How do I calculate final closing costs?

How do I calculate final closing costs?

How much will you actually pay at closing in Milton, ON? Here’s the blunt, no-fluff math that every home buyer and seller needs.

Why you must know final closing costs before you move

You can’t plan a successful move or a clean closing without precise numbers. Closing costs change the amount you need at possession day, affect your mortgage, and shape the timeline and stress of the move. If you’re buying or selling in Milton, Ontario, this post gives a step-by-step calculation, local specifics, and real numbers — so you won’t be surprised at the lawyer’s desk.

The short answer: what final closing costs include (buyers and sellers)

• Land Transfer Tax (Ontario) — buyer pays
• Legal fees + disbursements — buyer and seller
• Title insurance — usually buyer
• Home inspection, appraisal, survey — usually buyer
• Mortgage-related fees (insurance, discharge, registration) — buyer
• Realtor commission — seller
• Utility and property tax adjustments — both sides share via prorated credits
• Moving expenses — buyer (or seller if renting a moving truck)

Now let’s break down each item and show exactly how to calculate them for Milton.

Step 1 — Calculate Ontario Land Transfer Tax (buyers)

Ontario Land Transfer Tax (LTT) is calculated in tiers. Milton is inside Halton Region — NO municipal land transfer tax like Toronto. Use this tiered method:

• 0.5% on the first $55,000
• 1.0% on the portion $55,001–$250,000
• 1.5% on the portion $250,001–$400,000
• 2.0% on the portion $400,001–$2,000,000
• 2.5% on the portion over $2,000,000

Example calculations:

• For a $600,000 purchase:

• 0.5% of $55,000 = $275

• 1.0% of next $195,000 = $1,950

• 1.5% of next $150,000 = $2,250

• 2.0% of next $200,000 = $4,000

• Total LTT = $8,475

• For an $800,000 purchase: total LTT = $12,475 (calculation: $275 + $1,950 + $2,250 + $8,000)

If you qualify as a first-time home buyer, you may be eligible for a provincial rebate up to $4,000. That can cut the LTT bill or eliminate it on lower-priced homes.

Step 2 — Legal fees, disbursements and registration costs

Expect a law firm or real estate lawyer to charge:

• Legal fee: $800–$1,800 (buyer or seller)
• Disbursements (courier, title search, office costs): $200–$500
• Land registration/registration of mortgage: $50–$200

Realistic total estimate: $1,000–$2,300. Ask your lawyer for a written fee estimate up front. That prevents last-minute surprises at closing.

Step 3 — Title insurance, home inspection, appraisal and surveys

• Title insurance: $200–$450 (one-time)
• Home inspection (recommended): $400–$700
• Mortgage appraisal (if lender requires): $300–$500
• Survey or real property report (if needed): $500–$1,200

Title insurance alone is worth it for most buyers — it protects you from historical title issues that can kill a deal.

Step 4 — Mortgage-related charges and mortgage insurance

• If your down payment is less than 20%, the lender requires mortgage default insurance (CMHC, Genworth, Canada Guaranty). Premiums vary and can be added to the mortgage or paid up front. Typical ranges are roughly 2.8%–4% of the mortgage amount depending on down payment percent. Confirm exact rate with your lender.
• Discharge or registration fees: $50–$300
• Prepaid interest (interest on the mortgage from closing date to month-end): variable

Ask your lender for a complete list of mortgage closing costs in writing.

Step 5 — Adjustments on closing day (prorated credits)

Adjustments pay for bills already paid by the other side or prepaid amounts. Typical prorated items:

• Property taxes (municipal + education)
• Utility bills (water, gas if applicable)
• Condo fees (if condo closing)

Example: Seller paid full year municipal tax. Buyer closes on July 1. Buyer reimburses seller for the portion from July 1 to December 31. Your lawyer will calculate the exact prorated amount and include it on the final statement.

Step 6 — Seller closing costs (commissions and payoffs)

Seller costs commonly include:

• Realtor commissions: industry standard ranges 4%–6% (split between listing and buyer agents). On an $800,000 sale at 5% that’s $40,000 (plus HST where applicable)
• Legal fees and disbursements: $800–$2,000
• Mortgage discharge penalties or adjustments, if the mortgage is closed early
• Any agreed repairs or credits negotiated in the sale

Sellers should ask their listing agent for a net proceeds estimate before accepting offers.

Step 7 — Moving costs and how closing timing affects them in Milton

Moving is part of total closing costs and often overlooked. Local factors in Milton:

• Milton has a mix of older neighbourhoods and new developments. Access, narrow streets, or condo elevator bookings add time and cost.
• Peak moving season (late May–September) drives prices up. Weekends are expensive.

Typical moving cost ranges (Milton, local move within 20–50 km):

• Studio/1-bedroom: $200–$600
• 2–3 bedroom house: $600–$1,500
• Larger homes or long-distance: $1,500–$4,000+

How closing timing impacts moving:

• If possession is at noon, movers often bill for half-day vs full-day rates.
• Delayed closing or lender delays may force a temporary rental or storage — $100–$300/month plus move costs.
• Closing date mismatches between buyer and seller can require a rent-back agreement or short-term storage.

Plan possession time deliberately. Ask for a confirmed time in the Agreement of Purchase and Sale and confirm with your mover.

Real-world total cost examples (buyer view)

Estimate totals at closing (buying a resale home) for Milton:

• Buying at $600,000 (not first-time buyer):

• LTT: $8,475

• Legal fees/disbursements: $1,500

• Title insurance + inspection + appraisal: $1,200

• Adjustments/property tax proration: $1,000 (varies)

• Moving: $800

• Estimated total at closing: $12,975 (not including down payment or mortgage insurance)

• Buying at $800,000:

• LTT: $12,475

• Legal fees/disbursements: $1,500

• Title insurance + inspection + appraisal: $1,400

• Adjustments: $1,500

• Moving: $1,200

• Estimated total at closing: $18,075 (not including down payment or mortgage insurance)

These are working examples. Your final numbers will depend on actual adjustments, lender fees, and negotiated items.

How to reduce closing and moving costs — smart moves that save thousands

• Qualify for first-time buyer LTT rebate and apply early
• Negotiate commission or offer tiered commission with your listing agent
• Bundle services: ask your realtor for preferred lawyers who provide flat-fee closing packages
• Book movers early and off-peak (weekday, off-season)
• Declutter and sell unwanted items before moving — fewer boxes, lower cost
• Roll CMHC into mortgage only if monthly affordability beats paying up front

Closing checklist: what you must have ready for possession day

• Certified funds (bank draft) or wire instructions from your lawyer
• Proof of homeowner’s insurance in place from closing date
• Contact info for movers and utility companies
• Final walk-through scheduled and documented
• Mortgage documents and lender contact ready

If anything misses — a late wire, missing insurance, or a failed financing condition — closing can delay. Delays cost money.

Why local Milton expertise matters

Milton’s market mix (new subdivisions, established neighbourhoods, and condo buildings) creates unique closing quirks: development levies, builder warranties for new homes, and specific municipal utility billing cycles. A local realtor and lawyer who close deals in Milton know how to shave days — and fees — off your move.

If you want exact numbers for your address, sale price, and timelines, get a written closing cost estimate. It will list LTT, legal fees, title insurance, prorations, and suggested moving costs so you can plan precisely.

Ready for a precise closing-cost plan for Milton, ON?

I provide clear closing cost estimates tailored to Milton addresses — not generic ranges. Email me at tony@sousasells.ca or call 416-477-2620 for a no-nonsense closing cost and moving plan. I’ll run the exact LTT math, prorations, likely legal fees, and realistic moving quotes so you know exactly how much cash you need at closing.

FAQ — Final closing costs in Milton, Ontario

1) Who pays the land transfer tax in Milton?

The buyer pays the Ontario Land Transfer Tax. Milton has no municipal land transfer tax. First-time buyers may get a provincial rebate up to $4,000.

2) How much should I budget for lawyer fees?

Budget $1,000–$2,300 for typical residential closings, including disbursements and registration. Ask your lawyer for a written estimate before you sign.

3) Are moving costs included at closing?

No — moving costs are normally separate. However, you should include them in your total move budget because they are part of the cost of possession. Unexpected closing delays can add storage or double-move fees.

4) Will the seller pay realtor commissions in Milton?

Yes. The seller typically pays the commission (commonly 4%–6% total, split between listing and buyer agents). Confirm the exact rate in your listing agreement.

5) What causes surprises at closing and how do I avoid them?

Surprises come from last-minute finance issues, missing insurance, incorrect wire transfers, or uncalculated prorations. Avoid surprises by getting a written closing-cost estimate from your realtor and lawyer at least 7–10 days before closing and confirming all wire instructions directly with your lawyer by phone.

Want me to run the exact math for your property in Milton, including LTT, prorations, legal fees, and moving quotes? Contact me: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca

Let’s put concrete numbers on the table and make sure your move is on time and on budget.