One of the most common surprises for first-time buyers - and even repeat buyers who haven't transacted in a while - is the total cost of closing. The down payment gets most of the attention, but the costs that arrive on closing day can add up to tens of thousands of dollars beyond it. Here is a complete breakdown of what to expect.
Rule of thumb: Budget 1.5–2% of the purchase price for closing costs, beyond your down payment. For a $750,000 home, that means setting aside $11,000–$15,000. The single largest variable is whether you are purchasing in the City of Toronto.
Land Transfer Tax
This is typically the largest closing cost. Ontario buyers pay a provincial LTT; buyers within the City of Toronto pay an additional municipal LTT on top. First-time buyers qualify for rebates. See our detailed LTT explainer for the exact brackets and calculations, and use our free calculator to estimate your amount.
Legal fees
You need a real estate lawyer to complete any property purchase in Ontario. Legal fees for a standard resale purchase typically range from $1,500 to $2,500, plus disbursements. Disbursements are third-party costs your lawyer pays on your behalf: title search, registration fees, title insurance, couriers, and so on. Budget $3,000–$4,500 in total for legal fees and disbursements on a standard resale transaction. Costs vary by lawyer and transaction complexity - get a written quote.
Title insurance
Title insurance protects you (and your lender) against defects in title, fraud, survey issues, and certain zoning violations. It is a one-time premium paid at closing, typically $300–$500 for a standard residential purchase. Your lawyer arranges this and it is virtually always recommended.
Home inspection
If your offer includes a home inspection condition, you pay the inspector directly. A standard inspection on a detached home in the GTA typically costs $450–$700. Condo inspections are generally less, as there is less to inspect. Townhomes and homes with additional structures (garages, pools, additional units) may cost more.
Property tax and utility adjustments
On closing day, your lawyer will calculate adjustments for property taxes and, in some cases, prepaid utilities. If the seller has paid property taxes in advance for the period after your closing date, you reimburse them for that portion. This amount varies and is calculated precisely in the statement of adjustments. Budget a few hundred to a few thousand dollars depending on timing.
CMHC mortgage insurance premium (if applicable)
If your down payment is less than 20%, your mortgage is subject to CMHC mortgage default insurance. The premium is added to your mortgage principal rather than paid at closing, but it does increase the total amount you owe. See our CMHC explainer for the exact rates.
Moving costs
A professional moving company for a local move within the GTA typically costs $800–$2,500+ depending on the size of the move and whether you are moving from a house or a condo with elevator access. Long-distance moves cost significantly more. Get quotes from multiple movers and book early - weekends and end-of-month dates fill up fast.
Immediate post-purchase expenses
Most buyers incur some immediate costs after taking possession: changing locks, purchasing window coverings, minor repairs identified during the inspection, appliances if not included, and so on. These are easy to underestimate. Reserve at least $2,000–$5,000 for the first few months of ownership.
The most important step is to add all of these up early in your planning process - before you start making offers - so there are no surprises on closing day. If you'd like to walk through the numbers for your specific situation, reach out to us. We do this with every buyer we work with.
