Purchasing a Property

The Issue of Closing Costs

In addition to your downpayment, which must be at least equal to 5% of the purchase price of the home you wish to buy, you must also ensure that you have enough money available to pay the closing costs. These costs, which may represent between 1.5% and 4% of the selling price of your property, include the following:

• Professional fees:
  • Legal fees
  • Certificate of location
  • Inspection costs
• Taxes:
  • Tax adjustment (municipal and school taxes)
  • Transfer taxes
• Other expenses:
  • Home insurance
  • Moving costs
  • Repairs and renovations
  • Cost of connection to public services (telephone, cable, electricity, etc.)
  • Furnishings, appliances, paint, tools, various accessories.

How can the closing costs on the purchase of a residence be assessed?

For any easy-to-remember “rule of thumb,” estimate between 1.5% and 4% of the selling price of the residence.