Your down payment is not the only cash you need on closing day. Budget for the following on top of it, and plan for roughly one and a half to four per cent of the purchase price depending on where you buy.
Land transfer tax
Ontario charges provincial land transfer tax on every purchase, calculated on a sliding scale by price. If the property is inside the City of Toronto, including North York, Scarborough and Etobicoke, the city charges a second municipal land transfer tax of roughly the same amount. This is why the same-priced house in Vaughan or Mississauga closes for thousands less than one in downtown Toronto. First-time buyers can claim a provincial rebate of up to $4,000 and, in Toronto, a municipal rebate of up to $4,475.
Legal fees and disbursements
A real estate lawyer handles title, registration and the money. Expect a fee plus disbursements for searches and registrations.
Title insurance
A one-time premium that protects against title defects and fraud. Most lenders require it.
Adjustments
Property taxes, condo fees or fuel the seller prepaid past the closing date are reimbursed to them on closing.
Mortgage-related costs
If your down payment is under 20 per cent, mortgage default insurance is added to the loan, with the provincial sales tax on the premium due in cash. Appraisal fees may apply.
New construction
HST applies to new builds, with rebates that are usually assigned to the builder; check whether the price is “net of HST rebate”. Tarion enrolment fees and development charge caps also appear on new-home statements.
Then the move
Home inspection, movers, utility hook-ups and immediate repairs. Our buyer guide walks through the whole timeline; ask and we will estimate closing costs for a specific property.
Thinking about a move? Get a request a home evaluation, browse our listings or talk to the team.
