Buyer closing costs in Toronto real estate

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:

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)

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–yay!)
  • 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 purchase price – see our Land Transfer Calculator)
  • Toronto Land Transfer Tax (varies depending on 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)

After Close

  • 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.

  1. 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)

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