Closing Costs

What you can expect in terms of closing costs.

Closing Costs

Making a purchase or sale of real estate is a complex endeavour with many details and tasks to remember. Having a firm idea of what the costs associated with your purchase or sale will be is essential to planning your move. We have broken down some of those costs for your information. It should be mentioned that these are guidelines and estimation tools, your specific situation needs to be attended to by the appropriate professionals for actual amounts.

When making a purchase, in addition to having your down payment, you will need to have additional funds on hand for closing. Some of those items are the Ontario and Toronto land transfer taxes, legal fees and disbursements, title insurance and moving costs. We expand on these and provide calculators below.

Land Transfer Tax

Toronto has an additional municipal land transfer tax that is levied on top of the provincial land transfer tax which we break down below. We have provided a Land Transfer Tax Calculator here:


0.5% of the amount of the purchase price up to and including $55,000, plus
1% of the amount of the purchase price between $55,000 and $400,000, plus
2% of the amount of the purchase price above $400,000

Commercial / Industrial / Etc.:

0.5% of the amount of the purchase price up to and including $55,000, plus
1% of the amount of the purchase price between $55,000 and $400,000, plus
1.5% of the amount between $400,000 and $40 million, plus
1% of the amount above $40 million

Where Does This Apply?

The Toronto land transfer tax only applies to transactions within the City of Toronto. This does NOT apply to property transactions outside of the City of Toronto.

LTT First Time Buyer Rebate

First time home buyers of new AND resale homes will receive a rebate of the Toronto land transfer tax of up to $3,725 (this equals a 100% rebate on homes purchased for up to $400,000). Teranet will be collecting the Toronto land transfer tax for the City of Toronto. First-time buyer transactions will be exempt from the Toronto land transfer tax at the time of registration. If you have concerns, you should check with your lawyer.

Foreign Buyer Tax

Ontario has recently introduced a 15 per cent non-resident speculation tax applied to all non-residents or citizens. There are exemptions for skilled workers in provincial programs and refugees. Those receiving permanent residency or Canadian citizenship within four years of purchasing their home will receive a full rebate of the NRST. International students enrolled full-time for a minimum of two years can receive a full rebate.


CMHC mortgage insurance applies to properties up to $1,000,000 with down payments of less than 20%. Properties purchased for over $1,000,000 require 20% down as a minimum and are exempt from the CMHC insurance premium.

Legal Fees

Depending on the complexity of the transaction and the legal firm you retain, fees can range between $2000.00 and higher for legal fees and disbursements. This is typically a flat fee and should not be influenced by price point but may be influenced by complexities such as use of family trusts or incorporated entities.

Title Insurance

Title Insurance protects a property buyer or owner from any possible errors regarding title such as survey errors, encroachment issues, existing undisclosed liens, and fraud. Some policies also cover things like a property that was renovated without proper permits. Title Insurance is often required by mortgage lenders and can start around $700-900 for a million dollars and increases by $0.90-$1 per thousand.

Moving Costs

Moving costs can range dramatically depending on the size of the property, the volume of the contents and the amount of work you prefer and are able to put into packing up front.

James Strathy Warren
416.925.9191 – Office
416.323.5276 – Direct
416.520.5704 – Mobile

Alexander Obradovich
416.925.9191 – Office
416.803.4140 – Mobile