Buying a Home in Toronto? Here's What It Really Costs!

1. Land Transfer Tax – One of the Biggest Expenses

When purchasing a property in Toronto, buyers generally pay two separate land transfer taxes:

• Ontario Land Transfer Tax
• Toronto Municipal Land Transfer Tax

Combined, these taxes typically represent approximately 2.5% to 3.5% of the purchase price for many Toronto properties, depending on the property's value. You can calculate your exact provincial and municipal breakdown using our free Toronto Land Transfer Tax Calculator.

Eligible first-time homebuyers may qualify for provincial and municipal land transfer tax rebates, significantly reducing their closing costs.

2. Legal Fees, Title Search, and Closing Costs

Hiring a real estate lawyer is an essential part of purchasing a property. Your lawyer will review the legal documents, conduct a title search, register the property, and ensure the transaction closes properly.

Typical expenses in Toronto include:

• Real Estate Lawyer Fees: Approximately $1,000–$2,000, plus HST.
• Title Search and Related Disbursements: Approximately $200–$400, depending on the property and the searches required.
• Title Insurance: Approximately $250–$500, depending on the property's value and coverage.

Overall, buyers should generally budget approximately $2,000–$3,000 or more for legal fees and related closing expenses. These are approximate costs, and some lawyers include title searches and other disbursements in their quoted packages.

3. Home Inspection – Protect Your Investment

Before purchasing a house, it's wise to consider a professional home inspection. A qualified inspector can identify potential issues with the roof, foundation, electrical systems, plumbing, heating, and other important components.

Typical Home Inspection Cost in Toronto: $500–$800, depending on the property's size, age, and condition.

A home inspection is a relatively small expense that can help you avoid costly surprises after purchasing your property.

4. Mortgage and Financing Expenses

If you're financing your purchase with a mortgage, there may be additional costs, including property appraisal fees, mortgage default insurance, and certain lender fees.

Your mortgage professional can help you understand these expenses and determine the financing options that best suit your needs.

5. Condo-Specific Expenses

When purchasing a condominium in Toronto, buyers should carefully review the building's status certificate.

Status Certificate Cost: $100, the standard fee for a regular status certificate request in Ontario.

This document provides important information about the condominium corporation's finances, reserve fund, rules, and potential legal issues. Buyers should also consider monthly maintenance fees, property taxes, utilities, and possible special assessments.

6. Moving and Other Expenses

Beyond closing costs, buyers should prepare for moving expenses, furniture, appliances, utility connections, and any necessary repairs or improvements. Planning ahead will help make the transition into your new home easier and less stressful.

7. How Much Should You Budget for Closing Costs?

As a general guideline, Toronto homebuyers should consider budgeting approximately 3% to 5% of the purchase price for closing costs, in addition to their down payment. If you currently own property and are planning a simultaneous move, see our guide on selling your home before buying another one.

Actual expenses will depend on the property's value, financing arrangements, and eligibility for available tax rebates.