Buying a Home in Ontario: What You Need to Know About Closing Costs

Buying a home is an exciting milestone, but many buyers underestimate the additional costs involved in finalizing their purchase. While the down payment and mortgage are primary concerns, there are several closing costs that must be accounted for to ensure a smooth transaction.

Key Closing Costs to Expect

1. Land Transfer Tax

   In Ontario, buyers must pay a land transfer tax based on the purchase price of the property. If you're purchasing in Toronto, an additional municipal land transfer tax applies. First-time homebuyers may qualify for a rebate, reducing this expense.

2. Legal Fees and Disbursements

   A real estate lawyer plays a critical role in reviewing contracts, conducting title searches, preparing mortgage documents, and handling the closing process. Legal fees vary depending on the complexity of the transaction but are an essential cost of homeownership.

3. Title Insurance

   Title insurance protects buyers against potential title defects, fraud, unpaid liens, or encroachments. While not mandatory, most lenders require it as a safeguard.

4. Adjustments and Property Tax Reimbursements

   Buyers may need to reimburse the seller for prepaid property taxes, condo fees, or utility bills. These adjustments ensure that financial obligations are fairly distributed between both parties.

5. Home Insurance

   Most lenders require proof of home insurance before approving a mortgage. Ensuring your policy is in place before closing day is essential to avoid delays.

6. Mortgage Default Insurance (If Applicable)

   If your down payment is less than 20%, mortgage default insurance is required. This protects the lender in case of default and is usually added to your monthly mortgage payments.

   
   

How NW Law Can Help

At NW Law, we guide homebuyers through the closing process, ensuring that all legal and financial aspects are handled properly. We conduct title searches, review agreements, handle adjustments, and ensure mortgage conditions are met so you can focus on moving into your new home with confidence.

📍 Contact NW Law Professional Corporation for expert legal assistance:

📞 905-973-1529 | ✉️ nivetha@nwlpc.ca | 🌐 nwlpc.ca