When you purchase real estate in Manitoba, there are a number of legal fees and closing costs required to close that transaction before you get the keys to your new home. What makes up the bulk of these costs are the Land Transfer Taxes payable to the Province; interest adjustment payments to the vendor; and any property tax adjustments. The legal fees portion of the closing costs will be the smallest of them all, while the taxes payable in the Province of Manitoba can add up to quite a bit.
The general rule of thumb for how much your legal and closing costs will be to purchase a home is 2.5-3% of the purchase price. So, in real numbers for instance, if you bought a home for $300,000 then you will mostly likely need $7500 - $9000 to bring to your lawyer to cover all the registration, land transfer taxes, property tax adjustments, etc. to finalize your purchase. These funds are not part of the total mortgage on the home and must be delivered separately to your lawyer.
Your mortgage specialist from Sparrow Team will take the time to review all of these costs with you to give you the numbers you can expect to pay when you go to visit your lawyer. However, for additional information, you can visit www.jmflawcorp.ca, our in-house real estate law firm website, for a full explanation and a breakdown of all these costs.