Closing costs every Ontario home buyer should budget for
Nadeem Khan, Broker
Your down payment is only part of the picture. Here are the closing costs to plan for before you buy.
When you budget for a home, plan for more than the purchase price and down payment. Closing costs are paid on or before closing day and can add up quickly.
Common closing costs
- Land transfer tax: Ontario land transfer tax applies to every purchase, and properties in the City of Toronto also pay a municipal land transfer tax. First-time buyers may qualify for refunds.
- Legal fees and disbursements: your real estate lawyer handles title searches, registration and the closing itself.
- Title insurance: protects against certain title problems and is often arranged by your lawyer.
- Home inspection: strongly recommended before you firm up an offer.
- Mortgage default insurance: usually required if your down payment is below 20%. It is typically added to the mortgage, but provincial sales tax on the premium is paid at closing.
- Adjustments: you may reimburse the seller for property taxes or utilities they have prepaid.
- Moving and setup: movers, utility connections and any immediate repairs.
Plan ahead
Use the land transfer tax calculator and mortgage calculator on this site for an estimate, then confirm the details with your lawyer and lender.
Questions about budgeting for your purchase? Contact Nadeem.
