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If you’re planning to buy a house or condo in Toronto, don’t forget to be prepared for the dreaded Closing Costs. Never fear, knowledge is power! Know what you might have to pay for, so you can work it into your budget ahead of time.

Here is a list of the most common and important closing costs when 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 inspection company 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 $1,800 for a $500,000 purchase)
  • Title Insurance (sometimes included in your legal fees, $250-$400)
  • Mortgage Broker Commission (if applicable, usually paid by the lender)
  • Property Survey (if required – $1,000-$2,000)
  • Ontario Land Transfer Tax (varies depending on the purchase price – see our Land Transfer Calculator)
  • Toronto Land Transfer Tax (varies depending on the purchase price – see our Land Transfer Calculator)
  • Property Tax Adjustment (reimbursement to Seller of property taxes they paid beyond the closing date)
  • HST (generally only applicable on new construction condos and houses)
  • Tarion Warranty Fees (warranty on new construction condos and houses only, not resale) – click here to estimate Tarion Fees
  • 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 charged if you have less then 20% down payment – click here to estimate CMHC insurance)

Closing Costs: After Closing

  • Moving Expenses ($1,000+)
  • Utility Connection Charges (varies)
  • Redecorating and Renovating Costs (varies)
  • Immediate Repair and Maintenance Costs (varies)

Click here if you’d like to calculate your closing costs.

Comments

  2. Fiona says:

    Dear BREL Team,

    Would like to seek your advice for a Non-Residence (who are holding Canada citizenship and passport but not living in Canada) who wants to buy a 2nd hand condo in TORONTO:

    1) Vancouver is applying 15% Surtax on Transfer of Land (pay by the buyer who is a Foreigner). How to define a ‘Foreigner’ buyer? Am I a ‘Foreigner’ since I am a non-resident?

    2) This 15% Surtax is it only paid once when I buy the condo? When I sell it out in future, no need to pay again, right?

    3) Even it has been implemented in Vancouver only, but will apply to Toronto soon?

    4) Is it 25% of my income gained from the rental annually, is based on Gross OR Net rental gained?

    5) Besides this annual rental income tax, what else of income tax or other tax would be levied to me as a Non-resident?

    Regards,
    Fiona (from Hong Kong)

    • Melanie Piche says:

      You’d have to talk to a local mortgage broker in order to find out if you qualify. We sell real estate in Toronto and don’t have any connections in Ridgetown.

  4. billy leung says:

    Hi

    I would like to ask a question that if I am currently owned a house with my mother, and I want to buy another house under my name. is it possible? if it is, what are the associate cost or extra cost that I need to pay?

    Billy

    • Melanie Piche says:

      In Ontario, anyone can own multiple homes…you’d need to talk to a bank to understand the costs of owning/a mortgage. Your lawyer and accountant should be able to tell you if there are any additional costs given your personal situation.

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