One of the most common surprises for buyers — especially first-timers — is realizing the down payment isn't the only money due at closing. As a general rule of thumb, budget an additional 1.5% to 4% of the purchase price on top of your down payment. Here's exactly what that covers.
Land transfer tax (and the first-time buyer rebate)
Ontario charges land transfer tax on every purchase, calculated on a sliding scale based on price. First-time buyers can claim a rebate of up to $4,000 against it. Outside Toronto — which includes everywhere in our London, St. Thomas and Kitchener-Waterloo-Cambridge coverage area — there's no additional municipal land transfer tax on top.
Legal fees and disbursements
A real estate lawyer typically charges a flat fee plus disbursements (title search, registration fees, courier costs) — usually somewhere in the range of $1,000–$2,000 total depending on the complexity of the transaction.
Home inspection
A professional inspection typically runs a few hundred dollars and is worth every cent, even in a competitive market — it's far cheaper than discovering a major issue after you've already closed.
Title insurance
A one-time fee, usually a few hundred dollars, that protects you against title defects, fraud, or survey issues that weren't caught during the purchase process. Most lawyers arrange this automatically as part of closing.
Adjustments at closing
If the seller has prepaid property taxes or utilities beyond the closing date, you'll reimburse them a pro-rated amount at closing. This is a real cost, but it's also one your lawyer will calculate and explain clearly before you sign anything.
Moving costs and immediate repairs
Leave room in your budget beyond the closing costs themselves — movers, a locksmith to rekey, and the small fixes every new homeowner discovers in the first month all add up faster than people expect.
Don't let this be a surprise
I walk every buyer through a full closing cost estimate before they write an offer, not after — so there are no surprises on closing day. If you're starting to think about buying, let's put real numbers to your specific purchase.
