Real Estate

[Toronto ON] Buying an assignment, how much fees should i expect?

  • Last Updated:
  • May 2nd, 2019 7:09 am
[OP]
Jr. Member
Jun 10, 2014
100 posts
21 upvotes
West Vancouver, BC

[Toronto ON] Buying an assignment, how much fees should i expect?

Assignor originally purchased for $380k. We have agreed to purchase for $530k. Building is expected to complete in early 2020

I am a first time homebuyer, this would be my primary residence.

I want to know what kind of closing costs we would be paying on top of this.
From what I understand,

Builders fees - Maybe 10-15k?
Land transfer tax - Assuming 380k, this should be less than 4k, should be covered by first time buyer rebate?
HST rebate - Not too sure about this, sounds like we would be responsible for ~20-24k upfront, but would get this mostly rebated from the CRA? Estimating paying 2k after rebate?

So assuming we would pay 530k + 10-20k on closing fees? Does this sound right, am I missing anything important?

I've also read that getting mortgage for assignments can be difficult. My salary is around ~75k, i have been told by my bank they can probably give me a mortgage of ~300k (but this was for a resale unit). Is it possible that I won't be able to get a mortgage at all? What would be my options if this happens? If they don't think the property is worth 530k, would they offer a mortgage on say 75% of it? How does this work?

Just for some info, approximate resale units in the area are about $580-600k

Thanks!
Last edited by doctordiddy on May 2nd, 2019 8:46 pm, edited 3 times in total.
3 replies
Deal Guru
Feb 29, 2008
13904 posts
10182 upvotes
We’re the development fees capped? You could pay an extra $15k on top of everything else. If condonis downtown Toronto good luck.

Edit never mind I saw your estimate. You’re probably ok then. Just get s lawyer to look over everything.
Deal Addict
Apr 14, 2017
1967 posts
618 upvotes
DT Calgary
Do you have over 200k in cash to pay for this?
Sr. Member
Nov 10, 2017
763 posts
527 upvotes
doctordiddy wrote: Assignor originally purchased for $350k. We have agreed to purchase for $510k. Building is expected to complete in early 2020

I am a first time homebuyer, this would be my primary residence.

I want to know what kind of closing costs we would be paying on top of this.
From what I understand,

Builders fees - Maybe 10-15k?
Land transfer tax - Assuming 350k, this should be less than 4k, should be covered by first time buyer rebate?
HST rebate - Not too sure about this, sounds like we would be responsible for ~20-24k upfront, but would get this mostly rebated from the CRA? Estimating paying 2k after rebate?

So assuming we would pay 510k + 10-20k on closing fees? Does this sound right, am I missing anything important?

I've also read that getting mortgage for assignments can be difficult. My salary is around ~75k, i have been told by my bank they can probably give me a mortgage of ~300k (but this was for a resale unit). Is it possible that I won't be able to get a mortgage at all? What would be my options if this happens? If they don't think the property is worth 510k, would they offer a mortgage on say 75% of it? How does this work?

Just for some info, approximate resale units in the area are about $550-570k

Thanks!
Generally speaking, closing fee is approximately 5% of the purchase price.

The following items should not be overlooked:

1. Tarion registration fee
2. Legal fee
3. Occupancy Fee
4. All adjustments listed in your APS
5. HST is applicable only if HST is not included in the purchase price in the APS. (Ie if the original purchaser's intend was investment)

By the way, which project ?

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