All Buying Tips
Buying Tips
Buying Closing Costs
Closing costs are the expenses you pay when you purchase a home, in addition to your down payment. Here's what to budget for in Ontario.
What are buying closing costs?
Closing costs are the expenses you pay when you purchase a home in addition to your down payment.
Typical Ontario home-buying closing costs
| Cost | Typical amount / notes |
|---|---|
| Land Transfer Tax | Depends on purchase price. First-time buyers may qualify for up to $4,000 Ontario rebate. |
| Legal fees & disbursements | Often approximately $1,500–$3,000+, depending on the transaction. |
| Title insurance | Often varies depending on property value and policy. Check with lawyer. |
| Home inspection | Commonly around $400–$700+. |
| Appraisal | Often $300–$600, although the lender may pay for it. |
| Property tax adjustment | You may have to reimburse the seller for property taxes they've prepaid beyond the closing date. |
| Condo/Status Certificate | Relevant to condos; the certificate itself typically costs around $100, plus any rush fee. Sellers usually pay but it's negotiable. |
| Home insurance | Usually required before closing, with the first payment/premium depending on the policy. |
| Mortgage default insurance | If putting less than 20% down, the premium is generally added to the mortgage rather than paid separately at closing. |
| Moving / utility setup | Variable and not technically a closing cost, but worth budgeting for. |
How much should a buyer budget?
For a typical Ontario purchase, I'd use approximately 1.5%–3% of the purchase price as a general planning range before considering the down payment, but it can be higher or lower depending heavily on Land Transfer Tax, whether the buyer is a first-time buyer, and whether the property is new or resale.
Questions about buying in Lagoon City?
Joselle is happy to walk you through any of this, no obligation.