To avoid any surprises on closing, here is a list of what to expect as far as closing costs:

1. The Deposit - Forms part of your down payment, a deposit is due upon acceptance of your offer. The balance of the down payment is due before the completion date (paid "in trust" to your solicitor)

2. Home Inspection - Prepared by a qualified inspector to assess the property for defects and poor maintenance. . $200-400.

3. Appraisal - Prepared by an appraiser chosen by the lender, or by CMHC/GE if the mortgage is insured. $165 - $300.

4. Legal Fees/Disbursements - Your lawyer will quote his fee for closing the purchase and mortgage plus an approximation for his disbursements, which includes registration fees, courier costs, photocopies, etc. Ask for an estimate. $750-1000.

5. Land Transfer Tax - Due on closing and reflected in the Statement of Adjustments which your lawyer prepares prior to closing day. Sales up to $200,000 Multiply 1% x Purchase Price ($2000.). The tax calculation changes for higher purchase prices.  eg;  $400,000 = $6000.tax

6. Interest Adjustment - Monthly mortgage payments are due on the first of the month. Unless the closing date is the first of the month, you must prepay the amount of the interest accrued up to the 1st day of the following month. This amount is due on closing day. (this is shown as a per diem per day)

7. Property Tax Holdback - If the lender is collecting and paying property taxes, you may be required to pay the lender an amount to ensure sufficient funds are available to pay the next installment of property taxes when due.

8. Prepaid Expenses - If the vendor has prepaid any other expenses such as utilities, water and sewage taxes, or property taxes, they are entitled to a refund of these overpayments for the period (during the year) that they did not own the property. This will be reflected as an adjustment and your lawyer will be responsible to advise you of this. (if you are paying for these costs, you may be entitled to a credit for the period that the vendor owned the property)