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OK so here's the thing my Bf just bought a house about 20 minutes outside he city. He paid very little as the house needs some sweat equity put into it. He just got a call from the lawyer today, 4600 dollars for closing costs. Can someone tell me why the costs are so freaking high the bank told us it would only be approximately 1500 to 2000 tops. What did u pay for your closing costs? I mean he's paying 10% of what the house cost to buy!  
 
Edited by Kryslin0680, 2016-04-26 19:28:02

Closing costs can include a lot: unpaid taxes, fees, lawyer costs, land transfer taxes, appraisal fees, etc... What was the breakdown?

He hasn't got a breakdown yet not until tomorrow. But unpaid taxes? How is that his responsibility? And should someone not have told him about this being as he's a first time home owner? Is the down payment included in those fees

for the taxes, most are calculated based on paying the whole year ahead of time. So, since you are buying the house in May, the former owner may have paid the 2/3 of the rest of the tax, which you own him...

The land transfer tax basically doubled a couple years ago so based on a 200,000 would be roughly $2400 for the tax alone

Yeah, the land transfer tax always got me in a real estate transaction.  
 
Like others have said, wait for the breakdown. Usually the lawyer's fees themselves are not too bad, it's all the other things that add up in the bloody hurry.

land transfer tax has not changed in years-it did not double a couple of years ago.

on a $46000 property land transfer tax would be $80. On a $200000 value it is $1600. Transfer and mortgage registration fees are $174.

The land transfer tax is usually what shocks people. The the portion of the taxes plus all the little extra's that the bank requires. The lawyers fees are likely around the $1000-$1500 mark. They will have it all broken down for you when you go in.

If you got a mortgage on it they would also want the 5% down payment in that.

Was it lawyers fees or total closing costs? 5 years ago when we bought our house lawyers fees were about $2000 but everything else included for closing costs , which we paid at the lawyers office, totalled $10,000. so I don't think your BF is paying too much.

We thought the 4600 was just lawyers fees the house is vacant and was for closed on so I wasn't sure about taxes but we were hoping the down payment would be included in that thx for ur help peeps  

The 4600 will be all fees together. The bank requires the taxes to be current so you must pay your portion for the year. Plus survey or title insurance, tax certificate from city, all kinds of requirements. The big cost will be land transfer tax. Also don't forget to get your fire insurance in place before seeing the lawyer

Manitoba has one of the highest Land Transfer costs in the country for home buyers. You can thank the Provincial Governments for these costs. Your lawyer has to pay the fees out as well as all the land title costs.  
 
Once you see the breakdown, it might all make sense why the fees seem high. It's not just the cost of the lawyer normally, but all the other things they must pay out depending on the individual situation. Every sale is different.  
 
 
 
Edited by Kellye, 2016-04-27 10:06:03

There's been some good info here re the land transfer tax that applies on sales.  
 
A couple of links that might also be helpful...  
 
An online calculator to determine what amount applies based on value of the sale:  
https://www.ratehub.ca/land-transfer-tax-manitoba  
 
The province's page that shows current rates:  
https://www.gov.mb.ca/finance/other/landtransfertax.html

Where is the value when a $250000 house is taxed at $2720 and a $400000 house is taxed at $5720. Say they are both sitting on 55 foot lots where is the additional #3000 difference in value. Where are the costs for this tax any different?  
 
Nothing but a tax grab. No wonder the high priced houses aren't selling.

sent you a pm

It wasn't so much the lawyer fees... It was everything else, the lawyer fees were only 600 bucks... Was just kinda frustrated and worried I guess thanks eBrandon for all your info

About taxes remember the mill rate. EVERYBODY pays the same rate, if your house has a higher estimated value you pay the mill rate times your value. That is why the 1800 sf house in the east end pays a pittance compared to one on wichester