Closing costs in Ontario can add $11,000 to $30,000 to a $750,000 purchase, and they are due in cash on closing day. In this episode, three experienced realtors sit down with licensed mortgage broker Monica Falco to explain what first-time home buyers and move-up buyers need to budget before making an offer. Learn how a statement of adjustments works, why lawyer quotes differ, what the tax on mortgage default insurance costs, and why you cannot finance closing costs. You will also hear what new build buyers pay that resale buyers do not, and what extra inspections matter on country homes. Real Estate Without The Noise brings you honest conversations about life, money, family and real estate from Caledon, Brampton, Etobicoke, Oakville and across the GTA. Hosted by Evelyn Lopes, Ruth Ballantyne and Sandy Casella.
Closing costs in Ontario run between 1.5% and 4% of the purchase price, and every dollar is due in cash on closing day.
On a $750,000 home, that is roughly $11,000 to $30,000 on top of your down payment.
In this episode of Real Estate Without The Noise, Evelyn Lopes, Ruth Ballantyne and Sandy Casella sit down with licensed mortgage broker Monica Falco of M2 Mortgage Team and Capital Home Lending.
You will hear how the statement of adjustments works, why lawyer quotes can look so different, and why the tax on mortgage default insurance counts as a closing cost.
They also cover new build closing costs, extra inspections on country properties in Caledon and the NW GTA, and the 1.5% lender requirement.
Key takeaways:
Closing costs are real, they are due in cash, and they cannot be added to your mortgage.
Find your numbers before you fall in love with a house.
Build your team early: a realtor, a mortgage broker and a lawyer.
Listen on Spotify, Apple Podcasts or YouTube.
Know your number before you make an offer, and send this episode to someone who is house hunting right now.
___
0:00 The most dangerous number in your home purchase
1:00 Meet Monica Falco, mortgage broker
2:00 Why buyers forget closing costs
3:30 The costs that catch buyers off guard
5:20 New condos and the 10 day cooling off period
6:00 The tax on mortgage default insurance
7:10 When to talk about closing costs with buyers
8:45 You cannot finance closing costs
9:30 The statement of adjustments, explained
12:15 Country homes and extra inspections
13:15 How to calculate closing costs before you offer
14:30 The 1.5% lender requirement
15:50 Why your team matters
17:30 Has a deal ever fallen apart over closing costs
18:40 Pre-construction and new build costs
19:45 The grading deposit you can get back
21:00 How buyers adjust when the number is a shock
22:00 Banks versus brokers
24:00 Three things to remember
25:00 Thank you and where to find the show
____
CONNECT WITH REAL ESTATE WITHOUT THE NOISE
Evelyn Lopes, RE/MAX Realty Services Inc. | Caledon, Orangeville, Erin, Guelph, NW GTA | evelyn@evelynlopes.com | 905-965-5902
Ruth Ballantyne, RE/MAX Realty Services Inc. | Brampton and surrounding areas | ruth@ruthballantyne.ca | 416-779-8732
Sandy Casella, eXp Realty | Etobicoke, Hamilton, Burlington, Oakville, GTA West | sandy@sandycasella.com | 416-467-8627
Our guest:
Monica Falco, Founder, M2 Mortgage Team | Principal Broker, Capital Home Lending #12347 | 647-204-8621 | monica@m2mortgageteam.ca | www.m2mortgageteam.ca | Instagram: m2.mortgageteam
Show email: RealEstateWithoutTheNoise@gmail.com
Listen and watch: YouTube: youtube.com/@realestatewithoutthenoise