If you're thinking about buying a home or condo in Toronto, you’re probably focused on the down payment and mortgage—but the true cost of buying a home goes beyond the purchase price.
Closing costs are a crucial part of your budget, and being prepared for them helps you avoid surprises and make confident decisions.
Whether you’re a first-time buyer, newcomer, or move-up buyer, here’s a clear and comprehensive guide to the most common closing costs in Ontario—plus an example for a $515,000 condo in Liberty Village.
These numbers can vary depending on your lender, property type, and down payment amount—but this gives you a realistic starting point.
1. Land Transfer Tax (LTT) — Provincial + Toronto Municipal Tax
In Ontario, all buyers pay the Provincial Land Transfer Tax. However, if you’re buying a home in the City of Toronto, you also pay a second tax called the Toronto Municipal Land Transfer Tax.That means Toronto buyers pay two land transfer taxes. Buyers in Mississauga, Brampton, Pickering, Ajax, Whitby, Markham, Vaughan, and the rest of the GTA pay only the provincial portion, making their closing costs significantly lower.
Estimated Cost on a $515,000 Condo (Toronto):
~$12,000–$13,000 combined LTT (first-time buyer rebates may reduce this amount)
Estimated Cost on a $515,000 Home (Outside Toronto):
~$6,000 provincial LTT only (first-time buyer rebate may reduce this as well)
This difference is one of the biggest cost variations between buying in Toronto vs. other GTA communities, and it’s important for budget planning.
2. PST on Mortgage Insurance (CMHC or Sagen)
If you put less than 20% down, you’ll have mortgage default insurance. While the premium itself is added to your mortgage, Ontario charges 8% PST on the premium, and this must be paid upfront on closing.
Example for $515,000 with 5% down:
• Insurance premium: approx. $19,000
• PST (8%): approx. $1,520
• Insurance premium: approx. $19,000
• PST (8%): approx. $1,520
3. Title Insurance
Lenders require title insurance to protect against issues such as title defects, fraud, and survey errors. Buyers can also purchase their own policy for added protection.Typical cost: $300–$500 depending on property price.
4. Legal Fees + Disbursements
Your real estate lawyer handles the closing process, title search, mortgage registration, and document preparation.Typical range:
• Legal Fees: $1,200–$1,800
• Disbursements: $300–$700 (This includes courier fees, title searches, and other administrative costs.)
• Legal Fees: $1,200–$1,800
• Disbursements: $300–$700 (This includes courier fees, title searches, and other administrative costs.)
Total estimate: $1,500–$2,500
5. Home Inspection (Optional for Condos, Essential for Houses)
Even in condos, buyers sometimes request inspections for peace of mind. We highly recommend getting an inspection anytime you purchase any type of property.Estimated cost:
• Condo: $300–$450
• House: $450–$650+
• Condo: $300–$450
• House: $450–$650+
6. Status Certificate (For Condos)
This document outlines the financial and legal health of the condo corporation.Cost: $100–$150
Total Estimated Closing Costs for a $515,000 Liberty Village Condo
Here’s a rough summary for a typical first-time buyer:- Provincial + Municipal LTT ~$12,000–$13,000
- PST on Mortgage Insurance ~$1,520
- Legal + Disbursements ~$1,500–$2,500
- Title Insurance ~$300–$500
- Status Certificate ~$125
- Inspection (optional) ~$350
Estimated Total~$15,800–$17,500
These numbers can vary depending on your lender, property type, and down payment amount—but this gives you a realistic starting point.
Want These Numbers Calculated for You? We’ve Got You.
When you browse listings on our website, you’ll find a Mortgage Calculator that automatically estimates some of these closing costs for you—making it easier to understand your true budget.👉 Browse homes here
If you want a detailed closing-cost spreadsheet where you can plug in your purchase price, down payment, and mortgage details and get an exact breakdown:
👉 Fill out this form and mention “closing cost spreadsheet.” We’ll send it right to your inbox.
👉 Fill out this form and mention “closing cost spreadsheet.” We’ll send it right to your inbox.
Buying a home is a big financial step—but with the right information and guidance, it becomes a smooth and empowering process. Our team is here to walk you through every detail.