What are typical closing costs for buyers?
Shocking breakdown: What buyers really pay at closing in Georgetown, ON — and why sellers must understand it to win top offers.
Quick, blunt answer
Buyers in Georgetown, Ontario typically pay between 1% and 4% of the purchase price in closing costs, plus any mortgage-related charges and moving expenses. For a $800,000 home, expect buyer closing costs roughly in the $8,000–$32,000 range before moving and one-time adjustments. Those costs shape offers, negotiations, and closing timelines — and sellers who ignore them lose leverage.
Why home sellers in Georgetown should care
If you’re selling in Georgetown, ON, you set price, accept offers, and negotiate terms. Buyers don’t just look at the list price. They look at total cash required to close. If closing costs push a buyer to the limit, they might:
- Ask for price reductions or credits
- Request longer closing windows
- Withdraw from offers
Understanding typical buyer closing costs lets you:
- Anticipate lowball offers
- Structure seller concessions strategically
- Promote your listing correctly (e.g., “rent-back”, flexible closing)
This is local market strategy — not theory. Georgetown is part of Halton Hills and the Greater Toronto Area commuter belt. Buyers here often juggle mortgage qualification, commuting costs, and moving logistics. Nothing changes the outcome faster than being prepared.
Full breakdown: Typical buyer closing costs in Georgetown, ON (with local context)
Below are common buyer closing costs. I list realistic local ranges and explain when each applies.
1) Land Transfer Tax (provincial) — mandatory
- What: Ontario Land Transfer Tax (LTT) paid when ownership transfers.
- Who: All buyers in Ontario, including Georgetown.
- Typical cost: Sliding scale — often from a few hundred to several thousand dollars depending on price. For many buyers in the $500K–$1M range, expect roughly $4,000–$10,000.
- Local note: Only Toronto charges a municipal LTT as well — Georgetown does not. Calculate with a local realtor or lawyer for exact figures.
2) Legal fees and disbursements
- What: Lawyer or notary fees to handle closing, title search, registration, and disbursements.
- Typical cost: $800–$2,000+ depending on complexity.
- Local note: If title issues or searches are required (old properties in Georgetown), fees trend higher.
3) Title insurance
- What: One-time insurance protecting against title defects, fraud, or encumbrances.
- Typical cost: $200–$500 for standard coverage, higher for large mortgages.
- Local note: Lenders often require it; savvy buyers buy extra. A small cost that prevents massive headaches.
4) Home inspection and related reports
- What: Home inspection, pest or sewer camera, condo status certificate (for condos).
- Typical cost: $400–$1,000 for a home inspection; extra reports extra.
- Local note: Older Georgetown homes may need multiple reports; buyers add contingency funds.
5) Appraisal and lender fees
- What: Lender-ordered appraisal and mortgage processing fees.
- Typical cost: Appraisal $300–$500; admin/mortgage fees vary.
- Local note: Mortgage rules tightened post-pandemic. Lenders may require updated appraisals for high-ratio loans.
6) Mortgage insurance (CMHC) — if down payment < 20%
- What: CMHC or private mortgage insurance added to mortgage principal when down payment is under 20%.
- Typical cost: 2.8%–4% of mortgage amount (one-time premium added to mortgage).
- Local note: This isn’t an out-of-pocket closing cost, but it affects monthly payments — buyers with higher debt ratios will feel it.
7) Adjustments and prepaid items
- What: Property tax adjustments, utilities, condo fees, prepaid interest on mortgage.
- Typical cost: Varies — often several hundred to a few thousand dollars depending on timing.
- Local note: In Georgetown many older lots have seasonal water or local charges that can create unusual adjustments.
8) HST on new builds
- What: HST applies to new homes or major renovations; there are rebates but procedures are complex.
- Typical cost: Can be significant — tens of thousands on very new builds; rebates available.
- Local note: New construction in Halton Hills comes with different closing timelines and HST paperwork.
9) Moving costs and immediate home expenses
- What: Movers, truck rental, temporary storage, immediate repairs, and setup (locks, utilities, internet).
- Typical cost: Local move in Georgetown can be $500–$2,500 depending on size and distance.
- Local note: Moving from or to Georgetown often includes commuting coordination; weekend peak rates apply.
10) Other possible costs
- Survey or real property report if required ($500–$2,000)
- Mortgage prepayment penalties if buyers break existing mortgages
- Home warranty for new or recently renovated homes ($300–$1,000)
Real example: Buyer closing cost estimate for a $800,000 Georgetown home
This is a simplified scenario to give you a feel for numbers. Exact figures vary.
- Purchase price: $800,000
- Land Transfer Tax (approx): $7,000
- Legal fees & disbursements: $1,500
- Title insurance: $350
- Home inspection & reports: $700
- Appraisal & lender fees: $500
- Adjustments/prepaids: $1,200
- Moving costs: $1,200
Estimated total out-of-pocket at closing: $13,650 (about 1.7% of purchase price) plus any mortgage insurance added to the mortgage if down payment < 20%.
This scenario shows why buyers frequently ask sellers for credits or price reductions. If a buyer is stretched on down payment, their available cash for closing becomes a negotiation lever.
How sellers should use this knowledge to win top offers
-
Price with buyer capacity in mind. If local demand is strong, buyers will absorb closing costs. If demand softens, expect more requests for seller-paid closing credits.
-
Offer flexible closing dates. Buyers juggling sale proceeds and closing day cash will pay a premium for flexibility.
-
Provide a recent inspection or known-repair list. That reduces buyer contingencies and perceived risk, which lowers requests for credits.
-
Consider offering a small credit instead of lowering list price. Credits help buyers cover closing costs without changing appraisal comparables.
-
Market seller-paid incentives smartly. “$2,000 toward closing costs” can move offers faster than a $2,000 price drop because it feels like a real helping hand to the buyer.
Local moving and closing-day checklist for sellers
- Coordinate closing date with moving company and lawyer.
- Collect keys, garages remotes, appliance manuals.
- Provide seller’s affidavit, utility read-outs, and any warranties.
- Leave property broom-clean and take photos for dispute avoidance.
- Provide forwarding address or change-of-address confirmation.
Sellers who deliver a clean, well-documented closing are less likely to face last-minute holdbacks.
Local laws, rebates and special cases in Georgetown / Halton Hills
- First-time homebuyer rebates: Ontario offers rebates for first-time buyers; these can reduce LTT. Sellers should know when buyers might qualify.
- New builds: Builders handle much of the closing paperwork, but HST and rebate rules matter.
- Condos: Status certificates add to buyer costs and timing — expect a slightly longer closing window.
Why local expertise matters — and how to use it
Georgetown’s market behaves differently than Toronto or rural Ontario. Inventory, commute patterns, school zones, and municipal charges change buyer math. A local realtor who understands closing costs and moving logistics saves deals. That’s not marketing fluff — it’s saving thousands for both sides and closing on time.
Tony Sousa is a Georgetown-based realtor who focuses on Closing & Moving strategy in Halton Hills. He helps sellers price their property with buyer closing capacity in mind, negotiates effective seller concessions, and coordinates closing logistics so deals close clean and on time.
Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Closing costs and moving in Georgetown, ON
Q: Who pays closing costs in Ontario — buyer or seller?
A: Mostly buyers pay closing costs (land transfer tax, legal fees, title insurance, adjustments). Sellers typically pay realtor commissions and any agreed seller concessions.
Q: Can sellers contribute to a buyer’s closing costs?
A: Yes. Sellers can agree to provide a credit at closing or reduce the price. That’s common when buyers are cash-constrained or when a home needs repairs.
Q: Do buyers in Georgetown pay municipal land transfer tax?
A: No. Municipal LTT applies in Toronto. Georgetown buyers pay the provincial Ontario Land Transfer Tax, though first-time buyer rebates may reduce it.
Q: How much should I expect for legal fees and title insurance?
A: Expect roughly $800–$2,000 for legal fees and $200–$500 for title insurance, depending on complexity.
Q: Do buyers always pay for home inspections?
A: Yes. Buyers usually pay inspection costs. Sellers can pay for a pre-listing inspection to reduce buyer concerns and speed offers.
Q: What moving costs should sellers expect when coordinating with buyers?
A: Sellers pay their own moving costs. If you offer a rent-back or delayed possession, plan storage or temporary housing costs. Local movers charge peak rates on weekends.
Q: How can a seller make their listing more attractive given buyer closing costs?
A: Price competitively, offer flexible closing dates, provide recent inspections or disclosures, and consider limited closing-cost credits instead of price cuts.
Q: How do mortgage insurance and down payment size affect negotiations?
A: Buyers with less than 20% down will face CMHC premiums added to their mortgage. That increases monthly payments and can reduce their offer power — expect more negotiation.
Q: Who can calculate exact closing costs for a buyer?
A: A local realtor and a real estate lawyer can provide an exact closing cost estimate based on the purchase price, down payment, and closing date.
Final word: Sell smarter, not harder
Closing costs are not an obscure line item — they are leverage in every negotiation. As a seller in Georgetown, ON, anticipate what buyers will pay, where they will push back, and how you can shape the offer environment. If you want a practical, local plan to price, market, and close your home without surprises, reach out to an expert who handles closing and moving logistics daily.
Contact Tony Sousa: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
