Land transfer tax, legal fees, adjustments, and the cash you need beyond the down payment.
Land transfer tax
Ontario charges a land transfer tax on every purchase, calculated on a sliding scale against the price. Buy in the City of Toronto and a second, municipal land transfer tax is charged on top. First-time buyers can claim a rebate of up to $4,000 provincially and up to $4,475 in Toronto. It is paid through your lawyer on closing day, and it is almost always the largest closing cost.
Legal fees and title insurance
Your real estate lawyer searches the title, prepares and registers the transfer and the mortgage, moves the funds, and closes the deal. Their fee plus disbursements — registration, searches, couriers — is a separate line. Title insurance is a one-time premium that protects you and the lender against defects in title or fraud; most lenders require it.
Adjustments
If the seller has prepaid property tax, utilities, or condo fees past the closing date, you reimburse them for the unused portion on closing. The reverse is also true. Your lawyer reconciles this on the statement of adjustments so the final number you bring is exact.
New construction has its own list — HST treatment, development levies, and warranty enrolment among them. Ask for the full schedule before you sign, not after.
A working budget
Beyond the down payment, plan for roughly 1.5–4% of the price: land transfer tax, legal, title insurance, adjustments, a home inspection, an appraisal if the lender orders one, and the move itself. Set the money aside before you start searching, and the last week before closing is paperwork rather than panic.
