Buyers - Closing Costs

Besides the basic legal fees when buying a home, lawyers will charge for disbursements (out of pocket expenses like couriers, travel time, postage), plus HST.

The adjustments include things like property and school taxes, condominium fees, utilities and rental income. You may also have charges for arranging a new mortgage and appraisal fees.

Land transfer tax will also be charged and is based on the sale price of your home. For example, the Ontario  land transfer tax for a $200,000 home would be an extra $1,725. On October 23, 2007, the City of Toronto (416 telephone area code being bounded by Steeles on the North, Western boundary of Etobicoke, Eastern boundary of Scarborough and Lake Ontario’s shoreline on the South) approved a municipal Land Transfer Tax that will be levied in addition to the current Ontario provincial Land Transfer Tax.
Try our convenient land transfer tax calculator.

For a resale home, set aside an extra 1 ½ % to 2% of the purchase price to cover these additional costs. For a new home, the costs will be slightly more, closer to 2 ½ % to 3 % of the purchase price.