Closing Costs Toronto: What Home Buyers Need to Budget For in 2025

Introduction

Buying a home in Toronto involves more than just agreeing on a purchase price. One of the most common surprises for buyers is the total amount of closing costs Toronto home buyers must pay before receiving the keys. These costs are due on closing day and can add up quickly if they are not planned for in advance.

In Toronto and across Ontario, closing costs typically range from 1.5% to 4% of the purchase price, depending on the property type, location, and financing structure. With Toronto home prices remaining high and market conditions evolving into 2025, understanding these costs is essential for accurate budgeting and confident decision-making.

This guide explains Toronto closing costs in detail, including land transfer taxes, legal fees, title insurance, inspections, mortgage-related expenses, and adjustments. We also compare costs in Toronto versus Oakville and the Greater Toronto Area to help buyers plan more effectively.

Understanding Toronto Closing Costs for Home Buyers

Closing costs are the final expenses paid when a real estate transaction is completed. These costs ensure the legal transfer of ownership, mortgage registration, and financial adjustments between buyer and seller.

For example, on a $700,000 Toronto property, total closing costs can range from $14,000 to $16,000 or more, excluding mortgage insurance. These costs increase with property value and are generally higher in Toronto compared to other Ontario markets due to municipal land transfer taxes.

Planning ahead for these expenses allows buyers to avoid last-minute financial stress and ensures a smoother closing process.

Breakdown of Toronto Real Estate Closing Costs

Closing costs in Toronto typically include:

• Land transfer taxes

• Legal and professional fees

• Title insurance

• Home inspections and appraisals

• Mortgage insurance (if applicable)

• Closing day adjustments

While these costs exist throughout Ontario, Toronto buyers face additional municipal charges that make accurate planning especially important.

Key Components of Closing Costs in Toronto and Ontario

Land Transfer Taxes

Land transfer tax (LTT) is the largest closing cost for Toronto buyers. Ontario applies a provincial land transfer tax, and Toronto adds an additional municipal land transfer tax, effectively doubling the cost.

Ontario Land Transfer Tax Rates:

• 0.5% on the first $55,000

• 1% on $55,000 to $250,000

• 1.5% on $250,000 to $400,000

• 2% on $400,000 to $2 million

• 2.5% on amounts over $2 million

Toronto applies the same structure municipally. On a $700,000 home, total land transfer tax can exceed $11,475.

For a full breakdown, see our guide on
👉 Ontario Land Transfer Tax

First-time buyers may qualify for rebates of up to $4,000 provincially and $4,475 municipally, significantly reducing this cost.

Legal and Professional Fees

A real estate lawyer is required to complete the transaction. In Toronto, legal fees typically range from $1,200 to $1,500, depending on complexity and whether the property is a condominium.

Legal services include:

• Reviewing the Agreement of Purchase and Sale

• Conducting a title search

• Registering ownership

• Managing the transfer of funds

These fees are consistent across Ontario, with minor variations by region.

Property and Title-Related Costs

Title insurance, usually costing around $400, protects buyers against title defects, fraud, and documentation errors.

Closing adjustments reimburse the seller for prepaid expenses such as property taxes, utilities, or condominium fees. These adjustments are commonly around $300, but vary based on the closing date and property type.

Mortgage and Inspection Fees

If your down payment is below 20%, CMHC mortgage insurance is mandatory and can add $20,000 to $30,000 or more to your loan amount.

Other common costs include:

• Appraisal fees: approximately $600

• Home inspections: $400 to $700, strongly recommended

For a full overview of inspections and financing, see our
👉 Complete Ontario Home Buying Guide

Calculating Closing Costs: Tools and Tips

Online tools such as WOWA.ca closing cost calculators can provide useful estimates. Toronto buyers should budget 3% to 5% of the purchase price to cover closing costs safely.

Costs can vary within the GTA. Central Toronto typically has higher closing costs, while areas like Oakville may have slightly lower municipal taxes and insurance fees.

Unique Considerations for Buying in Toronto vs Oakville

Toronto detached homes usually incur higher closing costs than condominiums due to higher purchase prices and additional inspections.

Oakville buyers may benefit from lower municipal taxes, but factors such as flood zones, older infrastructure, or condo status certificates can still affect final costs.

Understanding these local differences helps buyers plan accurately and avoid surprises.

Final Checklist for Managing Closing Costs on a Toronto Home Purchase

Additional costs to plan for include moving expenses ($500–$2,000) and utility setup fees.

Frequently Asked Questions About Closing Costs Toronto

How much are closing costs in Toronto?

Closing costs in Toronto typically range from 1.5% to 4% of the purchase price, depending on property value and financing.

What is the biggest closing cost in Toronto?

The largest cost is usually land transfer tax, especially due to Toronto’s municipal land transfer tax.

Do first-time buyers get rebates in Toronto?

Yes. First-time buyers may receive up to $4,000 provincially and $4,475 municipally in land transfer tax rebates.

Are closing costs higher in Toronto than Ontario?

Yes. Toronto buyers pay both provincial and municipal land transfer taxes, making closing costs higher than most Ontario cities.

When are closing costs paid?

Closing costs are paid on closing day, before legal ownership is transferred.

Conclusion

Understanding closing costs Toronto home buyers face is a critical step in preparing for homeownership. These expenses can significantly impact your total budget, especially in high-value markets like Toronto.

By planning ahead, budgeting 3% to 5% of the purchase price, and understanding how taxes, legal fees, and mortgage requirements apply, buyers can approach closing day with confidence. Whether you are purchasing in Toronto or considering nearby areas like Oakville, knowing your numbers puts you in a stronger negotiating position and reduces unnecessary stress.

Careful preparation transforms closing day from a financial hurdle into a milestone on the path to owning your next home.

Sources

• Government of Ontario – Land Transfer Tax
  https://www.ontario.ca/page/land-transfer-tax

• Canada Mortgage and Housing Corporation (CMHC)
  https://www.cmhc-schl.gc.ca/en/buying/mortgage-loan-insurance

• Financial Consumer Agency of Canada – Closing Costs
  https://www.canada.ca/en/financial-consumer-agency/services/buying-home/closing-costs.html