Header Image
Header Image



The conveyance of real property results in the payment of certain expenses by the parties involved. Set forth below is brief summary of theses expenses, that are incurred when transactions are handled properly and professionally, viewed both from the position of the Buyer and from the position of the Seller. Buyers should budget approximately 2-3% of the purchase price for closing costs.

Land Transfer Tax

This is paid by the Buyer at the date of the final closing to the Treasurer of Ontario
pursuant to the Land Transfer Tax Act. The tax is based on the purchase price and the current rates became effective on June 1st, 1989.
The rates are as follows for a single family residence:
$0-$55,000 0.5%
$55,001-$250,000 1% less $275.00
$250,001-$400,000 1.5% less $1525.00
$400,001– and up 2.0% less $3525.00
Example: To calculate the land transfer tax on a purchase price of $275,000, multiply the purchase price by 1.5% and deduct $1,525 ($4,125 - $1,525 = $2,600)

Disbursements – Purchase

In addition to the payment of Land Transfer Tax, Buyers are responsible to pay for
certain disbursements incurred by their lawyer in respect of various certificates, searches and registrations. Examples of such approximate disbursements are as follows:
i) Registration of Deed $70.70
ii) Registration of Mortgage $70.70
iii) Municipal and utility searches OR title insurance $270.00
iv) Abstract of Title & Execution Certificate $150.00
v) Transaction Levy $50.00
vi) Couriers, photocopies, postage, closing agent $75.00
For a typical purchase (including one mortgage), a Buyer should budget about $650.00 for disbursements. There will also be further costs for adjustments, land transfer tax and legal fees.

Note Costs May Vary in Different Trading Areas

Title Insurance

Title insurance insures against past problems that could affect your ownership in the
future. A low, one-time premium covers you for loss or damage up to the policy amount and all legal costs you would have to pay to defend your title. Once the policy is issued, a covered title problem is not your concern. It’s ours. First Canadian Title will assume the risk. No survey is required by your lending institution if you have title insurance. Note: The cost of title insurance is not having to pay the majority of the above noted disbursements. It is highly recommended that all purchasers obtain title insurance!



The Seller in a real estate transaction is not required to pay any Land Transfer Tax.
However, the Seller’s responsible to pay for certain disbursements incurred by their
lawyer such as:
Registration of a Discharge of Mortgage $50.00
Transaction Levy $50.00
Couriers, photocopies, postage, closing agent $75.00
For a typical sale (one mortgage to discharge), a Seller should budget about $175.00 for disbursements. There will also be further costs for adjustments and legal fees.
Adjustments on Closing Between Seller and Buyer On closing there will be adjustments to the sale price between the Seller and the Buyer
which will appear on a Statement of Adjustments as credits in favor of the Seller or the Buyer. If the Seller is relying on receiving or if the Buyer is relying on paying a fixed amount on closing, it is unpleasant if these adjustments come as a total surprise to your client.
For example, if taxes for the calendar year are $1,200.00, the deal closes June 30th and the Seller has paid the taxes for the entire calendar year, there will a credit on closing to the Seller of $600.00. In other words, the Seller receives $600.00 more and the Buyer pays $600.00 more.
Also, if there is a fuel tank at the property, the Seller usually fills the tank on closing and sells a full tank to the Buyer. If the adjustment were approximately 31 cents per litre for 909 litres. The Seller would receive $281.79 more and the Buyer pays $281.79 more on closing.


Most financial mortgage institutions now require a Buyer to produce a recent survey for the real property being purchased showing the boundaries of the lands and the location of the dwelling thereon. The term “recent” varies from lending institution to lending institution but as a loose rule a survey 10-15 years old will probably still be acceptable to a lender if accompanied by a Declaration of the Seller saying it is still accurate. If the Buyer requires a survey for the lender and the Seller does not have one, it is the responsibility and the expense of the Buyer not the Seller to have a new one prepared by an Ontario Land Surveyor. Title insurance will take care of the problems incurred in the absence of a survey or an up to date survey! It is highly recommended that title insurance be obtained in the absence of a survey.

Mortgage Insurance

In the event that the amount of your first Mortgage on your purchase transaction exceeds 75% of the purchase price, it will be necessary for you to purchase, for the protection of the Lender, mortgage loan insurance. This mortgage loan insurance premium that is paid is to protect the lender in the event that the mortgage is not paid. This is not to be confused with life, disability, or job loss insurance.
The mortgage insurance is normally purchased through CMHC (Canada Mortgage and
Housing Corporation) or GEMI (GE Capital Mortgage Insurance Canada.) The cost of
the insurance premium is paid by the Buyer. The amount of the mortgage insurance
premium is calculated using a loan/value ratio, and may be added to the mortgage


The premiums are as follows:
a) 75% to 80% 1. %
b) 80% to 85% 1.75%
c) 85% to 90% 2.00%
d) 90% to 95% 3.25%
e) 95% to 100% 3.40%
Other high ratio financing costs include an application/appraisal of $165 and there is 8% provincial sales tax on the mortgage insurance premium to be paid by the borrower as set forth above. While the mortgage insurance premium can be added into the amount of the Mortgage, the provincial sale tax on the premium is payable immediately at the time of the advance of the mortgage funds.

Building Inspection Fees on House Inspection Fees

It is generally recommended that when purchasing a resale home or new construction that a building inspection be carried out on the structure, either prior to making an offer on the property or at the time you have entered into the Agreement of Purchase and Sale. The fee for a normal building inspection on (can range from $250.00 to $500.00)

Legal Fees – Employee Transfer

It is the policy of most law firms to accept as reimbursement for their legal fees and
disbursements on a residential real estate transaction the normal guidelines of the
individual employer. Experience has shown that employers such as External Affairs, Bell Canada, various relocation services etc. have a set schedule of fees and disbursements to be allowed an employee who is being transferred. The client is not out of pocket any funds by virtue of any additional charge from most law firms.

Legal Fees – Department of National Defence

The legal fees for some transactions are governed by tariffs established by government agencies such as the Department of National Defence. Lawyers are prepared to be bound by the tariffs established and to work with Realtors on any Canadian forces transfer.

Legal Fees – Normal

Approximation of average legal fees on a residential real estate transaction is as follows:
Purchase $1650 to $1750+
Sale $1550 to $1650+

NOTE: The costs listed above are estimates and not to be deemed accurate. The costs are to give you an idea of the approximate expense range. It is incumbent upon you to verify any costs that you will be using in your purchase. Also use an approximate range of value instead of one fixed amount. Buyers should budget 2-3% of the purchase price for closing costs.


Homeownership Program Application

Buyer Representation Agreements

Did you know all realtors work on behalf of the seller of a home and not the buyer? This is true, unless you are working with a Realtor under a Buyer Representation Agreement

Buying a Cottage, or Home or investment property can be one of the largest investments we all make in our lifetimes, You want your interests to be represented and protected

By law, all realtors showing you a property, work in the best interest of the seller unless you sign a Buyer Representation Agreement with a realtor who will work exclusively on your behalf during a home purchase. Without it, under the law of the agency, realtors must pass on any information that may influence the home-buying negotiations to the sellers of the home that their customers are bidding on; even how much they would pay for the home or any of their motivations!

You now have two choices under Agency relationships customer relationship or client relationship.

Customer Service Agreement is a disclosure form that states that the realtor is NOT working for you as a buyer, but is providing customer service (fair and honest treatment, factual information about the property that is not visibly evident and to answer any questions you ask about the condition of the property) to you.

Buyer Representation Agreements states that the realtor is working for you and that you are bound to that realtor for the term of the agreement with a holdover period. In this case, your realtor is bound to you with fiduciary duties: loyalty, obedience, full disclosure, duty to use skill, care and diligence, duty to account for all monies and to protect your information. A very important fact is that it also allows the realtor to share his/her expert opinions, giving you full advantage of their knowledge and expertise. It now is their duty to you their client to answer questions that you may not even know to ask and a realtors accountability to you, the client, is now is paramount.

In the Buyer Representation Agreement nowhere does it state that you have to buy anything. It only states that if you do that you will use this particular brokerage and that they will be compensated for the service provided.

REMEMBER a realtor gets paid via commission that comes from the seller’s listing agent. Unless it states clearly on the customer service commission agreement how much you will pay the realtor.

How do you become a client? 

The buyer sign an exclusive Buyer’s Representation Agreement with a realtor. Usually, the buyer agrees to work with the realtor for a specified period of time and the realtor agrees to represent the buyer’s interests to the fullest.

Why not protect your interests?

Hire the person with the most knowledge to work on your behalf and to do it at no extra cost!

Ask Why?

The document should not be slipped into a stack of paperwork during an offer on a particular property, it's a little late in most cases.  This should be discussed at the first opportune time, Before you start looking at properties, so that you understand that I am working for you!

If you have any questions, please give us a call, we would be happy to guide you.


Investment in Affordable Housing
Homeownership Program Application

The Homeownership Program is designed to provide renters with a loan, up to 5% of
the purchase price, to assist them in purchasing their own home. The program assists
eligible applicants in the purchase of a home that does not exceed the purchase price of
$221,000. Deadline for the program is December 31, 2014 or until funds are
Approval for funding is based on the information provided by applicants and conditions
for the funding include, but are not limited to the following:
 Applicants must be Canadian Citizens, Landed Immigrants or have Refugee
Claimant Status
 At least one person must be 18 years of age
 Applicants must not owe arrears to any social housing provider
 Applicants do not currently own a home and are renting
 Applicants do not have assets over $30,000
 Applicants have a maximum household income of $66,200
 Applicants will use the purchased home as their sole and principal residence
 Applicants qualify for a mortgage
 A home inspection must be completed for the home being purchased



Hire a Professional Full-Time Real Estate Broker

A qualified, competent and full time real estate broker will help you navigate the myriad of decisions that arise when buying and selling a home. A broker provides value to the homeowner in many ways: 

  • Pays for all marketing and advertising costs.
  • Adds experience and expertise in all aspects of the sales process including marketing, financing, negotiations and more. 
  • Handles all showings.
  • Brings a network of known, trusted real estate professionals. If your broker doesn't have the answer, he or she likely knows someone who does.
  • Always has your interests in mind so you always have someone on your side.
  • Can handle and advise on all price and contract negotiations.
  • Provides you with all the possible options and opportunities without holding back.
  • Gives an unbiased, realistic view of your home and your options. Unlike buyers and sellers, a broker has no emotional attachment to property.
  • Has the knowledge to help you ask the right questions.
  • Being a third party, potential buyers are more likely to tell your broker the truth about your home, even if it is unflattering. This objective viewpoint will help you make the necessary changes to get your home sold.
  • Your time is valuable. A real estate broker allows you to spend your time how you want.

Buying Services for Grey and Bruce & Bruce Peninsula Home Buyers


Congratulations!  You have decided to purchase a home, or are thinking about buying one.  You'll be joining the ranks of hundreds of families who realize that home ownership offers a number of benefits including building equity, saving for the future, and creating an environment for your family.  When you own your own home, your hard-earned dollars contribute to your mortgage. The equity you earn is yours.  Over time, your home will increase in value.

In the following reports, you'll find the information you need to make a wise buying decision.  We'll take you through the planning process step-by-step , to help you determine which home is right for you.  You'll find a host of informative articles on mortgages, viewing homes, the offer, closing details and moving.

Please contact me if you have any questions about buying a home in Wiarton Grey Bruce or elsewhere in Ontario.


Below, select desired reports and complete the form provided.



File icon
File icon
File icon
File icon

* * Maximum of 2000 characters