The down payment gets all the attention. Then closing day arrives with its own bill — and for a lot of buyers, it's the first time they hear about it. Here's what it is, what it costs, and how to budget for it. Toronto edition.
What will your move cost you?
No surprises on closing day — that’s our rule. Put in your numbers and see every dollar you’ll need, including the ones nobody mentions until the lawyer’s statement arrives.
Good to know: We’ve made every effort to keep this accurate, but it’s an illustration — not legal, tax, or mortgage advice. Brackets and rules change, and every deal is different. Land transfer tax, rebate, insurance and commission math use current Ontario, Toronto and CMHC rates; legal, title, inspection and moving figures are typical Toronto ranges. Confirm your numbers with your lender and your lawyer before relying on them — their figures are the final word.
1
Land transfer tax — the double tax.
In Toronto you pay it twice. The province charges land transfer tax, and the City of Toronto charges its own municipal land transfer tax on top — same brackets, stacked. Buy anywhere else in Ontario and you only pay the provincial one.
The tax is marginal, like income tax brackets. Each layer:
On the portion of the price
Rate
First $55,000
0.5%
$55,000 – $250,000
1.0%
$250,000 – $400,000
1.5%
$400,000 – $2,000,000
2.0%
Over $2,000,000
2.5%
Above $3 million, Toronto's municipal tax climbs its own luxury ladder — 4.40% on the $3–4M slice, rising to 8.60% above $20M (in effect since April 2026). The provincial tax stays at 2.5% over $2M.
The $1M example: $275 + $1,950 + $2,250 + $12,000 = $16,475 provincial. Toronto matches it — another $16,475. Total: $32,950, due on closing day, and it can't go into your mortgage.
2
First-time buyers get a rebate. A real one.
Ontario refunds up to $4,000 of the provincial tax. Toronto refunds up to $4,475 of the municipal tax. They stack — an eligible first-time buyer in Toronto gets up to $8,475 back.
But the eligibility bar is strict, and it's the part people get wrong:
Neither you nor your spouse can have ever owned a home — anywhere in the world. A property back home counts. A name once added to someone's title counts.
Canadian citizen or permanent resident, 18 or older, and you move in within 9 months.
If your spouse doesn't qualify, you may still get half. Get this wrong and the rebate gets clawed back. Be honest with your lawyer.
3
Legal fees and title insurance.
In Ontario only a lawyer can transfer ownership and register your mortgage — this isn't optional, and it isn't the place to hunt for the cheapest quote in the city.
Budget $1,000–$2,500 all-in for a standard Toronto closing, disbursements included (title search, registration fees, couriers, the unglamorous stuff). Title insurance runs about $250–$400 — a one-time premium that protects you against title fraud, survey issues, and old liens nobody found.
Your lawyer sends a full statement of adjustments before closing. Read it. That's your final number.
4
Putting less than 20% down?
Then your mortgage needs default insurance (CMHC or similar). The premium itself goes on your mortgage — but Ontario charges 8% sales tax on that premium, and the tax is due in cash on closing day. You can't finance it.
With 10% down on a $1M home, that's $2,232 your lawyer will ask for on top of everything else. The calculator above shows it as its own line — it's the one buyers tell us they'd never heard of until the statement arrived.
5
Adjustments — paying the seller back.
The seller prepaid things that now partly belong to you: property taxes, utilities, condo fees. On closing day you reimburse them for your share. Closing July 1 with the seller's taxes paid through December? You're buying six months of their tax bill.
Condo buyers: the status certificate costs about $250, and your lawyer will want it. It confirms the building's finances, the reserve fund, and whether the seller owes anything.
These are the "surprise" line items for most buyers. They're not surprises if you budget for them.
6
Moving-day money.
Movers. Utility hookups. The lock change. The thing that breaks in week one — there's always a thing. None of this is on the lawyer's statement, and all of it comes out of your pocket.
The calculator above covers the fixed costs — tax, legal, title, inspection. On top of that, leave room for adjustments and the unexpected.
On that $1M Toronto purchase, budget roughly $40,000–$45,000 all-in, land transfer tax included. Not a rounding error. Plan for it before you fall in love with the house, not after.
Buying soon? Talk to us first.
We'll run your real closing numbers before you write an offer — no surprises on closing day.
