Buyer Costs

It is important to be aware of all costs associated with purchasing a home. The down payment (typically 5-25% of the purchase price) is the largest expense. There are, however, others costs to keep in mind. Land transfer taxes (both provincial and municipal), moving costs and legal fees are the basics. We will review what the potential additional expenses may be with you before you buy. Our goal is to educate and prepare our clients so there are no unpleasant surprises.


Mortgage Application

Some lenders will pass on the cost to process your application. These fees vary and some lenders will waive them entirely if you have other accounts with them.

Appraisal Fee (AT INSPECTION)

Although lenders request most appraisals, the borrower pays the appraisal cost. From the appraiser’s perspective, the lender is the client, not you. However, when you order the appraisal yourself the appraiser works for you and you have access to all the information. Appraisal costs vary depending on the appraiser.

Costs are typically $350-500 plus tax.

Property/Building  Inspection  

Many Buyers choose to have a professional home inspector inspect property they want to buy. A report on the current status of the mechanical aspects of a house goes a long way to assist with budgeting for repairs needed immediately and for those in the future. Eg: If the roof is new, money is unlikely to be needed for that maintenance item for 10 – 15 years. Conversely, a 20 year old furnace means a Buyer will be facing a $3500 – $10,000 cost almost immediately.

The cost of the home inspection will vary depending on factors such as age, size and location of the property. Depending on circumstances, you may decide to commission an inspection before submitting your Offer with a view to making an unconditional bid. There will be other times when you may be further ahead making your offer conditional upon such an inspection. We will discuss your options with you and assist in your decision making.

The cost of inspection is usually linked to the square footage of the space being inspected. Expect quotes ranging from $500 – $1,000.  



Connection Charges for Utilities such as Gas, Water and Electricity

Moving Expenses



Deposits most often are approximately 5% of the purchase price. Larger deposits, (think 10%) go a long way in making your offer attractive to the Seller. A higher deposit helps to instill confidence and could be the factor that differentiates one offer from another.

Legal Fees

Legal work includes the land title search, closing costs and in the case of condo purchases, the review of status certificate.

Costs are approximately $1500 plus disbursements and HST.  This number may vary due to any complexities discovered during the title search.

Mortgage broker Commission  (if applicable, usually paid by the lender)

Property Survey

If you are buying a property with a view to rebuilding or adding an addition, a topographical survey of the property will be helpful. Topographical surveys will show any trees that are protected by current legislation. The cost of a new topographical survey for most Toronto lots will fall between $1500 and $2500.

Title Insurance

An alternative to an up to date survey. You can get this from a variety of insurers and the cost is based on a sliding scale depending on purchase price. Costs typically fall in the range of $??? plus tax.  

Legal Disbursements

This involves some of the closing fees that your lawyer will pay on your behalf. This includes things like photocopies, tax certificates, zoning clearances, work orders, couriers, registration of the deed and mortgages, searching executions, mortgage schedules, status certificates.

Costs typically fall in the range of $$600-$800 plus tax.  

Deed and/or Mortgage Registration

Ontario Land Transfer Tax

(Varies depending on purchase price – see our Land Transfer Calculator)

Toronto Land Transfer Tax

(Varies depending on purchase price – see our Land Transfer Calculator)

If you are a first time home buyer you are eligible for rebates for both the Municipal and Provincial Land Transfer Tax

Municipal Land Transfer Tax (MLTT) Maximum $3725
Provincial Land Transfer Tax (PLTT) Maximum $2000



Property Taxes:

If the Seller you are buying from has  paid property taxes  beyond the closing date, your lawyer will reimburse him from the closing funds which becomes an added cost to you.


Applies to new construction (condos and houses). It is owed by the builder and is usually buried in the purchase price you pay. May on occasion apply to renovated houses (subject to the extent of the renovation).

Tarion Warranty Fees

(Warranty on new construction condos and houses only, not resale) – click here to estimate Tarion Fees

Provincial Sales Tax

(Only applicable on chattels purchased from vendor – amount varies)

CMHC Insurance Premium

(Insurance premium charged if you have less then 20% down payment – click here to estimate CMHC insurance)

Mortgage Interest Adjustment and Take Over Fee (if applicable)

Statements of Adjustments

This is calculated by your lawyer. It refers to any fees or utility payments the seller has made that carry forward past the date of closing. If the seller has paid property taxes for the full year, you will be responsible for your portion from the time of closing until the end of the year. Utilities and gas are metered and will be read on closing. The seller is responsible for all costs up to the date of closing.

Mortgage Insurance

Balance on closing

(Need to explain how this is made….)


Ask your lender or mortgage broker in advance to detail everything that will be deducted from your loan on closing. Being prepared for the mortgage lending process means you are not surprised with the total loan amount you will receive from your lender on closing, but also that your closing will be completed in a stress-free manner.


Mortgage payments

Maintenance/Condo Fees

They are non-negotiable. If you wanted to apply to be on the condo board, you could try to find cheaper service providers and influence the overall maintenance fees for the entire building. But the difference would likely be marginal.

Property taxes

In terms of how these are paid, it will depend on your mortgage arrangement. The lender may insist that the taxes are folded into the mortgage to protect themselves in the event of a default. This is because the city has first rights to tax money ahead of the lender in the event of a mortgage default so lenders like to protect themselves where they can. In some co-op buildings, property taxes are included in the maintenance fees i.e. The Avoca Co-op Building at Yonge and St. Clair


Homeowner’s Insurance

Also known as property or home insurance, this helps protect your home from physical threats like fire, water damage, accidents, and loss of property from theft. It’s required when you have a mortgage.

Mortgage Life Insurance

This is a prudent way to protect your family or beneficiaries. Your premium is based on your age and mortgage amount and is added to your mortgage payment.

Disability Insurance

Important to consider if your mortgage payments depend entirely or in part on your income. Disability insurance provides replacement income if an accident or i• llness prevents you from working.

Job Loss Mortgage Insurance

This insurance covers mortgage payments in the event that one involuntarily loses their job.

ONGOING/future costs may include




 Appliances repairs

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