Closing Costs for Buyers in Toronto: The Full List

Buyers budget the down payment and forget the closing costs, then discover the shortfall two weeks before closing. In Toronto specifically, the biggest line item catches people off guard because it's charged twice.

Land transfer tax — provincial and municipal

Every Ontario purchase pays provincial land transfer tax on a graduated scale. Purchases inside the City of Toronto pay a municipal land transfer tax on top, on a similar scale — effectively doubling the bill. On a typical Toronto purchase this runs well into five figures and is due on closing, in cash, not financeable.

First-time buyer rebates

• Provincial first-time buyer rebate of up to $4,000.
• Toronto municipal rebate of up to $4,475 for eligible first-time buyers.
• Both require you to have never owned a home anywhere, and your spouse's ownership history counts too.
• Your lawyer typically claims the rebate at closing so you never front the money — confirm this in advance.

The rest of the list

• Legal fees and disbursements: roughly $1,500-$3,000 for a standard purchase.
• Title insurance: a few hundred dollars, usually arranged by your lawyer.
• Home inspection: $400-$700, ideally before you offer.
• Appraisal, if your lender requires one and doesn't cover it.
• Mortgage default insurance premium if your down payment is under 20% — added to the mortgage, but PST on the premium is payable in cash at closing in Ontario.
• Property tax and utility adjustments reimbursing the seller for prepaid amounts.
• Status certificate review for a condo purchase.
• Moving costs, utility hookups, insurance, and immediate repairs.

A workable budgeting rule

Set aside 3-4% of the purchase price for closing costs on a Toronto purchase, or 1.5-2.5% outside the city where there's no municipal land transfer tax. Ask your lawyer for a written estimate once you have a firm deal — and remember that lenders will want to see the closing funds are actually there.