Breaking Down Closing Costs in Toronto: What Buyers Often Overlook
When budgeting for a new home in Toronto, most buyers focus on the down payment and mortgage payments. But closing costs those extra fees due at the end of the transaction—can add up quickly. If you’re not prepared, they can catch you by surprise. Here’s what GTA buyers should know.
Land Transfer Tax (LTT)
This is often the biggest closing cost in Toronto. Ontario charges a land transfer tax, and if you’re buying in the City of Toronto itself, you’ll also pay a municipal land transfer tax. Together, this can add tens of thousands to your upfront expenses. First-time buyers may qualify for rebates, but it’s important to budget for this cost early.
Legal Fees and Title Insurance
Hiring a real estate lawyer is essential to review contracts, handle registration, and transfer funds. Legal fees in the GTA typically range from $1,500 to $3,000. Title insurance is another must-have, protecting you against potential ownership disputes or fraud.
Home Inspections and Appraisals
If not covered by the seller, you’ll want to budget a few hundred dollars for a home inspection. Your lender may also require an appraisal to confirm the property’s value, usually another $400–$600.
Other Costs Buyers Forget
Adjustments for prepaid property taxes or utilities
Moving expenses
Mortgage default insurance (if your down payment is less than 20%)
The takeaway: Closing costs in Toronto typically run 3–5% of your purchase price. By planning ahead, you’ll avoid last-minute stress and ensure a smoother closing day.
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