If you’re considering the purchase of a house or condominium in Toronto, it’s essential to be well-prepared for the often-dreaded closing costs. However, don’t worry, because having the right information is your greatest asset. Understanding what expenses you might encounter will allow you to include them in your budget proactively. 

Below, you’ll find a comprehensive list of the typical and significant closing costs associated with buying a home: 

CLOSING COSTS: BEFORE CLOSING

• Deposit (usually 5% of the purchase price, paid within 24 hours of your offer being accepted)

• Property Appraisal ($400 - $500, often paid by the lender)

• Home Inspection ($400 - $700, paid to the home inspector at the time of the inspection)

CLOSING COSTS: ON CLOSING

• Balance of Purchase Price (the purchase price less your initial deposit. Usually the bulk will come from your lender and become your mortgage)

• Legal Fees (amount varies depending on purchase price - approx $1,500 for a $2,500)

• Title Insurance (sometimes included in your legal fees, $250 - $400)

• Mortgage Broker Commission (if applicable, usually paid by the lender)

• Property Survey (if required, $1000 - $2000)

• Ontario Land Transfer Tax (varies depending on the purchase price - Land transfer tax calculator)

• Toronto Land Transfer Tax (varies depending on the purchase price)

• Property Tax Adjustment (reimbursement to Seller of property taxes they paid beyond the closing date)

• HST (generally only applicable on new construction Condos & Houses)

• Tarion Warranty Fees (warranty on new construction Condos & Houses only, not resale)

• Provincial Sales Tax (only applicable on chattels purchased from vendor - amount varies)

• Adjustments for Utilities/Condo Fees/etc (reimbursement to Seller for prepaid utilities, etc)

• CMHC Insurance Premium (insurance premium charge if you have less than 20% down payment)

CLOSING COSTS: AFTER CLOSING

• Moving Expenses ($1000+) *Contact us for our Preferred Movers Rate

• Utility Connection Charges (varies)

• Redecorating and Renovating Costs (varies)

• Immediate Repair and Maintenance Costs (varies)

Armed with this information, you can approach your home purchase with confidence, knowing that you've equipped yourself with the necessary insights to navigate the financial aspects of purchasing a property successfully.