You have the down payment sorted. You know roughly what your mortgage payment will look like. Then there’s one cost, nobody gives you a straight number on.
Closing costs.
Some sites say 1.5%. Others say 4%. A friend mentions a tax on insurance that caught them off guard. None of it tells you what you will actually owe in Grimsby.
Let’s fix that.
TL;DR: What to Budget For
On top of your down payment, plan for 1.5% to 4% of the purchase price in closing costs. That covers:
- Land transfer tax (the biggest one)
- Legal fees and title insurance
- Home inspection, appraisal, and home insurance
- Property tax and utility adjustments
- PST on mortgage insurance, if you put less than 20% down
Five categories. No surprises.
How Closing Costs Get Paid
Most buyers picture closing costs as one big bill that lands on closing day. It is not.
Closing costs are a handful of smaller payments, spread out over a few weeks, paid to different people. Your inspector. Your lawyer. Your insurance broker. The government.
Most of the total gets paid in pieces, not in one go.
Land Transfer Tax
This is the biggest closing cost in Ontario.
It is calculated in brackets, similar to income tax. Each slice of the purchase price gets taxed at its own rate. On a $700,000 Grimsby home, you are looking at roughly $10,475.
Grimsby buyers only pay the provincial tax. The municipal land transfer tax is a Toronto-only rule, so it does not apply here.
If you are a first-time buyer in Ontario, you can claim a rebate of up to $4,000. Your lawyer applies it directly to the bill on closing day. The current brackets and full rebate rules live on the Ontario government’s Land Transfer Tax page.
Legal Fees and Title Insurance
Every Ontario home purchase needs a real estate lawyer.
They review your offer, register the title in your name, talk to your lender, and handle the closing-day money. Most lawyers charge a flat fee plus disbursements, which are small pass-through costs like title searches and registrations.
For a typical Grimsby purchase, budget $1,500 to $3,000 all in. Title insurance is usually bundled into that total. Call one or two local lawyers now and ask for a written quote so you can pencil in a real number.
Inspection, Appraisal, and Insurance
Three smaller costs that show up before closing day.
A home inspection in Grimsby runs $400 to $700, paid directly to the inspector typically right after the home inspection is completed. Your appraisal might be covered by your lender or charged to you, so ask your mortgage broker which applies. Home insurance is required before your lender will release the mortgage money. Freehold homes pay a full policy. Condo buyers pay less because the building itself is insured by the corporation.
Property Tax and Utility Adjustments
This one confuses almost every first-time buyer, but it is simple.
If the seller has already paid property taxes for part of the year that overlaps with your ownership, you reimburse them for your share. Same goes for any pre-paid utilities or condo fees.
Your lawyer calculates it all on the statement of adjustments, which you will see a few days before closing.
Mortgage Costs (Including the One People Forget)
If you put less than 20% down, your mortgage has to be insured through CMHC or a private insurer.
The good news: the insurance premium itself gets added to your mortgage balance, so you do not pay it in cash.
The catch: Ontario charges 8% PST on that premium, and the PST is due on closing day in cash. On a typical Grimsby mortgage, that can be a few thousand dollars.
Ask your mortgage broker early: “If I put less than 20% down, how much PST will I owe at closing?” That single number can change your whole budget.
Smaller mortgage costs to keep on your radar: the appraisal (if not bundled), the lawyer’s registration fee, and a small interest adjustment if your closing date does not line up with your first payment.
Your Closing Timeline at a Glance
Here is the order things happen, so nothing catches you off guard.
- Offer accepted. Your deposit goes into trust.
- First week. Inspection and appraisal.
- Two to three weeks before closing. Home insurance in place.
- Week before closing. Your lawyer sends the statement of adjustments.
- Closing day. Your lawyer settles the land transfer tax, legal fees, adjustments, and any PST owing.
Coming Home to Grimsby
Closing costs are the part of the journey nobody really remembers.
What you will remember is the morning the keys land in your palm, the first walk through rooms that are now yours, and the slow realization that this place really is home.
Grimsby is that kind of place. Mornings by the lake. Neighbours who wave. A pace of life that feels like it was waiting for you.
When you are ready to talk through your move, The Lynn Fee Team is here to help you walk through every step.
See Grimsby Homes That Fit Your Real Budget