Ask any experienced real estate lawyer and they’ll tell you the same thing: first-time buyers routinely underestimate what it actually costs to close a deal in Toronto. The purchase price is the headline number, but a string of additional costs can add 3–5% to your total outlay.
Ontario Land Transfer Tax
Ontario charges a progressive land transfer tax on all home purchases. On a $900,000 home, you’ll pay approximately $14,475 in provincial LTT. First-time buyers get a rebate of up to $4,000 — but only on the provincial portion.
Toronto Land Transfer Tax
If you’re buying within the City of Toronto, you pay a second, identical land transfer tax. Same rates, same structure, double the cost. On that $900K home: another ~$13,975 in municipal LTT. The first-time buyer rebate here is up to $4,475.
Legal Fees
Expect to pay $1,500–$2,500 for a real estate lawyer to handle the closing, title search, and document registration. This is non-negotiable — you need a lawyer for every real estate transaction in Ontario.
Home Inspection
A licensed home inspector will charge $400–$600 for a standard home inspection. In competitive bidding situations many buyers waive this — a decision that can be very costly if the home has hidden issues.
Title Insurance
A one-time premium of $200–$400 protects you against title fraud, survey errors, and unknown liens. Strongly recommended.
Adjustment Credits
At closing, you’ll typically reimburse the seller for prepaid property taxes, utilities, and condo fees. Budget $500–$3,000 depending on timing.