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. Know Your True Costs Closing costs can add thousands to your purchase. Use our calculator to budget accurately. Calculate Costs Title Insurance Protects against: 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.
