Many first-time buyers focus on the down payment and forget about closing costs. These additional expenses typically range from 1.5% to 4% of the purchase price—a significant amount that needs to be factored into your home buying budget. Beyond the Down Payment On a $600,000 home, closing costs mean $9,000 to $24,000 on top of your down payment. Land Transfer Tax The biggest closing cost in most provinces: Ontario 0.5% on first $55,000 1% on $55,001 to $250,000 1.5% on $250,001 to $400,000 2% on amounts over $400,000 Toronto adds another 2% First-Time Buyer Rebates Ontario: Up to $4,000 rebate Toronto: Additional $4,475 rebate Check your province's specific rates—they vary significantly. Legal Fees Expect to pay $1,500 to $2,500 for: Title search and examination Document preparation Registration of mortgage Closing adjustments calculation Trust account administration Planning Your Budget? Use our Closing Costs Calculator to get a personalized estimate for your purchase, or get pre-approved and we'll help you plan for all your costs. Title Insurance Protects against: Know Your True Costs Closing costs can add thousands to your purchase. Use our calculator to budget accurately. Calculate Costs Title defects discovered later Survey issues Fraud Zoning violations Cost: $300 – $500 Most lenders require it, and it protects you too. Home Inspection Essential but technically optional: General inspection: $400 – $600 Specialized inspections: $200 – $400 each - Radon testing - Mold inspection - Pest inspection - Septic inspection Never skip the inspection on a resale home. Appraisal Fees Often covered by lender If required: $300 – $500 May need specialty appraiser for unique properties Other Costs to Consider Typical Amount Property insurance (required) $1,000 – $2,500/year Moving expenses $500 – $3,000 Utility deposits $100 – $300 Immediate repairs Varies CMHC premium (if applicable) Added to mortgage Sample Closing Cost Calculation For a 0,000 home in Ontario: Amount Land Transfer Tax $8,475 Legal Fees $2,000 Title Insurance $400 Home Inspection $500 Appraisal $0 (lender covered) Total $11,375 First-time buyer with rebate: $11,375 - $4,000 = $7,375 What's Next Get pre-approved and we'll help you plan your complete home purchase budget, including all closing costs. Ready to Close the Deal? Get a complete breakdown of all costs involved in your home purchase. No surprises at closing. Get Full Estimate Call (416) 822-7357 Frequently Asked Questions Planning Your Budget? Use our Closing Costs Calculator to get a personalized estimate for your purchase, or get pre-approved and we'll help you plan for all your costs. Q: Can closing costs be added to the mortgage? A: Generally no. Closing costs must be paid from your own funds at closing. Q: Are closing costs tax-deductible? A: Not for principal residences. Investment properties may be different. Q: What's a closing adjustment? A: Reimbursing the seller for prepaid property taxes, condo fees, etc. pro-rated to closing date. Q: When are closing costs due? A: Your lawyer collects them before closing. Have funds ready about a week before.
