Closing Costs

[RosePellar]

I have been trying to figure out what amount to factor in for closing costs in doing my analysis without success. I got some numbers from a real estate office but not really sure about them since I am sure part of it (LTT has a formula). Should I just be using the REMA software in trying to analyze a property?

 

[Tibo]

QUOTE (RosePellar @ Mar 18 2009, 08:52 PM) I have been trying to figure out what amount to factor in for closing costs in doing my analysis without success. I got some numbers from a real estate office but not really sure about them since I am sure part of it (LTT has a formula). Should I just be using the REMA software in trying to analyze a property?


I was told by a mortgage broker that 1.75% of the purchased price should be a good rule of thumb.

 

[Nir]

Just add the following: your lawyer fees + land transfer tax + appraisal fee if done by bank and charged minus (usually minus) rents and property tax adjustments like last month rent + interest that you get! maybe few other minor things I forgot but the main are lawyer + land transfer (in addition to your down payment of course). Good luck.

 

[lanedry77]

QUOTE (Tibo @ Mar 18 2009, 07:29 PM) I was told by a mortgage broker that 1.75% of the purchased price should be a good rule of thumb.
This isn`t an accurate way of calculating, since the closing costs on a $1,000,000 single family house would be nearly identical as on a $200,000 single family house, but by using a percentage the numbers get skewed ($17,500 versus $3,500).



David.

 

[DOZAH]

Toronto is very close to 3% of purchase price (larger land transfer tax).
York Region is very close to 2% of purchase price.

These close estimates include Lawyers fees, title insurance and land transfer tax.
If you use these figures I`m quite confident you`ll be pretty close on guestimate.

 

[lanedry77]

QUOTE (DOZAH @ Mar 18 2009, 11:49 PM) These close estimates include Lawyers fees, title insurance and land transfer tax.
Right, my mistake everyone - I forgot about that nasty tax in most of the country.


David.

 

[GarthChapman]

QUOTE (RosePellar @ Mar 18 2009, 05:52 PM) I have been trying to figure out what amount to factor in for closing costs in doing my analysis without success. I got some numbers from a real estate office but not really sure about them since I am sure part of it (LTT has a formula). Should I just be using the REMA software in trying to analyze a property?

In the REMA Analyzer you enter the individual numbers and REMA will know which ones make up the Acquisition costs and down-payment, and give you the `total cash required to close`.