Understanding Closing Costs for Milton Homebuyers and Sellers

Buying or selling a home in Milton, real estate milton ontario involves various closing costs that must be paid to complete the real estate transaction. While closing costs vary, understanding these expenses is key for both buyers and sellers when budgeting for their move. Here’s what Milton homebuyers and sellers need to know:
Closing Costs for Milton Homebuyers
Discover the best moving companies in London, Ontario, offering reliable services for a seamless relocation experience. Trust experienced professionals to handle your move with care and efficiency.
When purchasing a home in Milton, plan for these typical closing fees and expenses:
Land Transfer Tax – This is a provincial tax ranging from 0.5% to 2% of the home’s purchase price, payable when the property changes ownership. On a $750,000 Milton home, land transfer tax is approx. $8,475.
Legal Fees – Lawyers typically charge around $1000 – $1500 to review documents and represent the buyer’s interests. Ensure they are experienced with Milton real estate.
Title Insurance – This optional insurance covers financial loss from defects in the property title. Budget $200 – $300 for a title insurance policy.
Home Inspection – A thorough home inspection costs $350-$500 on average. This investigates the property’s condition to identify issues early.
Survey Fee – If purchasing a resale home, the seller may provide an existing survey. If not, budget $1000 – $2000 to have a new property survey completed.
Mortgage Fees – There are mortgage application fees, appraisal fees, and lending fees charged by the buyer’s bank or mortgage broker. These total $500 – $1000 typically.
Property Tax Adjustment – The seller reimburses the buyer for any prepaid property taxes already paid to cover the days the buyer now owns. Adjustments are made on closing.
Utility Charges – Hydro/water bills may need adjustment if the seller had prepaid portions that cover the buyer’s ownership. The lawyer oversees any reimbursements.
Moving Costs – Account for expenses like moving truck rentals, movers, or supplies when relocating to your new Milton home.
Closing Costs for Milton Home Sellers
When selling a home in Milton, common closing costs include:
Real Estate Commission – A typical commission for a Milton real estate agent is 2.5-3% of the home’s sale price. This is paid out of sale proceeds.
Legal Fees – Similar to buyers, approx. $1000 – $1500 for a real estate lawyer to handle paperwork and transactions.
Discharge Fee – This bank charge (around $100-$200) releases the mortgage on the property when it’s paid out by the buyer.
Utility Cancellation Fees – Changing over or cancelling existing utility accounts may incur small fees charged by providers.
Moving Costs – If relocating to a new home, the seller faces moving expenses like the buyer.
With good planning and budgeting, Milton homebuyers and sellers shouldn’t find themselves caught off guard by closing costs. Knowing the approximate expenses in advance leads to a smoother closing process. Consult your real estate agent and lawyer for help estimating costs for your specific transaction.