Budget Beyond the Down Payment.
Your down payment is only part of what you need in the bank on closing day. A handful of one-time costs land around the same time — some fixed, some based on the price of the home and where it sits. Knowing them early keeps closing calm instead of stressful.
What closing costs include
These are the common one-time costs buyers see in Ontario. Not every item applies to every purchase, and amounts vary widely by property and situation.
A tax based on the purchase price, payable to the province — and, for homes in the City of Toronto, a second municipal land transfer tax on top. It is usually the largest single closing cost. First-time buyers may qualify for rebates that reduce it.
Your real estate lawyer's fee to review documents, register the transfer and mortgage, and complete the closing — plus disbursements such as title searches, registration charges and courier costs.
A one-time premium that protects against title defects, fraud and certain survey or zoning issues. Many lenders require it, and lawyers often arrange it as part of closing.
If the lender orders an appraisal to confirm the property's value, there may be a fee. Some lenders cover or waive it in certain situations.
Optional but common — a professional inspection of the home's condition before you commit, typically arranged and paid for by the buyer.
When a purchase requires mortgage default insurance, the premium itself is added to the mortgage, but the provincial sales tax on that premium is due at closing and cannot be rolled into the loan.
Reimbursements to the seller for costs they prepaid past the closing date — for example property taxes or utilities — pro-rated so each party covers only their share of ownership.
A rough budgeting guide
Closing costs are commonly estimated at roughly 1.5%–4% of the purchase price, though this is illustrative only and the real figure varies a great deal — mostly with land transfer tax, which is far higher inside the City of Toronto, and with whether default insurance and its PST apply. A purchase with a low tax burden and no inspection can land well under the range; a higher-priced Toronto home can exceed it.
Treat any percentage as a starting point for planning, not a quote. The closing cost estimator lets you plug in your own numbers for a closer look, and your lawyer's statement of adjustments confirms the exact amounts before closing.
How to plan
Build a closing-cost figure into your budget from the start, alongside the down payment, so nothing is a surprise late in the process.
These costs are due on or just before closing day. Keep the money in an accessible account rather than tied up in investments.
Well before closing, your lawyer prepares a statement showing exactly what is owed and to whom. Review it so the final wire matches your plan.
Closing costs are one-time, but moving, utility hook-ups and first-month expenses arrive around the same time — a small cushion helps.
This page is general information only, not financial advice or a commitment to lend. Taxes, rebates, insurance rules and fees change and depend on your specific property and situation. Final lending decisions rest with the lender and depend on the borrower, property, documentation and lender guidelines.
Related pages
Land Transfer Tax
How Ontario and Toronto land transfer tax work, and where first-time buyer rebates fit in.
Down Payments
Minimum down payments, where the money can come from and how it shapes your purchase.
Calculators
Run the closing cost estimator and other tools to model your numbers.
Title Insurance
What title insurance covers and why it is a standard part of most closings.
Planning your closing budget?
Try the closing cost estimator, then let's confirm the details.