Most first-time buyers underestimate closing costs by a factor of 2 or 3. Here's the realistic number, with line items.
Budget 3-4% of the purchase price
For a $750,000 home in the GTA, plan on roughly $25,000-$30,000 in closing costs. Here's how it breaks down:
| Item | Typical cost | |---|---| | Ontario Land Transfer Tax (with FTB rebate) | $7,475 | | Toronto Municipal LTT (if applicable) | $7,950 | | Lawyer fees + disbursements | $1,800-$2,500 | | Title insurance | $400 | | Home inspection | $500-$700 | | Status certificate (condos) | $100 | | Property tax adjustment | varies | | HST on CMHC insurance | varies | | Moving + utilities setup | $1,000+ |
The biggest line item is land transfer tax
If you're a first-time buyer, you can claw back up to $4,000 from the Ontario LTT (and another $4,475 if you're buying in Toronto). Use my calculator to see your specific number.
The cheapest closing in the GTA
Buying in Mississauga, Brampton, Oakville, Burlington, or Hamilton instead of Toronto saves you about $4K+ instantly because there's no municipal LTT. That's a real, no-strings-attached discount.
Plan for it early
Your mortgage covers the home. You pay closing costs out of pocket on closing day. Don't deplete your down payment to make a stretch offer - keep that 3-4% reserve.