Closing Costs You Need To Be Aware Of

When you buy, sell, or refinance a property, closing costs are unavoidable and should be understood ahead of time. These expenses can come as a surprise if you’re not prepared. Let’s break down what closing costs entail and give you an idea of what to expect.

Closing costs are the fees and expenses that must be paid when a real estate transaction is finalized. They vary depending on whether you’re the buyer, seller, or refinancing. Typically, buyers can expect these costs to range from 1.5% to 4% of the home’s purchase price, depending on the specifics of the transaction and location in Canada. Refinancing costs can be lower, potentially just a few thousand dollars, which can often be added to your loan balance to minimize out-of-pocket expenses.