What Every Bowmanville Buyer Should Know About Closing Costs

Are You Prepared for the Closing Costs When Buying a Home in Bowmanville?

Many homebuyers in Bowmanville, Clarington, and Durham Region focus on saving for their down payment, but closing costs can catch them off guard. These additional expenses—due at or before the finalization of your home purchase—can add up to 1.5% to 4% of the home’s purchase price.

At Boyle Team Real Estate, led by Marlene Boyle, we guide buyers through the Bowmanville homebuying process, ensuring they understand all costs involved before making one of the biggest purchases of their lives. This guide breaks down common closing costs, how much to budget, and ways to reduce expenses.

1. What Are Closing Costs?

Closing costs are the fees and expenses buyers must pay to finalize a home purchase. These costs are not included in the home’s price and are due at closing (the date the home officially transfers to you).

💡 Key Takeaway: In Ontario, closing costs typically range from 1.5% to 4% of the purchase price. On a $700,000 home in Bowmanville, that means you should budget $10,500 to $28,000 in additional expenses.

2. Breakdown of Closing Costs for Bowmanville Buyers

A. Land Transfer Tax (LTT) – The Biggest Closing Cost

What Is It?
Land Transfer Tax is a provincial tax paid by the buyer when purchasing real estate in Ontario.

How Much Does It Cost?
Ontario’s LTT is calculated based on the purchase price:

• 0.5% on the first $55,000
• 1.0% on the portion from $55,000 – $250,000
• 1.5% on the portion from $250,000 – $400,000
• 2.0% on the portion from $400,000 – $2,000,000
• 2.5% on anything above $2,000,000

Example: LTT for a $700,000 Home in Bowmanville

• First $55,000 = $275
• Next $195,000 = $1,950
• Next $150,000 = $2,250
• Remaining $300,000 = $6,000
  Total LTT: $10,475

💡 First-Time Buyer Tip: Ontario offers a land transfer tax rebate of up to $4,000 for eligible first-time buyers!

B. Legal Fees & Disbursements

Why Do You Need a Lawyer?
A real estate lawyer ensures your home purchase follows legal regulations, handles title transfers, and protects your interests.

Cost in Bowmanville:

• Real estate lawyer fees: $1,500 – $2,500
• Title insurance (protects against fraud & title defects): $250 – $500
• Disbursements (fees for title searches, deed registration, etc.): $300 – $600

💡 Pro Tip: Work with an experienced real estate lawyer to ensure a smooth closing process.

C. Home Inspection Fees

While not a mandatory closing cost, a home inspection is highly recommended. It helps uncover hidden defects before finalizing the purchase.

Cost of a Home Inspection in Bowmanville:

• Standard Home Inspection: $400 – $600
• Specialized Inspections (radon, mold, sewer, etc.): $200 – $500 extra

💡 Pro Tip: If issues are found, you can negotiate repairs or a price reduction with the seller.

D. Appraisal Fees

If you’re getting a mortgage, lenders may require an appraisal to confirm the home’s value.

Cost of an Appraisal in Ontario:

• $350 – $600 (sometimes covered by lenders)

💡 Pro Tip: Ask your mortgage broker or lender if they cover appraisal fees.

E. CMHC Mortgage Insurance (If You Put Less Than 20% Down)

Buyers who put down less than 20% are required to purchase CMHC mortgage insurance.

CMHC (Canada Mortgage and Housing Corporation) Insurance Premiums:

• 5-9.99% down payment → 4.00% of mortgage amount
• 10-14.99% down payment → 3.10% of mortgage amount
• 15-19.99% down payment → 2.80% of mortgage amount

💡 Example: If you buy a $600,000 home with 10% down ($60,000), your CMHC premium would be $16,740 (3.10% of $540,000).

F. Property Tax & Utility Adjustments

If the seller prepaid property taxes or utilities, you must reimburse them for the remaining balance.

💡 Pro Tip: Your lawyer will calculate adjustments before closing to avoid surprises.

G. Moving Costs

Don’t forget the cost of actually moving into your new home!

Typical Moving Costs in Bowmanville:

• Professional movers: $1,000 – $2,500 (depends on distance & home size)
• Rental truck: $100 – $300 per day
• Storage unit (if needed): $150 – $500 per month

💡 Pro Tip: Book movers early—especially during peak moving seasons like summer.

3. How to Reduce Your Closing Costs

Take Advantage of First-Time Buyer Rebates

✔ Ontario Land Transfer Tax Rebate → Up to $4,000 off LTT for first-time buyers.
✔ Home Buyers’ Plan (HBP) → Withdraw up to $60,000 from your RRSP tax-free.

Negotiate with Sellers

✔ Request the seller covers some closing costs as part of the offer.
✔ Ask for an extended closing date to save on temporary housing/moving expenses.

Compare Lender Fees

✔ Shop around for the best mortgage rates & terms.
✔ Ask if your lender covers appraisal or legal fees.

4. Work With Boyle Team Real Estate for a Smooth Home Purchase

At Boyle Team Real Estate, we guide homebuyers through every step of the Bowmanville homebuying process, ensuring they understand all costs before closing.

Why Work With Us?

✅ Expert guidance on budgeting for closing costs.
✅ Access to trusted mortgage brokers & real estate lawyers.
✅ Negotiation strategies to help reduce your expenses.
✅ A stress-free homebuying experience from start to finish.

📞 Looking to buy a home in Bowmanville or Durham Region? Contact Marlene Boyle and the Boyle Team today to get started!

Final Thoughts: Budget for Closing Costs to Avoid Surprises

✔ Closing costs typically range from 1.5% to 4% of the purchase price.
✔ The biggest cost is the Land Transfer Tax (first-time buyers can get a rebate).
✔ Other costs include legal fees, home inspections, appraisals, and property tax adjustments.

Planning ahead ensures a smooth homebuying experience. Let Boyle Team Real Estate help you navigate your purchase and save on closing costs!

📞 Need expert guidance? Contact us today!