Closing Costs to Budget for in Manitoba

Your down payment gets most of the attention, but it isn't the only money you'll need on possession day. Closing costs in Manitoba typically add up to somewhere between 1.5% and 4% of the purchase price, depending on the home and your financing. Here's what to plan for.

Land transfer tax

Manitoba charges a land transfer tax when a property changes hands. It's calculated on a sliding scale. The first portion of the price is exempt and the rate rises in steps, topping out at 2% on the amount above $200,000. On a typical Winnipeg home this is the largest single closing cost, so it's worth running the numbers before you set your budget.

Other costs to expect

• Legal fees and disbursements for your lawyer.
• Title registration and search fees.
• Home inspection, and an appraisal if your lender requires one.
• Title insurance, if your lender or lawyer recommends it.
• Property tax and utility adjustments with the seller.
• Moving costs, utility hookups and home insurance from day one.

If you're buying with less than 20% down

Mortgages with a smaller down payment require mortgage default insurance. The premium is usually added to your mortgage, but provincial sales tax on that premium has to be paid in cash at closing in Manitoba. This is a cost many first-time buyers don't expect.

Putting it together

Once you have an accepted offer, your lawyer can give you a detailed statement of adjustments. Until then, budgeting at the higher end of the range keeps you safe and gives you room for small things, like a fresh set of locks, that come with every new home.