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  • Writer's pictureJen Bedard

Navigating Real Estate Fees and Costs in the Niagara Region

Updated: Apr 30, 2023


Navigating Real Estate Fees and Costs in the Niagara Region

Are you considering buying or selling real estate in the Niagara Region? If so, it's important to understand the various fees and costs associated with the process. In this blog, I'll break down everything from legal fees and closing costs to real estate commissions and property taxes. Plus, I'll explain why it's crucial to work with a knowledgeable sales representative, mortgage broker, and lawyer to ensure a smooth and successful transaction.


Getting keys to your new house

Buyer Fees


Buying a home can be an exciting and rewarding experience, but it's important to be aware of the fees and costs involved. Here are some of the most common fees associated with buying real estate in the Niagara Region:

  1. Legal Fees: These fees cover the cost of hiring a lawyer to handle the legal aspects of your transaction. This can include reviewing contracts, conducting title searches, and registering the property in your name. Legal fees can range from $500 to $2,500, depending on the complexity of the transaction.

  2. Closing Costs: These are the expenses that arise during the final stages of the transaction, such as land transfer taxes, property appraisal fees, and home inspection fees. In the Niagara Region, closing costs can range from 1.5% to 4% of the purchase price of the property.

  3. Deposit: A deposit is a sum of money that the buyer provides as a show of good faith when making an offer on a property. The amount of the deposit can vary, but it's typically around 5% of the purchase price.

  4. Down Payment: The down payment is the amount of money the buyer contributes towards the purchase of the property. In Canada, the minimum down payment is 5% of the purchase price when buying for under $500,000. When purchasing a house for $500-$999,999, the down payment is 5% on the first $500,000, and 10% on the remaining amount. For houses over $1,000,000, the minimum down payment is 20% of the purchase price. In all circumstances a higher down payment can result in a lower mortgage rate and reduced monthly payments.

  5. Mortgage Costs: These fees include things like appraisal fees, mortgage insurance premiums, and legal fees associated with securing a mortgage. The cost of these fees can vary depending on the type of mortgage and the lender.

  6. Administrative Costs: These are the miscellaneous fees associated with buying a property, such as title insurance, survey fees, and utility connection fees. These costs can vary depending on the property and the specific circumstances of the transaction.

  7. Land Transfer Tax: This tax is paid by the buyer when purchasing a property and is based on the purchase price of the property. In Ontario, the land transfer tax is calculated on a sliding scale, ranging from 0.5% to 2.5% of the purchase price.

  8. First-Time Homebuyer Rebate: First-time homebuyers may be eligible for a rebate of up to $4,000 on their land transfer tax. This rebate can help offset some of the costs associated with buying a home.


Seller Fees Explained

Seller Fees


If you're selling your home in the Niagara Region, there are also fees and costs to be aware of. Here are some of the most common fees associated with selling real estate:

  1. Real Estate Commissions: These fees are paid to the real estate agent who represents the seller in the transaction. In the Niagara Region, the standard commission rate is 5%, split between the selling and buying brokerages, although this can vary depending on the specific circumstances of the transaction.

  2. Legal Fees: Just like buyers, sellers also need to hire a lawyer to handle the legal aspects of the transaction. This can include reviewing contracts, preparing the transfer of title, and resolving any issues that may arise during the transaction. Legal fees for sellers can range from $500 to $2,500, and will vary from transaction to transaction.

  3. Administrative Costs: These are the miscellaneous fees associated with selling a property, such as title searches, real estate commission fees, and home staging costs. These costs can vary depending on the specific circumstances of the transaction.

  4. Mortgage Prepayment Penalty: If you have a mortgage on your property, you may be subject to a prepayment penalty if you pay off your mortgage early. The amount of the penalty can vary depending on the terms of your mortgage.

  5. Property Taxes: Sellers are responsible for paying property taxes up until the closing date of the transaction. The amount of property taxes owed will depend on the assessed value of the property and the tax rate in your municipality.


Beautiful Custom New Build Home

Resale Homes vs. New Builds


When it comes to fees and costs associated with real estate transactions in the Niagara Region, there are some differences between buying a resale home and a new build.


With a resale home, you will typically have to pay for a home inspection, as well as any repairs or maintenance that may be required. You may also be subject to higher closing costs if the property is older or in need of significant repairs.


With a new build, you may have to pay for additional fees such as development fees, building permits, and landscaping costs. However, you may also be eligible for incentives and rebates offered by the builder, such as reduced closing costs or upgraded finishes.


Hire Jen Bedard Real Estate for Your Buying and Selling Needs

Working with Professionals


Navigating the fees and costs associated with real estate transactions in the Niagara Region can be complex, which is why it's important to work with experienced professionals. Your sales representative, mortgage broker, and lawyer can help you understand the specific costs associated with your transaction and ensure that you receive a fair deal.


Your sales representative can help you find the right property at the right price, negotiate on your behalf, and guide you through the entire process from start to finish. Your mortgage broker can help you secure the best possible financing for your transaction and ensure that you understand the associated costs and fees, and your lawyer can ensure that all legal aspects of the transaction are handled properly and that your interests are protected.


In conclusion, buying or selling real estate in the Niagara Region can be an exciting and rewarding experience, but it's important to be aware of the fees and costs involved. By working with experienced professionals, you can navigate the complexities of the transaction and ensure that you receive a fair deal. If you're considering buying or selling real estate in the Niagara Region, give Jen Bedard Real Estate a call so we can discuss further.

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