Buying

Closing costs in Toronto: what to set aside beyond the down payment

Buyers budget carefully for the down payment and then get surprised by the invoice a week before closing. Toronto is the expensive case in Canada because the city charges its own land transfer tax on top of Ontario's.

Two land transfer taxes inside the city

A purchase inside Toronto's boundaries pays both the provincial tax and the municipal one. In the 905 you only pay the provincial charge, which is one reason identical prices feel different across the city line.

The rest of the list

Legal fees and disbursements, title insurance, the status certificate on a condo, an appraisal if the lender orders one, and adjustments for prepaid property tax or utilities the seller already covered.

  • Lawyer's fees plus registration and disbursements
  • Title insurance policy
  • Status certificate and review for a condo purchase
  • Property tax and utility adjustments to the seller
  • Home insurance bound before funding

First-time buyer rebates

Ontario and Toronto both offer land transfer tax rebates to eligible first-time buyers. Your lawyer normally applies them at closing so the credit lands against the bill instead of arriving later.

A working rule of thumb

Plan on roughly one and a half to four percent of the purchase price for closing costs depending on price, property type, and rebate eligibility, and confirm the real figure with your lawyer once you have a firm deal.

Frequently asked questions

Can closing costs be added to the mortgage?
Generally no on an insured purchase, though some programs and refinances allow certain costs to be financed. Plan to have them in cash.
Do I pay land transfer tax on a new build?
Yes, and new builds add HST considerations and builder adjustments that resale purchases do not have.
When is the money due?
Your lawyer usually requests certified funds a few days before the closing date.