What are the real closing costs when buying a Toronto condo?

Closing costs on a Toronto condo purchase run between 2.5% and 4% of the purchase price, on top of the down payment. That's $18,750 to $30,000 on a $750,000 unit. The four main buckets are land transfer taxes (provincial and Toronto municipal), legal fees, title insurance, and closing adjustments. Every one of these is predictable. None of them should surprise you at the wire.

The double land transfer tax: the number that shocks buyers most

Toronto condo buyers pay land transfer tax twice: once to the province of Ontario and once to the City of Toronto. No other Ontario city levies a municipal land transfer tax. Toronto does. The two taxes are calculated on the same tiered rate structure but billed separately.

Here is how the math works on a $750,000 purchase:

Provincial Land Transfer Tax:

• 0.5% on the first $55,000: $275
• 1.0% on $55,001 to $250,000: $1,950
• 1.5% on $250,001 to $400,000: $2,250
• 2.0% on $400,001 to $2,000,000: $7,000
• Provincial total: $11,475

Toronto Municipal Land Transfer Tax (same tier structure):

• Municipal total: $11,475

Combined land transfer tax at $750,000: $22,950.

That number is not a rounding. It's specific to this purchase price and it is the single largest closing line item for most buyers. On a $900,000 purchase the combined total is approximately $29,000. On a $1,100,000 purchase it's closer to $38,000.

First-time buyer rebates: the exact numbers

If this is your first home purchase anywhere in the world, you qualify for two stacking rebates that meaningfully reduce the land transfer tax bill.

Ontario provincial rebate: Up to $4,000 against the provincial land transfer tax. This fully eliminates the provincial tax on purchases up to $368,333. On a $750,000 purchase, the rebate applies against $4,000 of the $11,475 provincial total, leaving $7,475 owing provincially.

Toronto municipal rebate: Up to $4,475 against the Toronto municipal land transfer tax. Combined with the provincial rebate, first-time buyers save $8,475 in total land transfer tax at closing.

On the $750,000 example, the combined land transfer tax drops from $22,950 to $14,475 for a first-time buyer. Still significant. But $8,475 is real money.

One trap to know: if you are buying jointly with a partner or family member who has previously owned a home, only your proportional share of the purchase qualifies for the rebate. If you own 50% of a $750,000 unit, you can claim the rebate against $375,000 of the purchase price, not the full $750,000. Your lawyer calculates this at closing.

If you're working through the overall first-time buyer process, the first-time buyer's guide to Toronto waterfront condos covers financing and process in more detail alongside these cost considerations.

Legal fees, disbursements, and title insurance

Legal fees for a standard Toronto condo purchase run $1,500 to $2,500 in lawyer fees, plus $300 to $700 in disbursements. Disbursements cover the title search, registration fees, and document processing. The total legal bill is typically $1,800 to $3,200.

Title insurance adds $200 to $400 as a one-time cost. It covers title fraud, errors in the title search, unpermitted work on the unit, and survey defects. Every real estate lawyer in Ontario will recommend it. It's not legally mandatory but the protection it provides for the cost is straightforward.

CMHC mortgage default insurance is a separate item. If your down payment is less than 20%, CMHC charges a premium of 2.8% to 4.0% of the insured loan amount, depending on down payment size. This premium is added to your mortgage principal and financed over the life of the loan, not paid in cash at closing, though the PST on the premium (8% in Ontario) is due in cash at closing and often gets missed in early budget calculations.

Adjustment items on the closing statement: what catches buyers off-guard

The Statement of Adjustments is the document your lawyer prepares at closing that reconciles all the credits and debits between buyer and seller. Most buyers have never seen one before and don't know what to expect.

Common adjustment items:

Property tax adjustment. The seller has likely prepaid property taxes for the calendar year or the current tax period. You reimburse the seller for the days after closing that you own the property. On a $700,000 Toronto condo with annual property taxes of roughly $4,200, a closing on April 24 means you owe the seller approximately $3,100 for the remaining 8+ months of the year.

Maintenance fee adjustment. Condo maintenance fees are typically paid in advance on the first of each month. If the seller paid June 1 and you close on June 15, you owe the seller half a month's fee. On a $900/month maintenance fee that's $450.

Utility adjustments. Less common in condos where utilities are bundled into the maintenance fee, but relevant where the unit has separately metered hydro or gas.

In total, adjustments rarely exceed $1,500 to $2,500. They don't change the headline calculation much, but buyers who haven't been warned about them sometimes experience genuine confusion about why the final wire transfer is larger than expected.

Reviewing the status certificate before closing will clarify which fees are prepaid and what the maintenance fee includes, which helps you anticipate the adjustment amounts.

The full closing cost stack at three price points

To make this concrete:

$600,000 purchase (first-time buyer):

• Land transfer tax (combined, after rebates): $9,325
• Legal fees and disbursements: $2,000
• Title insurance: $250
• Adjustments: $1,500 (estimate)
• Total closing costs: approximately $13,075

$750,000 purchase (first-time buyer):

• Land transfer tax (combined, after rebates): $14,475
• Legal fees and disbursements: $2,200
• Title insurance: $300
• Adjustments: $1,500 (estimate)
• Total closing costs: approximately $18,475

$750,000 purchase (not first-time buyer):

• Land transfer tax (combined, no rebate): $22,950
• Legal fees and disbursements: $2,200
• Title insurance: $300
• Adjustments: $1,500 (estimate)
• Total closing costs: approximately $26,950

These numbers use actual tax calculations, not rounded ranges. They exclude moving costs, any immediate renovation, and CMHC insurance PST if applicable.

What closing costs don't cover, and what to budget alongside them

Closing costs pay for the transaction. They don't cover what comes after. Two items worth including in the full budget picture:

Ongoing maintenance fees. From the month you close, maintenance fees run $0.55 to $1.00 per square foot per month in most Toronto waterfront buildings. A 750-square-foot unit at Pier 27 or a similar Harbourfront building will carry fees of $600 to $800 per month. These are distinct from closing costs but belong in the same financial planning conversation. The Toronto condo maintenance fees guide covers this in full.

Reserve fund status. If the building you're buying into has an underfunded reserve fund, a special assessment could follow within your ownership window. That's a post-closing cost risk that doesn't appear in your closing statement today but can show up as a $10,000 to $50,000 bill later. The special assessments guide explains exactly what to check before you close.

Closing costs are the known, calculable part of buying a Toronto condo. The unknowns tend to live in the building's financial health. Both deserve the same attention before you sign.

FAQ

How much are closing costs on a Toronto condo?

Budget 2.5–4% of the purchase price on top of your down payment. On a $750,000 condo that's roughly $18,750–$30,000. The single biggest line item is the double land transfer tax — provincial plus Toronto municipal — which alone can exceed $20,000 on purchases above $500,000.

What is the Toronto municipal land transfer tax rebate for first-time buyers?

First-time buyers in Ontario get a provincial land transfer tax rebate of up to $4,000, which eliminates the tax entirely on purchases up to $368,333. Toronto's municipal land transfer tax adds a separate rebate of up to $4,475. Combined, first-timers save up to $8,475 at closing.

Who qualifies for the first-time buyer land transfer tax rebate in Ontario?

You must be a Canadian citizen or permanent resident, at least 18 years old, and you must never have owned a home anywhere in the world. If you're buying with a partner who has previously owned property, only your portion of the purchase qualifies for the rebate.

What are adjustment items on a Toronto condo closing statement?

Adjustment items are credits and debits the vendor and buyer exchange at closing to true up prepaid and accrued expenses. Common ones include prepaid property tax and prepaid maintenance fees. They rarely exceed $1,000–$2,000 but they do catch buyers off-guard when they haven't been warned.

Is title insurance required when buying a Toronto condo?

It's not legally required, but every competent real estate lawyer in Ontario will insist on it. A residential title insurance policy costs $200–$400 one time and protects against title fraud, survey errors, and title defects. Skip it and you carry the risk yourself.

Can closing costs be rolled into a mortgage in Ontario?

No. Closing costs must be paid in cash at the time of closing. CMHC mortgage insurance can be added to the insured mortgage amount, but land transfer tax, legal fees, and all other closing items require liquid funds. Lenders do not finance closing costs.

Emma Pace, North Group Real Estate — Toronto waterfront condo specialist.