💰 Additional Costs to Consider When Buying a Home or Condo in Toronto

While the purchase price is the most visible cost when buying a property in Toronto, it’s important to budget for several additional expenses that come with homeownership. Below is a breakdown of common fees and costs to keep in mind:

🔐 Deposit

• A deposit is required within 24 hours of offer acceptance.

• Amount varies but is usually 5% of the purchase price.

• Shows good faith and secures your interest in the property.

🏠 Appraisal Fee

• Required by lenders to confirm the property's market value.

• Cost: $300 – $500 for a typical residential appraisal.

• Appraisers are often assigned by the lender’s approved list.

🔎 Home Inspection Fee

• Recommended, especially for first-time buyers.

• Helps identify potential issues before finalizing the purchase.

• Cost: $400 – $600 depending on the property size and complexity.

🔐 Home Insurance

• Required if you’re placing a mortgage on the property.

• For condos, building insurance is usually included in the maintenance fees, but content or liability coverage may still be necessary.

• Rates vary based on property value, location, and personal insurance history.

🧾 Mortgage Loan Insurance

• Mandatory if your down payment is less than 20%.

• Provided by CMHC or Genworth.

• Premium is often added to your monthly mortgage payments.

🧾 Status Certificate Fee (For Condos)

• Provides important financial and legal details about the condo corporation.

• Recommended to be reviewed by your lawyer.

• Cost: $100 + HST in Ontario.

📄 Title Insurance

• Protects against potential issues with the property title.

• Covers you throughout your ownership.

• Cost: $300 – $500 (one-time fee).

⚖️ Legal Fees

• Lawyers handle the closing process, title searches, and mortgage registration.

• Includes disbursements (costs paid on your behalf).

• Average Cost: $900 – $1,300 for a standard residential transaction.

🏡 Land Transfer Tax

• Ontario Land Transfer Tax applies to all home purchases in Ontario.

• Toronto Land Transfer Tax applies in addition if the property is within Toronto city limits.

• First-time home buyers may be eligible for a rebate (up to $4,000 in Ontario).

• Online calculators can help determine the exact amount.

🏗️ Harmonized Sales Tax (HST)

• Resale homes are HST-exempt.

• New homes are subject to HST but may qualify for a rebate if they are under $450,000 and used as a primary residence.

  • Homes ≤ $350,000: Rebate of 36% of the HST paid (up to $8,750).

  • Homes $350,000–$450,000: Rebate decreases gradually.

• HST also applies to most services involved in the transaction (e.g., legal fees, home inspection, movers).

📦 Other Costs

• Moving expenses.

• Utility hookups (new accounts or transfers).

• Property tax adjustments (reimbursement to the seller for prepaid taxes).

• Ongoing costs such as:

  • Property taxes

  • Condo maintenance fees

  • Utility bills

  • General maintenance and repairs

📝 Tip:

Speak with your real estate agent, mortgage broker, or lawyer to get an estimate of your total closing costs and ongoing expenses. Being prepared financially helps ensure a smooth and stress-free home buying experience.