Understand home closing costs in Toronto and Ontario for buyers and sellers. Learn about land transfer tax, legal fees, commissions, and hidden costs with expert guidance from Gondia Realty Group.
Buying or selling a home in the Greater Toronto Area is an exciting milestone — but many people underestimate one critical part of the transaction:
Closing costs.
Whether you're purchasing a downtown condo in Toronto, a luxury estate in Oakville, or selling your family home in Mississauga, understanding closing costs in Ontario is essential to avoid surprises and protect your investment.
This comprehensive guide breaks down exactly what buyers and sellers should expect in Toronto and across Ontario.
What Are Closing Costs?
Closing costs are the additional expenses incurred to legally complete a real estate transaction. These costs are paid on or before closing day and are separate from the purchase price.
In Ontario, closing costs typically range:
Buyers: 1.5% – 4% of purchase price
Sellers: 3% – 6% of sale price (primarily agent commissions)
The exact amount depends on property type, location, financing structure, and whether the property is freehold or condominium.
Closing Costs for Buyers in Toronto & Ontario
If you're buying a home in Toronto or anywhere in Ontario, here’s what you should budget for:
1. Land Transfer Tax (The Biggest Cost)
Ontario charges a provincial Land Transfer Tax (LTT).
If you’re buying in the City of Toronto, you pay both:
Ontario Land Transfer Tax
Toronto Municipal Land Transfer Tax
This effectively doubles the tax for Toronto buyers.
Example:
On a $1,000,000 home in Toronto:
Ontario LTT: approx. $16,475
Toronto LTT: approx. $16,475
Total: approx. $32,950
First-time buyers may qualify for rebates.
2. Legal Fees & Disbursements
A real estate lawyer handles:
Title search
Registration
Mortgage documentation
Closing paperwork
Typical cost in Ontario:
$1,500 – $2,500
3. Mortgage-Related Costs
Depending on financing, buyers may pay:
Mortgage insurance (if less than 20% down)
Appraisal fee ($300–$600)
Lender legal/admin fees
Title insurance
4. Home Inspection
While optional, highly recommended.
Typical cost:
$400 – $800
For luxury estates or large properties, inspection costs may be higher.
5. Property Adjustments
Buyers reimburse sellers for prepaid:
Property taxes
Condo maintenance fees
Utilities
These are prorated to the closing date.
6. Moving & Setup Costs
Often overlooked:
Movers
Utility connection fees
Immediate repairs or upgrades
Closing Costs for Sellers in Toronto & Ontario
Sellers typically pay higher closing costs than buyers.
Here’s what to expect:
1. Real Estate Commission
This is usually the largest expense.
In Ontario, commission typically ranges from:
3.5% – 5% of the sale price + HST
This is split between:
Listing brokerage
Buyer’s brokerage
For luxury properties, commission structures may vary.
2. Legal Fees
Seller lawyer costs:
$1,200 – $2,000
Includes:
Mortgage discharge
Document preparation
Title transfer
3. Mortgage Discharge Penalty
If you break your mortgage early, penalties may apply.
These vary depending on:
Fixed vs variable mortgage
Remaining term
Interest rate environment
This can range from a few thousand dollars to significantly more.
4. Staging & Marketing (If Applicable)
For luxury and competitive listings, sellers may invest in:
Professional staging
High-end photography
Cinematic video
Digital marketing campaigns
Strategic marketing often delivers significantly higher sale prices.
Toronto vs Ontario: What’s Different?
The major difference is:
Toronto has a double land transfer tax.
If you’re buying outside Toronto (Mississauga, Oakville, Burlington, Milton, etc.), you only pay the Ontario LTT.
For luxury properties, this difference can equal tens of thousands of dollars.
Hidden Costs Most People Forget
Even experienced buyers and sellers overlook:
Condo status certificate fee ($100–$300)
Bridge financing (if applicable)
Title insurance upgrades
Moving storage
Minor repairs required by agreement
Being prepared prevents last-minute financial stress.
How to Prepare Financially
Smart preparation includes:
✔ Requesting a full closing cost estimate before firming an offer
✔ Consulting your mortgage advisor early
✔ Reviewing mortgage discharge terms
✔ Budgeting conservatively
✔ Working with experienced professionals
In competitive GTA markets, financial clarity is strategic power.
Luxury Real Estate Considerations
High-end properties often involve:
Larger land transfer taxes
Complex financing structures
Extended due diligence
Higher staging investment
For estate homes in Toronto, Oakville, or waterfront communities, professional guidance becomes even more critical.
Final Thoughts: Knowledge Protects Your Investment
Real estate is one of the largest financial decisions you'll ever make.
Understanding closing costs in Toronto and Ontario ensures:
No surprises
Strong negotiation
Clear budgeting
Confident decision-making
Whether you’re purchasing your first condo, upgrading to a luxury estate, downsizing, or selling a long-held family property — clarity on closing costs gives you leverage and peace of mind.
Thinking of Buying or Selling?
If you're planning a move in Toronto, Mississauga, Oakville, Burlington, or anywhere in the Greater Toronto Area, understanding your numbers is the first step.
Professional guidance can help you:
• Estimate exact closing costs
• Structure financing strategically
• Maximize sale proceeds
• Avoid costly mistakes
