Key perspective
The down payment is not the only cash required to close. Purchase, refinance, private and commercial transactions each create different combinations of legal, valuation, tax and lender-related costs.
Common purchase costs
A purchase can involve land transfer tax, legal fees, title insurance, registration charges, appraisal, property-tax adjustments and prepaid items. Toronto purchases may also involve municipal land transfer tax.
Common refinance costs
A refinance may involve a discharge or prepayment penalty, appraisal, legal fees, registration, title insurance and lender or broker fees depending on the product. The break-even point should be calculated before proceeding.
Private mortgage costs
Private transactions commonly include lender legal costs and may include lender and brokerage fees. The borrower should receive a clear estimate of net proceeds after all deductions.