Closing Costs

When purchasing a property, it’s important to understand that there are closing costs to be incurred.  The main closing costs are legals, land transfer tax, home insurance, and moving costs.

In some provinces a public notary can close a real estate transaction but in Ontario, a lawyer must close a real estate transaction. Your lawyer will diligently work on your behalf to ensure a smooth and timely closing. For more information on exactly what a lawyer does along with a glossary of terms check out the Resources Section of this website.

Legal Fees range in price from $1299 plus HST to $1600 plus HST depending on the lawyer and the complexity of the closing. Most closings are quite straightforward. Legal fees include  disbursements such as photocopies, bank charges, title search costs, title insurance etc. Please note: title insurance on properties over $500k increased by $1 per $1000.00. There is also a fee of $71.30 for each deed or mortgage registered with the city. Remember that you are picking up the keys from your lawyer on the day of closing so be sure he/she is conveniently located.  An additional cost which may or may not be applicable are prepaid utilities adjustments and property tax adjustments For example, if a Seller has paid the property tax up until the end of the year and your home closes on August 1st, it is likely that you will owe the Seller the amount he/she has paid up until the end of the year and from August 1-Dec 31st.

Land Transfer Tax is calculated on a sliding scale based on the purchase price of the property. There is a provincial land transfer tax as well as a municipal land transfer tax for those people buying in the City of Toronto. First Time Buyers are eligible to receive a significant exemption on these taxes based on purchase price. For more info on calculating the Land Transfer Tax for your specific purchase,  please see the Land Transfer Tax Calculator on the home page of this site.

Toronto Luxury Tax was approved by Toronto City Council In September 2023 and commenced on January 1, 2024. To clarify, it is NOT an entirely new tax, however, it will result in a higher Land Transfer Tax for high-value properties ($3 million and higher). For more info on calculating the Land Transfer Tax for your specific purchase,  please see the Land Transfer Tax Calculator on the home page of this site.

Home Insurance Cost must be obtained in order to receive your mortgage funds. Costs vary and are based on the type, age, condition etc of the home.

Moving Costs vary and are calculated on the amount of items (by weight) and/or # of rooms and by travel distance.

We’re here to help you navigate your purchase from start to finish and beyond. We have a team of professionals including lawyers, insurance brokers, movers, accountants and tax planners who are available to assist you. Please reach out so we can introduce you!