Closing Costs Guide
Land transfer tax, legal fees, adjustments — budgeting the 3–5% beyond the purchase price.
The purchase price is not the whole price. Budget roughly 3–5% of the purchase price on top of your down payment for closing costs in Toronto. Here is where it goes.
Land transfer tax
Buyers in Etobicoke pay two land transfer taxes: provincial (Ontario) and municipal (Toronto). Together they are the largest closing cost — on a $1.5M purchase, roughly $53,000 combined. First-time buyers qualify for rebates of up to $4,000 provincially and $4,475 municipally. Use our land transfer tax calculator for your exact number.
Legal fees and disbursements
Expect $1,800–$3,000 for a straightforward purchase, covering your lawyer’s fee, title searches, registration, and disbursements. Title insurance — usually $400–$900, arranged by your lawyer — protects against title defects, survey issues, and fraud.
Adjustments
On closing you reimburse the seller for anything prepaid past the closing date — property taxes, utilities on flat-rate billing, a filled oil tank. Your lawyer itemizes these on the statement of adjustments.
Other costs to plan for
- Home inspection. $400–$700, paid during the conditional period.
- Appraisal. Often covered by the lender; budget $300–$500 in case.
- Mortgage insurance. Required if your down payment is under 20%; the premium is added to the mortgage but the PST on it (8% in Ontario) is due in cash at closing.
- Moving. $1,500–$4,000 for a local professional move, more at month-end.
- HST. Resale homes are exempt. New construction includes HST in the price but assignment and rebate rules are worth a conversation with your lawyer.
When we work on a purchase together, we will build this budget with you before you offer — so the statement of adjustments never comes as a surprise.