Home Buying Costs in Ontario
Beyond the purchase price, there are several costs to budget for when buying a home. Here's a comprehensive breakdown so you're fully prepared.
General Rule of Thumb:
Budget 3-5% of purchase price for closing costs
(On top of your down payment)
Minimum 5%
For homes under $500,000
$25,000 on $500K
5% + 10%
For portion between $500K-$1M
$75,000 on $1M
20% minimum
For homes over $1 million
$250,000 on $1.25M
💡 Less than 20% down requires CMHC insurance (adds to mortgage)
Land Transfer Tax (Ontario)
Graduated rate up to 2.5%
$12,475 on $500K
Toronto LTT
Additional tax if buying in Toronto
$12,475 on $500K
Legal Fees
Lawyer fees and disbursements
$1,500 - $2,500
Title Insurance
Protects against title issues
$300 - $500
💡 First-time buyers may qualify for Land Transfer Tax rebates
Home Inspection
General property condition
$400 - $600
Appraisal
Often covered by lender
$0 - $500
WETT Inspection
If wood-burning appliances
$150 - $300
Septic/Well
For rural properties
$300 - $500 each
💡 Budget $500-$1,500 for inspections depending on property type
Home Insurance
Required before closing
$100 - $200/month
CMHC Insurance
If down payment < 20%
2.8% - 4% of mortgage
Title Insurance
One-time cost at closing
$300 - $500
💡 Shop around for home insurance - rates vary significantly
Moving Costs
Professional movers
$500 - $2,000
Utility Connections
Setup fees for services
$100 - $300
Immediate Repairs
Lock changes, cleaning, etc.
$500 - $2,000
Furnishings
New furniture, appliances
Varies widely
💡 Don't forget these costs when budgeting!
Example: Buying a $800,000 Home
With 20% Down ($160,000)
With 10% Down ($80,000)
*CMHC added to mortgage