For many home buyers in Newfoundland, closing costs are a complete mystery; a slew of hidden fees that only show up at the last minute to empty your wallet! But there is a simple formula for these costs:
A safe bet for closing costs is 1.5-2% of your total purchase price, (in addition to your minimum 5% down payment). This covers off things like government fees for registering your mortgage and your deed, title searches, tax certification, law society fees and actual fees for legal work (despite what you may think, the majority of fees a lawyer collect actually go towards government required items).
Our mortgage calculator takes the guess work out of this for Newfoundland home buyers as we break the different costs down when estimating how much it's actually going to cost you on closing day to get your keys.
The few things we can't account upfront are things like:
Property tax - In the event the homeowner has her property taxes paid until the end of the year, the new buyer would have to reimburse them the remaining amount they've paid. (ie. If your closing date is August 15th, you'd be on the hook for 4.5 months property taxes on the property)
Oil/Propane - If the house has either oil heat, a propane fireplace/stove, etc, you will be required to reimburse the homeowner for the remaining fuel in the tank. (Often, tanks are filled around the time of closing so you can be billed for a full tank)
While the actual fees for billable hours vary from lawyer to lawyer, this calculator will give you a pretty close idea for what you can expect!
Calculate your down payment and closing costs: HERE