in Toronto. The legal fees are mostly fixed, and the only variables are the fees you must pay to your notary and any other legal support you are availing yourself.
Buying a condo in Toronto is challenging, especially for an outsider. However, you can always consider buying a condominium that will be one of your best purchases.