Closing Costs: What I need to know
At the time you make your purchase, you need to show you have additional cash totalling 1.5% of the purchase price. If your purchase price was $300,000, your closing costs would be $4,500. This is in addition to your down payment.
CMHC has set the standard for the amount.
It is one of the items that does not require a 90 day history. You will need to prove you have it, through banking or investment statements.
The closing costs include everything that you might need to spend money on at the time of the purchase. That would include, legal fees, new Real Property report, compliance certificate, appraisal costs, home inspection, utility hookup fees/deposits, the fee to move your postal delivery, munchies for the friends who help you move, the moving truck rental, etc.
You get the picture. Some of these items are not going to be needed, because they already exist, are not requested or were part of the purchase agreement.
As a cost saving bonus, make sure your realtor makes it a condition to get the Real Property Report (RPR) and Compliance certificate, before the conditions are removed. It might save everybody plenty of money in the future. Sometimes the reports are sitting in a file that the previous owner eventually throws away (sad, but so easy to avoid by asking). An RPR and Compliance Certificate are not cheap to replace. If you have these 2 items, you might be able to avoid title insurance fees (a $250 savings at the lawyer's office).
RPR's and property surveys are similar. Also, if there are any recent renovations (deck, fence, interior) you may wish to ask for the permits used to complete the work. An older Compliance certificate may not cover recent changes to the property, so the permits will cover any recent updates.