Home & Garden

Rough idea on closing costs for a new build home?

  • Last Updated:
  • Aug 18th, 2015 9:46 am
Tags:
None
[OP]
Deal Addict
User avatar
Nov 9, 2007
3879 posts
297 upvotes
Toronto

Rough idea on closing costs for a new build home?

I know there are various online calculators but haven't really found one that will give closing costs specifically for a new build. Like builder's closing costs etc. Would love for some help in what to expect basically purchasing a new build home.

-Not 1st time home owners
-New build home in ajax for roughly around $550K including HST
-20% down

If anymore info is needed just reply to this post and I will update my post.
36 replies
Deal Addict
Mar 21, 2006
4478 posts
465 upvotes
Burlington, Ontario
This is entirely relative to you and your situation. It will be different for everyone.

Usually budget 2-4% of your purchase price.

Not all builders itemize things the same way. You would need to talk to your builder about what closing costs are outside of your sale price.
Audio - Video - Data - Security - This is what I do
Deal Fanatic
May 29, 2006
9489 posts
2084 upvotes
we didnt have any, price paid was the price on the sale sheet, plus upgrades.

Edmonton.
Newbie
Aug 27, 2006
95 posts
4 upvotes
mmhassa2 wrote:
Aug 25th, 2011 10:48 pm
I know there are various online calculators but haven't really found one that will give closing costs specifically for a new build. Like builder's closing costs etc. Would love for some help in what to expect basically purchasing a new build home.

-Not 1st time home owners
-New build home in ajax for roughly around $550K including HST
-20% down

If anymore info is needed just reply to this post and I will update my post.


I am sure there are many misc fees, but here are the basic ones...

Land Transfer for 550k = ~$7500
Lawyer's Fee ~$3500+tax
Adjustment on City Development Cost (diff btw offer est. $to current city's $)
Tarion Fee $1299 http://www.tarion.com/Warranty-Protecti ... -Fees.aspx
Cost of setting up utility / deposits
Deal Addict
User avatar
Dec 18, 2004
3141 posts
78 upvotes
Mississauga
Whatever you calculate ... add an extra $10K to $20K just for stuff. That's what we found after closing on a resale.
Sr. Member
Nov 15, 2005
897 posts
48 upvotes
GTA
Stuff on my list aside from Lawyers & Land transfer fees & Tarion fee in no particular order:

Hydro & gas meters ($500)
Pave driveway ($300)
Law Society ($62)
Buyout hot water tank ($1210 optional)
Prepay security monitoring for 3 years ($540 optional)
Deal Addict
User avatar
Jul 19, 2006
2208 posts
88 upvotes
Toronto
loksau wrote:
Aug 26th, 2011 8:49 am
I am sure there are many misc fees, but here are the basic ones...

Land Transfer for 550k = ~$7500
Lawyer's Fee ~$3500+tax
Adjustment on City Development Cost (diff btw offer est. $to current city's $)
Tarion Fee $1299 http://www.tarion.com/Warranty-Protecti ... -Fees.aspx
Cost of setting up utility / deposits


$3,500 seems like a lot for lawyer's fee...what does this include?? My lawyer only charge me $700...He is great! came highly recommended by a co-worker.

I know another lawyer that only charge $500...but I can't vouch for him...no idea how good he is...
Newbie
Aug 27, 2006
95 posts
4 upvotes
virgoan wrote:
Aug 26th, 2011 9:16 am
$3,500 seems like a lot for lawyer's fee...what does this include?? My lawyer only charge me $700...He is great! came highly recommended by a co-worker.

I know another lawyer that only charge $500...but I can't vouch for him...no idea how good he is...

AMVIRGOAN: $3500 is actually ~3000 plus HST. Don't want to give the low ball # so that you will be surprised.

Lawyer Fee 500-800
Mortgage Registration Fee
Title Registration Fee
On and Off Title Search (might not be necessary for new property) Fee
Title Insurance Fee
Delivery Fee
Photo Copy / Fax Fee / Storage Fee
[OP]
Deal Addict
User avatar
Nov 9, 2007
3879 posts
297 upvotes
Toronto
firechkn wrote:
Aug 26th, 2011 9:14 am
Stuff on my list aside from Lawyers & Land transfer fees & Tarion fee in no particular order:

Hydro & gas meters ($500)
Pave driveway ($300)
Law Society ($62)
Buyout hot water tank ($1210 optional)
Prepay security monitoring for 3 years ($540 optional)

Thanks approx what is the Tarion fee? Also I have heard about builder's closing costs...something about putting caps on it etc. Can anyone shed some light on this area. I have contacted the builder, just wanting some info from those who actually went through the process. I'm aware of the lawyer/land transfer costs which is pretty much what we paid for a resale. But with a brand new home Im trying to see what could be the unexpected costs could be.
Newbie
Aug 27, 2006
95 posts
4 upvotes
mmhassa2 wrote:
Aug 26th, 2011 10:35 am
Thanks approx what is the Tarion fee? Also I have heard about builder's closing costs...something about putting caps on it etc. Can anyone shed some light on this area. I have contacted the builder, just wanting some info from those who actually went through the process. I'm aware of the lawyer/land transfer costs which is pretty much what we paid for a resale. But with a brand new home Im trying to see what could be the unexpected costs could be.

- Tarion Fee is a fee that you buy into the Building Warranty Program (must in Ontario)

- The cap should be referring to the MAX City Development Cost. For example if you purchase the property in 2008, the Development Cost at that time was $5000, in 2011 when you close the property the development cost is $15000. You have to pay that extra $10000. BUT if you were to Cap it at 8000, the builder will have to pay that extra $7000 to the city.
Newbie
Aug 27, 2006
95 posts
4 upvotes
loksau wrote:
Aug 26th, 2011 10:55 am
- Tarion Fee is a fee that you buy into the Building Warranty Program (must in Ontario)

- The cap should be referring to the MAX City Development Cost. For example if you purchase the property in 2008, the Development Cost at that time was $5000, in 2011 when you close the property the development cost is $15000. You have to pay that extra $10000. BUT if you were to Cap it at 8000, the builder will have to pay that extra $7000 to the city.


Development Charge for 2011
http://www.townofajax.com/Page102.aspx
Sr. Member
Nov 15, 2005
897 posts
48 upvotes
GTA
mmhassa2 wrote:
Aug 26th, 2011 10:35 am
Thanks approx what is the Tarion fee? Also I have heard about builder's closing costs...something about putting caps on it etc. Can anyone shed some light on this area. I have contacted the builder, just wanting some info from those who actually went through the process. I'm aware of the lawyer/land transfer costs which is pretty much what we paid for a resale. But with a brand new home Im trying to see what could be the unexpected costs could be.

Adjustment on closing can be anything, in our case our lawyer made an amendment to cap the fee at $1000 and the builder agreed. Our builder already mentioned to us that they probably won't charge it.

Our Tarion fee is $971, depends on value of house.

Don't forget if you need to bridge your mortgage lawyer may charge extra for this, $75 in my case.

Bank charges us $275 for admin fees for the bridge.

Also, put some money aside for house stuff you will most definitely need once you move it.
Deal Addict
User avatar
Jul 19, 2006
2208 posts
88 upvotes
Toronto
loksau wrote:
Aug 26th, 2011 10:12 am
AMVIRGOAN: $3500 is actually ~3000 plus HST. Don't want to give the low ball # so that you will be surprised.

Lawyer Fee 500-800
Mortgage Registration Fee
Title Registration Fee
On and Off Title Search (might not be necessary for new property) Fee
Title Insurance Fee
Delivery Fee
Photo Copy / Fax Fee / Storage Fee
I don't remember the exact break down for the lawyer fee but mine was a lot lower...My lawyer even paid me back $175! I remember paying $357K all-in for a $350K house. This was not a brand new house..7 years old...20% down...We were not first time buyer and the house is in Toronto so there is that stupid land transfer tax crap.

We did the title search & title registration too. There were no mortgage registration fee, delivery fee or photocopy fee.
[OP]
Deal Addict
User avatar
Nov 9, 2007
3879 posts
297 upvotes
Toronto
loksau wrote:
Aug 26th, 2011 10:58 am
Development Charge for 2011
http://www.townofajax.com/Page102.aspx
Thanks for the link, so the closing fee would be $33K on top of the purchase price??? :|
firechkn wrote:
Aug 26th, 2011 11:22 am
Adjustment on closing can be anything, in our case our lawyer made an amendment to cap the fee at $1000 and the builder agreed. Our builder already mentioned to us that they probably won't charge it.

Our Tarion fee is $971, depends on value of house.

Don't forget if you need to bridge your mortgage lawyer may charge extra for this, $75 in my case.

Bank charges us $275 for admin fees for the bridge.

Also, put some money aside for house stuff you will most definitely need once you move it.

If you dont mind me asking what was your purchase price? So you had to pay only $1K and the other necessary fees?

So here is the list of extra's for a new build which would not be there for a resale, feel free to let me know if I'm missing any. Really trying to see the price difference between new build and resale.

-Tarion Fee $1300 from this website:http://www.tarion.com/Warranty-Protecti ... -Fees.aspx
-City Development Cost $33K? But can be asked to be capped at for a much low amount?
-Cost of setting up utility/deposits (Rough idea as to how much)
-Paved driveway
-Cost of fence
-Cost of A/C
Newbie
Aug 27, 2006
95 posts
4 upvotes
mmhassa2 wrote:
Aug 26th, 2011 2:37 pm
Thanks for the link, so the closing fee would be $33K on top of the purchase price??? :|



If you dont mind me asking what was your purchase price? So you had to pay only $1K and the other necessary fees?

So here is the list of extra's for a new build which would not be there for a resale, feel free to let me know if I'm missing any. Really trying to see the price difference between new build and resale.

-Tarion Fee $1300 from this website:http://www.tarion.com/Warranty-Protecti ... -Fees.aspx
-City Development Cost $33K? But can be asked to be capped at for a much low amount?
-Cost of setting up utility/deposits (Rough idea as to how much)
-Paved driveway
-Cost of fence
-Cost of A/C



Your original purchase price should include Development Charges. You just need to pay the diff IF Ajax did increase development charges from then!

Top