Toronto Closing Costs Explained: What Buyers Really Pay

Beyond the Purchase Price

When budgeting for your Toronto home purchase, the price tag is just the beginning. Closing costs typically add 1.5% to 4% to your total outlay. This guide breaks down every cost so you can budget accurately.

Land Transfer Tax: The Big One

Ontario levies land transfer tax on all property purchases. In Toronto, you pay both provincial and municipal (Toronto) land transfer tax—doubling this expense.

Provincial Land Transfer Tax Rates

• 0.5% on first $55,000
• 1.0% on $55,000 to $250,000
• 1.5% on $250,000 to $400,000
• 2.0% on $400,000 to $2,000,000
• 2.5% on amounts over $2,000,000

Toronto Municipal Land Transfer Tax Rates

• 0.5% on first $55,000
• 1.0% on $55,000 to $250,000
• 1.5% on $250,000 to $400,000
• 2.0% on $400,000 to $2,000,000
• 2.5% on amounts over $2,000,000

Example Calculations

$800,000 home in Toronto:

• Provincial LTT: $12,475
• Toronto Municipal LTT: $12,475
• Total LTT: $24,950

$1,200,000 home in Toronto:

• Provincial LTT: $20,475
• Toronto Municipal LTT: $20,475
• Total LTT: $40,950

First-Time Buyer Rebates

First-time home buyers receive significant rebates:

• Provincial rebate: Up to $4,000
• Toronto rebate: Up to $4,475
• Total savings: Up to $8,475

To qualify, you must never have owned a home anywhere in the world, and the property must be your principal residence.

Legal Fees

Real estate lawyers handle the transfer of ownership:

• Legal fees: $1,200 - $2,000
• Disbursements: $300 - $500
• Title insurance: $250 - $500
• Total: $1,750 - $3,000

Shop around, but don't choose solely on price. An experienced real estate lawyer prevents costly problems.

Home Inspection

While not technically a closing cost (you pay this before closing), inspections are essential:

• Standard home inspection: $400 - $600
• Condo inspection: $300 - $400
• Additional tests (radon, mold): $100 - $300 each

Appraisal Fees

Your lender requires an appraisal to confirm property value:

• Often included in mortgage arrangement
• If charged separately: $300 - $500

Mortgage Default Insurance (CMHC)

If your down payment is less than 20%, you must pay mortgage default insurance:

• 10-14.99% down: 3.10% of mortgage
• 5-9.99% down: 4.00% of mortgage

This is usually added to your mortgage amount but is still a cost to consider.

CMHC Example

$800,000 purchase with 10% down ($80,000):

• Mortgage: $720,000
• CMHC premium (3.10%): $22,320
• Total mortgage: $742,320

Property Insurance

Lenders require proof of home insurance before closing:

• Annual premium: $1,200 - $3,000+
• Due at closing: First year's premium

Condo-Specific Costs

When buying a condo, additional costs include:

• Status certificate review: $100 - $300 (lawyer fee)
• Status certificate: $100 (if not included)
• Reserve fund contribution adjustment: Varies

Moving Day Costs

Don't forget moving expenses:

• Professional movers: $800 - $2,500
• Storage if needed: $150 - $400/month
• Utilities setup: Some require deposits

Complete Closing Cost Example

$900,000 Toronto Home Purchase:

This equals approximately 3.9% of purchase price—plus your down payment.

Budgeting Tip

Set aside 4% of your purchase price for closing costs, plus your down payment. It's better to overestimate and have funds left over than to scramble for last-minute cash.

Questions about budgeting for your Toronto home purchase? Contact us for personalized guidance.