Closing costs can up to 4% to the cost of buying a home in Canada.
These costs, which include home inspection fees, legal fees, and taxes, vary by province and the specific circumstances of each buyer, and many Canadians aren't prepared for them: 13% of first-time buyers admit they didn’t budget for one-time closing cost fees, and 6% confess they didn’t save for anything other than their down payment, according to a new startup, ClosingCosts.ca
Started by the team behind RateHub.ca, the Toronto-based ClosingCosts allows homebuyers to accurately calculate their closing costs, compare quotes from home inspectors and real estate lawyers, and connect with service providers directly.
"Consider the example of homebuyer Sarah who wants to purchase her first home at $503,094 and has $60,000 saved. She’s planning on putting $55,000 down, but ClosingCosts.ca will tell Sarah that her down payment and total closing costs add up to $64,172—she’s $4,172 short (even with first-time homebuyer rebates)," explains the company. "Sarah can actually only afford to make around a $50,000 down payment and must budget the other $10,000 for closing."
The site is currently piloting in the Greater Toronto Area, which will be followed by a country-wide rollout.