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Condo Closing Costs


The Quick Guide to Condo Closing Costs


Looking to enjoy the best that city living has to offer? If so, purchasing a condo, penthouse, or loft is sure to be exciting. That said, there are some logistics to tackle before you can settle into your new home. Paying closing costs is one of them. Fortunately, knowing what they are and how they’re calculated can help you create a budget—and simplify the buying process.

Here are some of the major condo closing costs you can expect…


While this sum is due within 24 hours after your offer is accepted, many buyers consider it a closing cost. Your deposit counts toward your down payment, and you can choose how much you offer. Just be aware that at least 5 per cent of your purchase price is standard in Toronto—and the more you’re willing to provide, the more attractive your bid will be.


When determining how much mortgage financing you’ll likely receive, your lender will have the value of the property you’re buying appraised. Often, they’ll cover this cost. If you pay it, the amount will likely be around $500.


If you buy a brand new unit, a pre-delivery inspection (carried out by Tarion) is part of the deal. When it comes to resale condos, many buyers opt to have their status certificate carefully reviewed by their lawyer instead. If you do have your resale unit inspected, be aware that common elements and shared systems aren’t included. The cost varies, but it’s typically somewhere around the $400 mark.

Legal fees

During any real estate transaction, having a lawyer perform your due diligence is crucial. Legal fees typically range from $500 on the low end to well over $1,500.

Title insurance

Most lenders require you to purchase title insurance, which protects them if issues such as back taxes or liens against your property arise. This sum may be included in your legal fees, but if you pay it separately, it will probably be somewhere between $200 and $400.

Land transfer taxes

Toronto condo buyers pay two types of land transfer taxes at closing: municipal and provincial. In each case, they’re based on the price of the home you buy. For both Toronto and Ontario land transfer taxes, here’s what you can expect to pay:

• 0.5 per cent of your purchase price on the first $55,000

• 1 per cent on any amount over $55,000 but under $250,000

• 1.5 per cent on any amount over $250,000 but under $400,000

• 2 per cent on any amount over $400,000 but under $2 million

• 2.5 per cent on any amount over $2 million


If the seller prepaid any property taxes, utilities, or maintenance fees, you’ll need to reimburse them for any time they’ve paid for that overlaps with your ownership. Your lawyer will work with theirs to make this process as straightforward as possible.


If the condo you’re buying is brand new, you’ll have to pay HST. This amount is the equivalent of GST (5 per cent of your purchase price) and PST (8 per cent), for a total of 13 per cent. For those who buy a home over $450,000, there’s a maximum rebate of $24,000 available.

Taxes on CMHC insurance

If you make a down payment of less than 20 per cent, you’ll need to buy CMHC (also known as mortgage default) insurance. This amount is between 2.8 and 4 per cent of your financing amount. The premium will be added to your mortgage, but you’ll have to pay the PST on it (8 per cent) at closing.

Careful planning is key

While securing a new condo or penthouse is certainly exciting, it requires a bit of planning. Fortunately, an agent with local condo expertise can help.

From neighbourhoods that meet your needs to the closing costs you can expect, the process is smoother when you find a professional with an impressive buying track record. Are you ready to kick off your condo purchase?

Ready to purchase your ideal condo? I have the expertise to find it—get in touch to learn how I can help today.