First-time buyers budget for the down payment and the purchase price — and then closing day arrives with a bill they didn't see coming. Closing costs add 1.5%–4% to your purchase price, and in some Ontario cities, more. Knowing them in advance is the difference between a smooth close and a scramble.
Land transfer tax
This is the biggest closing cost, and in Toronto, you pay it twice — once to the province and once to the city. On a $700,000 home, provincial land transfer tax alone can exceed $9,000, and Toronto's municipal tax roughly matches it. First-time buyers get rebates that can offset much of this, but only if they claim them. Don't leave money on the table.
Legal fees and disbursements
Your lawyer handles the title transfer, registration, and the closing itself. Legal fees typically run $1,000–$2,000 including disbursements — title search, registration fees, courier costs, and adjustments. It's a fixed, predictable cost, but one buyers consistently forget to budget.
Title insurance and adjustments
Title insurance (often $200–$500) protects against title defects and is required by most lenders. Then there are adjustments — property taxes, utilities, or prepaid condo fees that the seller has already covered, reimbursed at closing. These can add or subtract a few hundred dollars.
Budget the full picture
A safe rule of thumb: set aside 1.5%–4% of your purchase price for closing costs, on top of your down payment — and more in Toronto or Vancouver. We give every buyer a written closing-cost estimate tailored to their purchase and their city, so the only thing that surprises you on closing day is the keys in your hand.
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