The total cost of buying a condo in Toronto is more than just the purchase price. Buyers need to account for several additional costs that occur during the transaction and immediately after closing.
The largest additional cost for most buyers is land transfer tax.
In Toronto, buyers must pay two land transfer taxes: the Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax. These are calculated on a sliding scale based on the purchase price of the property.
For example, a condo purchased for $800,000 would generate approximately $24,000 in combined land transfer tax before any rebates.
First-time buyers may qualify for rebates that reduce this amount.
Another cost is legal fees, which typically range between $1,500 and $2,500 depending on the lawyer and complexity of the transaction.
Buyers must also purchase title insurance, which protects against issues with the property’s title. This usually costs between $300 and $500.
Because condos are part of a condominium corporation, buyers will also need to review the building’s status certificate. The status certificate contains financial and legal information about the condo corporation. The certificate itself usually costs about $100-400, and the lawyer will charge a fee to review it.
Buyers should also expect adjustments on closing. These occur when the seller has prepaid expenses such as property taxes or maintenance fees that extend beyond the closing date. The buyer reimburses the seller for the unused portion.
Additional costs can include moving expenses, mortgage appraisal fees, and utility setup costs.
In most Toronto condo purchases, buyers should budget approximately 1.5% to 4% of the purchase price for closing costs and transaction-related expenses, depending on the property and the buyer’s situation.