10/22/2026
🏡💰 Buying a home? Don't forget about closing costs!
A lot of first-time buyers focus on saving for their down payment, but forget about the additional expenses that come with purchasing a property!
Here are some important costs to budget for:
⚖️ 1. Legal Fees & Disbursements: Your real estate lawyer handles the legal paperwork, title searches, registration, and closing process.
🏛️ 2. Land Transfer Tax: Ontario charges land transfer tax when purchasing property. If you're buying in Toronto, there's an additional municipal land transfer tax!
🏠 3. Home Inspection: An inspection can help identify potential issues with the property before you commit, depending on the terms of your offer.
📋 4. Title Insurance: Often arranged through your lawyer to protect against certain title-related risks.
💰 5. Property Tax & Utility Adjustments: You may need to reimburse the seller for certain prepaid expenses.
📦 6. Moving & Setup Costs: Don't forget movers, utility connections, and other expenses associated with settling into your new home!
💡 PRO TIP: A common budgeting guideline is to set aside approximately 1.5%–4% of the purchase price for closing costs, although your actual expenses may differ significantly depending on the property, location, and applicable rebates.
For example, on an $800,000 home, that guideline represents approximately $12,000–$32,000 in potential closing expenses.
Some eligible first-time buyers may qualify for Ontario and Toronto land transfer tax rebates, which can reduce their costs.
Don't let unexpected expenses catch you off guard!
Thinking about buying in the GTA? Reach out and we'll help you understand what to budget for. 📲
Rajan Sethi, Broker | 416 835 7960
Sparsh Sethi, Realtor® | 647 531 7007
RE/MAX Real Estate Centre Inc., Brokerage
