Beyond the Down Payment
Everyone knows you need a down payment. But many first-time buyers are shocked by the additional costs that come with buying a home. Here's what to budget for.
1. Land Transfer Tax ($8,000 - $40,000+)
This provincial tax is based on your home's purchase price. In Ontario, it ranges from 0.5% to 2.5% on a sliding scale. Toronto buyers pay an additional municipal tax.
First-time buyer rebate: Ontario offers up to $4,000 back for first-time buyers.
2. Legal Fees ($1,500 - $2,500)
You'll need a real estate lawyer to:
- Review your purchase agreement
- Conduct a title search
- Register the mortgage
- Handle the closing
Don't skip this—it protects your biggest investment.
3. Home Inspection ($400 - $600)
A professional inspection can reveal:
- Foundation issues
- Roof problems
- Electrical/plumbing concerns
- Mold or water damage
This $500 could save you $50,000 in surprise repairs.
4. Title Insurance ($300 - $500)
Protects you against:
- Title fraud
- Survey errors
- Unknown liens on the property
Most lenders require this, and it's a one-time fee.
5. Moving & Setup Costs ($2,000 - $5,000+)
Often forgotten until the last minute:
- Moving company or truck rental
- Utility connections
- New locks and security
- Immediate repairs or cleaning
- Basic furniture and appliances
The Total Picture
For a $500,000 home in Ontario, expect $15,000 - $25,000 in closing costs on top of your down payment. That's 3-5% of the purchase price.
How to Prepare
1. Start saving early - Add closing costs to your down payment goal 2. Get quotes - Shop around for lawyers and inspectors 3. Use our calculator - Get an accurate estimate for your situation