Closing Costs

Closing Fees: a term that refers to the various payments, taxes, and fees-other than the purchase price of the property –that the buyer must pay through the course of buying a home. So that you can budget effectively, I have included a list of the most typical expenses below.

Real Estate Fees: The amount of the real estate fees that you will have to pay is dependent on the agency relationship you choose (see Agency Relationships for more details).

Legal Fees: While legal fees will vary depending on the lawyer, buyers can expect to pay somewhere between $800- $1600 to close their real estate transaction.

Home Inspections: Once a suitable home is found, buyers are urged to purchase a home inspection ($400 and up a certified inspector). A termite inspection is an additional $275

Survey: It is strongly advised that each property have a survey. Frequently, the seller has one that can be transferred to the new owner, but a new survey costs approximately $900 - $1200. If a survey is unavailable, the buyer may wish to purchase title insurance, which is much less expensive. To learn more about title insurance, visit TitlePlus.

Title Insurance: Title insurance will protect property owners and mortgage against loss through adverse claims or hidden interests in their properties. This unique product was developed as a result of inadequate deed registry systems; the reliance on privately held mortgages, which were not always registered; and the somewhat haphazard manner in which lands were opened for settlement.

Mortgage Set-Up: There are often extra costs associated with setting up your mortgage, such as an appraisal fee ($150-$200), or insurance. Ask your lender for details.

Municipal Land Transfer Tax: As a taxation measure granted under the City of Toronto Act,2006, Toronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to purchases on all properties in the city of Toronto in addition to the Province's Land Transfer Tax. More information on taxation measures.

Teranet currently collects the Land Transfer Tax on behalf of the Province of Ontario. The City of Toronto designated Teranet to collect the Municipal Land Transfer Tax when your property transaction is registered by your real estate lawyer.

Teranet will be communicating MLTT procedures directly through real estate lawyers.

Municipal Land Transfer Tax Implementation

The Municipal Land Transfer Tax (MLTT) will be charged on properties purchased in Toronto and on disposition of all beneficial interests with closing dates on or after February 1, 2008.

Following the provincial government's Land Transfer Act and property transaction requirements, your lawyer will register your property transaction and at that time your MLTT will be collected. For more information on the collection of your MLTT, please contact your real estate lawyer.

Transition Rules: If your Purchase & Sale Agreement is executed on or before December 31, 2007 you are eligible for a full rebate.

Municipal Land Transfer Tax Rates

The MLTT will be charged on a graduated basis depending on the value of consideration paid for the property.

For property containing at least one, and not more than two, single family residences with a consideration value of:

Value of Consideration


Up to and including $55,000.00

0.5% plus

$55,000.01 to $400,000.00

1.0% plus

Over $400,000.00


For all other property with a consideration value:

Value of Consideration


Up to and including $55,000.00

0.5% plus

$55,000.01 to $400,000.00

1.0% plus

$400,000.01 to $40,000,000.00

1.5% plus

Over $40,000,000.00


FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding GST):



0 to $55,000.00

55,000.00 x 0.005 = $275.00

$55,000.01 to $400,000.00

$344,999.99 x 0.01= $3,450.00

$400,000.01 to $500,000.00

$99,999.99 x 0.02= $2,000.00

Total MLTT= $5,725.00

Rebate Opportunities

You may be eligible for a rebate of the MLTT if either of the following criteria is met:

  • Grand-Fathering - The Agreement of Purchase & Sale was executed on or before December 31, 2007 and the closing date is on or after February 1, 2008. In this case you will be eligible for a full rebate.
  • First-Time Purchaser - You are a first-time purchaser of a newly constructed or re-sale residential property. The rebate for first-time home purchasers is up to a maximum of $3,725.00.

If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically through Teraview version 6.0 software when he/she registers your transfer/deed.

The following links provide useful information and are a great place to start if you're considering buying a home.