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Closing costs in Arizona

Looking at a place in the desert? You’ll want to know how much to expect in closing costs if you are buying in Arizona.

Arizona is a popular destination for Canadian snowbirds. In fact, 66% of international buyers in Arizona are Canadians. If you’re considering buying real estate in the US, part of your expenditure will include closing costs– expect to pay between 1.21% and 1.82% of the property purchase price.

Average closing costs in Arizona

Closing costs are the administrative and legal fees a property buyer will incur when finalizing a home sale. Property insurance, prepaid utility bills and title insurance are a few of the expenses that are typically included in closing costs. It’s important to estimate closing costs because they can be several thousand dollars.

The average closing cost in Arizona is US$3,631 after taxes (as reported by ClosingCorp). This is approximately 1.21% to 1.82% of the final home sale price.

The average home price is between US$200,000 and US$300,000 throughout Arizona. If you purchase a home in that range, your closing costs will be between US$2,421 and US$5,447.

Other fees

Common closing costs for Arizona home buyers include loan origination fees, credit report fees, home appraisal fees, home inspection fees, escrow fees, flood certification, title search, insurance, postage, courier fees and survey fees. Not all of these costs are predictable, so be sure to keep extra cash handy.

Arizona doesn’t have a land transfer tax. In addition, Canadians are not charged additional fees for being a foreign buyer, unlike states such as Florida.

Down payment and exchange rates

Canadians snowbirds in Arizona typically need to have a down payment between 25% and 30% of the purchase price if they’re working with a US lender.

While many Canadian lenders do not offer mortgages for US property because it is outside of their jurisdiction, some Canadian lenders do operate in the US. There is an opportunity to borrow with a Canadian lender if it operates in the state where you want to purchase property.

Your down payment will likely be payable in US dollars regardless of whether you work with a US or Canadian lender, so be mindful of the exchange rates and the additional cost that comes with it.

Who pays closing costs in Arizona?

In the state of Arizona, buyers and sellers split the cost. A breakdown of who pays for what can be found below.

For the buyer

Lender title policy premium (for new loans)Varies
Other new loan charges (i.e. origination fees)Varies
Fees related to assumption of existing loanVaries
Escrow fee (one-half)Varies
Flood certificationUS$10
SurveyUS$300 to US$400
Document preparationUS$25 for credit report, additional costs may apply
Notary feesVaries
Recording charges for all documents in buyer’s nameUS$30 to US$60
Homeowners association transfer fee (one-half)US$200 to US$250
Home warranty premium per contractVaries
Hazard insurance premium for first yearVaries

For the seller

Owner’s title insurance premiumVaries
Real estate agent commissionVaries
Escrow fee (one-half)Varies
Financing fees related to mortgage held by sellerVaries
Termite inspection and repairs per contractUS$532 average in Arizona
Home warranty premium per contractVaries
Homeowners association transfer fee (one-half)US$200 to US$250
Any judgments, tax liens against the sellerVaries
Recording charges to clear all documents of record against the sellerUS$30 to US$60
Prorated property taxes plus delinquent taxesVaries
Any unpaid homeowners association duesVaries
Any bonds or assessments per contractVaries

Who pays for title insurance in Arizona?

The seller usually pays for title insurance for a home purchase in Arizona.

How do Canadians get a mortgage for a US property?

You may need to work with a US lender to secure a mortgage for a property in the US. Canadian lenders generally don’t have jurisdiction in the US, which means they can’t finance a mortgage there. The only exception is Canadian lenders that operate in the US as well. Be sure to determine what their jurisdiction is before submitting an application.

If you can’t find a Canadian lender to finance your US property purchase, don’t worry. Since Arizona is a popular real estate purchase hub for Canadian snowbirds, many local lenders are willing to work with you.

What to know about buying a condo or co-op in Arizona


There are some limitations when buying a condo in Arizona. Lenders require that at least 51% of condo units in a complex are not rental properties. In addition, lenders will not finance a mortgage if more than 10% of the units in a complex are owned by a single person.

Condo owners are required to pay condo fees, which is the cost to maintain the property and amenities. Arizona condo owners are also required to pay homeowners association fees. Both these costs are subject to fluctuations, which could drastically affect the operating cost of your property.


When you buy a co-op, you don’t own real estate. Instead, you become a shareholder of the corporation that owns the building. A co-op is basically a nonprofit organization with a board of directors and each resident is a shareholder in the property. The idea of a co-op is to build an engaged and passionate community.

To purchase a co-op, you don’t need a mortgage. Rather, you will need enough funds to purchase shares in the co-op. As a Canadian foreign buyer, it can be more challenging to find financing for this kind of purchase because there won’t be security tied to the loan, which would usually be the property.

In addition to the cost of financing and closing costs, you are required to pay prorated costs to maintain the building. These include property taxes, mortgage payments, heating, water, insurance and staff wages.

Bottom line

Canadian snowbirds in Arizona benefit from lower closing costs compared to other popular states. Closing costs are difficult to estimate, but it’s a worthwhile process. Once you understand the closing costs, don’t forget to factor in exchange rates as the closing costs may be payable in US dollars. To keep your closing costs low, consider working with an expert.

Frequently asked questions

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