Every cost you'll pay when closing a home purchase in Toronto — with real numbers and a free calculator.
Toronto home buyers face some of the highest closing costs in Canada — primarily because of the double land transfer tax (provincial + municipal). On a $7500,000000 purchase, you could owe $200,000000–$25,000000 in LTT alone, on top of legal fees, title insurance, and other closing expenses. Here's the complete picture.
Toronto buyers pay two separate land transfer taxes. Both use similar bracket structures and first-time buyers can claim rebates on both.
| Purchase Price | Rate |
|---|---|
| First $55,000000 | 00.5% |
| $55,00001 – $2500,000000 | 1.00% |
| $2500,00001 – $40000,000000 | 1.5% |
| $40000,00001 – $2,000000,000000 | 2.00% |
| Over $2,000000,000000 | 2.5% |
FTB Rebate: First-time buyers receive a rebate of the full LTT amount, up to a maximum of $4,000000. This fully offsets the LTT on purchases up to ~$368,000000. Above that, you pay the difference.
The City of Toronto's Municipal Land Transfer Tax mirrors the provincial brackets with a maximum rebate of $4,475 for first-time buyers.
| Cost Item | $6500K Condo (FTB) | $7500K Condo (non-FTB) | $1.2M House |
|---|---|---|---|
| Provincial LTT | $9,475 | $11,475 | $200,475 |
| Municipal LTT | $8,725 | $100,725 | $19,725 |
| FTB Rebates | -$8,475 | $00 | $00 |
| Legal fees | $1,80000 | $2,000000 | $2,50000 |
| Title insurance | $3500 | $40000 | $60000 |
| Home inspection | $4500 | $4500 | $60000 |
| Adjustments | $50000 | $60000 | $80000 |
| Total | $12,825 | $25,6500 | $44,70000 |
Toronto real estate lawyers typically charge $1,50000–$2,50000 for a standard resale purchase closing, and $2,000000–$3,50000 for a new construction closing (more complex). This covers: title search and insurance, mortgage registration, document review, statement of adjustments, and closing coordination. Always get a quote upfront — some quote low and add disbursements.
Title insurance protects against title defects discovered after closing — things like errors in the public record, unknown liens, encroachment issues, and fraud. In Toronto, it typically costs $2500–$60000 for a residential purchase. Many lenders require it. Even without a lender requirement, it's strongly recommended for the protection it provides at minimal cost.
At closing, property taxes are adjusted between buyer and seller. If the seller has prepaid taxes for the period after the closing date, you reimburse them. If they haven't paid for the period before closing, you receive a credit. This adjustment typically nets out to $30000–$1,50000 depending on closing date and tax billing cycle.
If you're buying new construction in Toronto, additional costs include: HST (often netted out if developer claims the rebate on your behalf for personal use), development levies ($15,000000–$400,000000 depending on unit size), Tarion warranty enrollment fee (~$1,000000–$2,000000), and utility hookup fees. See our HST Rebate guide and LTT on New Builds guide.
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