Example: a $1.2 million home, first-time buyers, minimum down payment
| Cost | Amount (approx.) | When |
|---|---|---|
| Ontario land transfer tax, after the $4,000 first-time buyer refund | $16,475 | Closing |
| Toronto land transfer tax, after the $4,475 first-time buyer rebate | $16,000 | Closing |
| PST on the mortgage insurance premium (8%) | $3,536 | Closing, in cash |
| Legal fees and disbursements | $2,000 to $3,000 | Closing |
| Title insurance (depends on purchase price and mortgage amount) | $500 to $1,500 | Closing |
| Property tax and utility adjustments | Varies | Closing |
| Home inspection | $300 to $900+ | Before or during the offer |
| Appraisal (if your lender charges for it) | $300 to $500 | During financing |
| Total | About $40,000 |
For how the two land transfer taxes and rebates work, see Land transfer tax in Toronto. For the mortgage insurance premium and its PST, see How much down payment do you need.
Add moving costs, home insurance (it must start before you get the keys), and a cushion for the unexpected: roughly $5,000 to $10,000 for a condo, or $10,000 to $15,000 for a house.
What about the deposit? The deposit, often around 5% of the price and due within 24 hours of an accepted offer (or even "herewith," submitted with the offer), isn't an extra cost. It's held in trust and counts toward your down payment on closing. You do need it in cash early, so plan for it.
Pro tip: check that you can actually get to your deposit fast. I've had buyers whose savings sat with online-only banks or investment apps, and when the offer was accepted, they were told it would take three to five business days to move the money. A deposit that arrives late can kill a deal. Before you start making offers, call your bank and ask: how quickly can I get this money out, and how do I send a bank draft or wire the same day? If the answer is "a few days," move the deposit amount into an account at a traditional bank ahead of time.
Buying a brand-new home? New builds come with HST, and right now there's significant relief on it:
- Ontario's temporary HST relief for all buyers: removes the full 8% provincial portion of the HST, worth up to $80,000, on a new home bought as your primary residence. Combined with federal relief, the total can reach $130,000. The agreement with the builder must be signed between April 1, 2026 and March 31, 2027. Construction has to start by December 31, 2028, and be substantially complete by December 31, 2031.
- First-time buyer rebates (federal and Ontario): remove the GST/HST on new homes up to $1 million, with partial relief up to $1.5 million. These run for agreements signed before 2031.
The clock is ticking on the temporary relief, with only a few months left. If a new build is on your list, use it to your advantage, and check the current rules and your eligibility with your lawyer before you sign with a builder.
