How do I calculate final closing costs?
Want to keep more cash when you sell? Here’s exactly how to calculate final closing costs for a Georgetown, ON sale — step-by-step and with real numbers.
Quick headline: The final number you walk away with comes down to three things
Price – Commissions – Liens/Loans – Adjustments – Fees = Net Proceeds. Simple. Do the math before you sign.
Why this matters for sellers in Georgetown, ON
Selling in Georgetown (Halton Hills) isn’t just about setting a price. Local taxes, mortgage rules, legal nuances and common buyer expectations change the final payout. If you don’t calculate closing costs precisely, you’ll be surprised on closing day — or worse, short-changed.
This guide gives a short, direct system to calculate final closing costs. No fluff. Use it to plan, negotiate, and keep more money in your pocket.
The short list: What sellers typically pay at closing in Georgetown
- Realtor commission (including HST) – usually the biggest line item.
- Lawyer/Notary fees and disbursements.
- Mortgage payoff and discharge costs (penalty if early).
- Adjustments for property taxes, utilities, condo fees or prepaid items.
- Outstanding municipal charges or local liens (rare but possible).
- Moving costs and minor repairs or compliance items (if required by buyer).
- Capital gains tax (only for investment properties without principal residence exemption).
Note: Land Transfer Tax is paid by the buyer in Ontario, not by sellers. Georgetown is in Halton Region — no municipal land transfer tax like Toronto.
Step-by-step: How to calculate final closing costs (use this checklist)
1) Start with your agreed sale price.
2) Subtract realtor commission and HST.
- Typical commission in Ontario: 4.5%–5% of sale price (split between listing and buyer agents). Always confirm your listing agreement.
- HST (13%) applies to the commission amount. HST = commission × 0.13.
Example: Sale price $900,000. Commission 5% = $45,000. HST at 13% = $5,850. Total commission cost = $50,850.
3) Subtract mortgage payoff and discharge costs.
- Request a mortgage payout statement early (ideally 10–14 days before closing). That gives principal remaining, interest accrual, discharge fee and any penalty for breaking the mortgage early.
- Discharge fees typically $200–$400 plus legal handling.
- Prepayment penalties can be large. Fixed-rate mortgages often have either an interest rate differential (IRD) or three months’ interest — check your mortgage terms.
4) Subtract lawyer/notary fees and disbursements.
- Typical legal fees for a residential sale in Georgetown: $700–$1,500 plus disbursements. Complex files cost more.
- Ask your lawyer for an itemized estimate. They will handle title transfer items, payout of mortgages, adjustments and registration fees.
5) Account for adjustments and holdbacks.
- Property tax adjustment: If you pre-paid taxes or the municipality bills on different cycles, there will be a prorated adjustment at closing. The seller usually pays property taxes up to closing date; buyer pays after.
- Utilities and hydro: Prorated or final meter read — seller pays up to closing.
- Condo fees: Seller pays up to closing; buyer pays after. There may be a condo status certificate and administrative fees (usually $100–$300).
- Rent: If the home was rented, incoming rent already collected may be prorated in favour of buyer or seller depending on agreement.
6) Subtract any outstanding local charges or liens.
- Ask your lawyer to run a title search. Municipal work orders or local liens (rare) must be cleared.
7) Subtract moving and pre-closing costs.
- Local movers (Georgetown area) cost roughly $500–$2,000 depending on home size and services. Packing, storage and cleaning add up.
8) Consider taxes on capital gains (only when applicable).
- If the property isn’t your principal residence, capital gains tax applies. The tax calculation is separate and based on your tax situation. Consult an accountant.
9) Final math: Net proceeds = Sale price – (commission + HST + mortgage payoff + legal fees + adjustments + moving + other costs).
Full example: Real numbers to follow
Sale price: $900,000
- Realtor commission (5%): $45,000
- HST on commission (13%): $5,850
- Mortgage balance: $300,000
- Mortgage discharge fee + penalty: $2,500 (penalty depends on mortgage)
- Lawyer fees + disbursements: $1,200
- Property tax adjustment (prorated): $1,000 (example)
- Final meter readings/utility adjustment: $200
- Moving company: $1,200
Net proceeds = 900,000 – (45,000 + 5,850 + 300,000 + 2,500 + 1,200 + 1,000 + 200 + 1,200) = $541,050
This example shows commissions and mortgage payoff dominate the bill. That’s why negotiated commission rates and the timing of mortgage payoff matter.
Georgetown-specific tips that save sellers money
- Know your mortgage penalty method. Many lenders use IRD. A small timing change of closing date or waiting to beat a fixed-term expiry can save thousands.
- Get a mortgage payout statement early — don’t guess. Lenders can change the numbers by the time of closing.
- Shop legal quotes. Ask two or three Halton Hills lawyers for itemized estimates. Small differences matter.
- Confirm whether the sale requires any local permits or clearances (septic, well, municipal occupancy) — Halton often enforces local property standards.
- If selling a condo in Georgetown, request the status certificate early. Delays here can postpone closing and increase costs.
- Time your closing around property tax billing cycles only if it benefits you. Your lawyer will explain the exact adjustment.
Move smarter: reduce moving and hidden costs
- Declutter before you list. Every extra cubic foot costs in packing and moving.
- Get three moving quotes. Ask for written estimates and what is excluded.
- Use mid-week or off-peak closing dates for cheaper movers.
- Think hybrid move: move high-value items with pros and DIY the rest.
- If storage is needed, compare short-term storage units in Georgetown vs. Hamilton or Halton Shefford — sometimes nearby towns are cheaper.
Negotiation levers: where sellers can actually save money
- Commission structure: Negotiate the listing commission or a performance-based split. High-value listings have room to negotiate.
- Repairs vs price: Decide whether to fix a small item or reduce the asking price. Often reducing price is cheaper than paying a contractor at a premium.
- Closing date flexibility: If you can be flexible, buyers may accept a lower price for a faster or slower closing. Use timing to reduce mortgage penalties.
Closing day checklist for sellers in Georgetown
- Confirm final payout statement from lender.
- Get final statement from your lawyer showing all credits and debits.
- Do final meter readings and keep records.
- Leave all required manuals, warranties and keys for the buyer.
- Keep contact info for your lawyer and agent handy for last-minute calls.
Local market insight (short and direct)
Georgetown’s market has been driven by buyers looking for space, commutes to the GTA and value in Halton Hills. Detached homes and family properties still attract strong attention. That said, final closing numbers are personal — they depend on your mortgage, your agent’s commission and timing. Don’t let a market push you into a closing that leaves you short.
How a local realtor and lawyer partnership accelerates closing and reduces cost
Use a local agent who coordinates with a Halton Hills lawyer experienced in local title issues, municipal adjustments and common regional problems. That partnership prevents surprises and speeds the payout. If you want direct help, see contact info below.
FAQs — Selling, Closing Costs and Moving in Georgetown, ON
Who pays land transfer tax in Ontario?
The buyer pays provincial Land Transfer Tax. Georgetown (Halton Hills) has no separate municipal land transfer tax.
Is HST charged on realtor commission?
Yes. HST (13%) applies to the commission amount. Budget for it separately.
How much are legal fees for sellers in Georgetown?
Expect $700–$1,500 plus disbursements. Complex files or quick turnovers cost more. Ask for a written estimate.
Will I pay capital gains tax when I sell?
Only if the property is not your principal residence. Tax rules are complex — consult an accountant.
How do mortgage discharge fees work?
Lenders charge a discharge registration fee (commonly $200–$400) and may charge a penalty for ending the mortgage early. Get a payout statement to know the exact amount.
What are typical moving costs in Georgetown?
Local moves often range $500–$2,000 depending on size and services. Long-distance moves cost more.
Can I negotiate commission?
Yes. Commission is negotiable. Push for value: marketing plan, selling timeline and net proceeds matter more than a sticker rate.
What if there are municipal work orders or liens?
Your lawyer will find them. They must be resolved prior to closing or handled through escrow. Fix them early.
Do sellers pay condo status certificate fees?
Usually the seller orders the condo documents and pays the fee. Costs vary by condo corporation ($100–$300 typical).
When should I request final meter readings?
Do final reads on closing day (or the day before) and provide copies to your lawyer. Keep photos/time-stamped proof.
Want help calculating your exact closing costs for a Georgetown sale? I provide a clear closing-cost worksheet and a free estimate based on your mortgage payout and commission structure. Contact Tony Sousa, Local Realtor — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Legal and tax note: This post gives practical guidance but not legal or tax advice. For tax specifics and legal conditions, consult your lawyer or accountant.
