Closing Costs
There are several items that need to be attended to prior to closing a real estate transaction. Your lawyer will provide a complete overview of these charges but as a guideline in your initial planning stage, budget about 2% of the purchase price to cover charges over and above the purchase price of the home. This covers things like your legal fees, land transfer tax and home inspection among other things.
The largest portion of the closing cost is most often land transfer tax, but for first time home buyers, a break in the land transfer tax is possible.