Toronto Closing Costs: Your Down Payment Is Only Part of the Bill

October 5, 2026

The short version: On a $600,000 resale home in Toronto, land transfer taxes total $16,950 before first-time-buyer rebates, or $8,475 if you qualify for both full refunds. Legal fees, adjustments, moving costs and a repair buffer come on top of that. Figures checked October 2026.

You've saved the down payment. You've looked at the monthly mortgage payment. You've probably already decided where the sofa goes.

Then somebody mentions closing costs. Toronto would like a word.

If you're buying your first home this fall, work out the cash you need to complete the purchase before you settle on your maximum offer. The down payment is only part of that number.

Toronto has two land transfer taxes

For a purchase inside the City of Toronto, the municipal land transfer tax sits on top of Ontario's provincial land transfer tax. Both use graduated rates. This Toronto calculation should not be applied to every address in the GTA.

Let's use a hypothetical $600,000 resale home. Before any first-time-buyer refunds, the calculation is:

Tax	Amount
Ontario land transfer tax	$8,475
Toronto land transfer tax	$8,475
Combined land transfer taxes	$16,950

$16,950

Land transfer taxes before rebates

$8,475

Still payable with both full rebates

That is separate from your down payment. And we haven't reached the lawyer's bill yet.

First time does not automatically mean tax free

Eligible first-time buyers can receive up to $4,000 back from Ontario and up to $4,475 from Toronto.

Assuming you qualify for both full amounts and they are applied at registration, our example becomes:

$16,950 - $4,000 - $4,475 = $8,475 in land transfer taxes still payable.

The rebates help. They do not erase the entire bill at this purchase price.

Check eligibility before counting the money

"It's my first purchase in Toronto" is not the same as meeting the first-time-buyer rules. Previous ownership elsewhere in the world, including an inherited interest in a home, can matter. A spouse's ownership history and buying with someone who has owned before can also affect eligibility or the refund amount.

Ask your real estate lawyer to check your actual circumstances, including the occupancy and citizenship or permanent-residency requirements. Confirm whether the refunds will be applied at closing or claimed afterwards. Your cash plan needs to reflect the timing, too.

The other costs that need a line in your budget

Ask for an estimate that covers legal fees and disbursements, registration, title insurance and closing adjustments. For example, you may need to reimburse the seller for property taxes they have prepaid. The exact amounts depend on the property and transaction.

If your mortgage requires mortgage default insurance, ask your lender about the sales tax on that premium. In Ontario, that tax cannot be added to the mortgage, even when the premium itself is financed. It is another cash item to account for.

Then keep moving costs and an emergency repair buffer on your own worksheet. They are not all legal closing charges, but they still come out of your bank account.

For a house, that buffer deserves particular attention. Read my basement questions to ask before buying while you're looking at the property, not after a wet cardboard box makes the point for you.

Before you make an offer

Send your lawyer the property address and proposed purchase price and ask:

What are the provincial and municipal land transfer taxes for this purchase?
Which refunds do I qualify for, and when will they reduce the cash I need?
What legal costs, disbursements and adjustments should I allow for?

Ask your lender separately about insurance-related cash charges and any lender fees. Put those estimates beside your down payment, moving budget and reserve. Then look at what would actually be left after closing.

A smaller down payment is not automatically the right answer, either. Changing it can change your financing costs and approval. Run the revised numbers with your lender before reallocating the money.

The question I would start with

"Can I make the monthly payment?" matters. So does "Can I complete the purchase and still have money left for real life?"

Before you fall in love with a place, get the full cash picture. The sofa can wait.

Let's work out your number

Buying this fall? Before you set your max budget, let's work out your real cash-to-close number together. Contact me.

Figures checked October 2026. The $600,000 example is illustrative and assumes eligibility for both full refunds. Have your lawyer and lender confirm the amounts and rules for your purchase.