Understanding Closing Costs in 2026

Toronto Edition
🏡 Ana Bastas Realty | Experience the AB Advantage™

Closing costs often catch first-time buyers off guard — especially in a city like Toronto where unique taxes and additional fees apply. Understanding these costs early helps you budget properly, avoid surprises and move through the purchase process confidently.

Here are the essential closing costs Toronto buyers should prepare for in 2026.

1. Land Transfer Tax (LTT) — Provincial + Municipal

Toronto is the only city in Ontario with two land transfer taxes.
Buyers must pay both the Ontario Land Transfer Tax (LTT) and the Toronto Municipal Land Transfer Tax (MLTT).

First-time buyers may qualify for rebates, but budgeting for these taxes is essential.

Key factors

• based on purchase price
  
  
• due on closing
  
  
• rebates available up to certain limits
  
  

This is typically the largest closing cost.

2. Legal Fees & Disbursements

A real estate lawyer handles the legal aspects of your purchase.

Expect costs to include

• lawyer’s fee
  
  
• title search
  
  
• registration fees
  
  
• courier charges
  
  

These fees ensure your home is transferred legally and securely.

3. Title Insurance

Title insurance protects you from issues such as

• boundary disputes
  
  
• existing liens
  
  
• fraud
  
  
• errors in public records
  
  

This one-time fee provides long-term peace of mind.

4. Home Inspection (For Freehold Purchases)

Inspections provide a detailed assessment of the property’s condition.

Costs depend on

• home size
  
  
• age
  
  
• inspection depth
  
  

Even in competitive markets, inspections are highly recommended when possible.

5. Status Certificate (For Condo Purchases)

Toronto condo buyers must review the building’s financial and legal health.

The status certificate reveals

• special assessments
  
  
• reserve fund strength
  
  
• rules and bylaws
  
  
• litigation or financial concerns
  
  

This is critical for avoiding unexpected condo costs.

6. Appraisal Fee

Your lender may require a professional appraisal to confirm the property’s value.

This ensures the purchase price aligns with market value and mortgage requirements.

7. CMHC Insurance (If Applicable)

If your down payment is under 20%, you must pay mortgage default insurance.

CMHC premiums are typically rolled into your mortgage, but the PST on the premium must be paid upfront.

8. Adjustments on Closing

You may owe reimbursements to the seller for prepaid items such as

• property taxes
  
  
• utilities
  
  
• condo fees
  
  

Your lawyer will outline these adjustments prior to closing.

9. Moving Costs & Immediate Home Essentials

Many first-time buyers underestimate post-closing expenses.

Prepare for

• moving services
  
  
• utility setup
  
  
• furniture or appliance purchases
  
  
• cleaning and minor repairs
  
  

These smaller costs add up quickly.

10. Emergency or “Buffer” Fund

Smart buyers budget a safety cushion of 1–2% of the purchase price for unexpected expenses.

Examples include

• appliance replacement
  
  
• repairs discovered after move-in
  
  
• miscellaneous needs
  
  

Financial preparedness reduces stress during your transition.

What This Means for Toronto Buyers in 2026

Understanding closing costs ensures you move forward with clarity and confidence.

The AB Advantage™ helps you

• create a personalized closing cost breakdown
  
  
• understand all fees upfront
  
  
• avoid financial surprises
  
  
• prepare for a smooth transition into homeownership
  
  

Being well-informed is one of the strongest tools a buyer can have.

Ready to buy in Toronto with confidence?

Request your Closing Cost Breakdown & Buyer Consultation and experience the AB Advantage™.

📞 289.670.5888
🌐 www.anabastas.ca
🏡 Ana Bastas Realty — Serving Toronto, Halton, Hamilton, Oakville, Burlington, Mississauga & the Niagara Region