Buyer Tools

The real cost of closing day.

Your down payment is only part of the cheque. Land transfer tax, lawyer fees, inspections, and a few costs nobody warns you about. See the full number before you offer.

Typical range $1,500 to $2,500

Typical range $400 to $600

One-time, usually arranged by your lawyer

Sometimes covered by your lender

Prepaid property taxes and utilities

Land transfer tax$14,475
PST on mortgage insurance$2,672
Lawyer fees & disbursements$1,800
Home inspection$500
Title insurance$400
Appraisal$350
Adjustments to seller$800
Total closing costs$20,997
Down payment (7.2%)$65,000
Estimated cash needed to close
$85,997

With less than 20% down, the mortgage insurance premium itself is added to your mortgage, but the PST on it is due in cash on closing. Most buyers do not see this one coming.

Estimates for planning purposes only. Fees vary by lawyer, lender, and property. Your lawyer confirms exact figures before closing.

Common questions

How much are closing costs in Ontario?

Plan for roughly 1.5% to 4% of the purchase price on top of your down payment. The single biggest piece is usually land transfer tax, followed by legal fees, title insurance, and inspection costs. On a $900,000 home, closing costs commonly land in the $17,000 to $21,000 range.

Can closing costs be added to my mortgage?

Generally no. Land transfer tax, legal fees, and adjustments are due in cash on closing day. One notable trap: if you put less than 20% down, the mortgage insurance premium is added to your mortgage, but the Ontario PST on that premium must be paid in cash at closing.

Do buyers pay their real estate agent's commission?

In many transactions the buyer's agent is paid through the commission the seller offers when listing the home, so it is often not a direct closing cost for the buyer. How it works in your specific deal is spelled out in your buyer representation agreement before you start shopping.

Is title insurance required when buying a home?

Most lenders require a lender's title insurance policy, and an owner's policy is strongly recommended at the same time. It is a one-time premium, typically a few hundred dollars, usually arranged by your lawyer as part of closing.

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