By Jarrett Hunter, Realtor® | RE/MAX Your Community Realty

Buying a condo in Toronto involves more than saving for your down payment. One of the biggest surprises for first-time buyers is discovering how much additional money they need to complete the purchase.

Toronto buyers face a unique expense because they generally pay two land transfer taxes: one to the Province of Ontario and another to the City of Toronto. Add legal fees, closing adjustments, title insurance and other possible charges, and the total can be substantial.

Understanding these expenses before you make an offer is important. Here is what you should know about Toronto condo closing costs in 2026, including a practical example using a $700,000 resale condominium.

What Are Closing Costs When Buying a Toronto Condo?

Closing costs are the additional expenses associated with completing a real estate purchase. Most are paid through your real estate lawyer on or shortly before the closing date.

Some expenses, such as obtaining a status certificate, a property inspection or a mortgage appraisal, may arise earlier in the buying process.

For most resale condo buyers in Toronto, the major categories are land transfer taxes, legal fees, title insurance, adjustments for prepaid property expenses and mortgage-related charges where applicable.

These costs are separate from your down payment. If you are still determining how much you need to save, read my companion article: How Much Down Payment Do You Need to Buy a Toronto Condo?

1. Ontario Land Transfer Tax

Ontario charges land transfer tax when most real estate transactions are registered. The tax is calculated using graduated rates, which means different portions of the purchase price are taxed at different percentages.

For a $700,000 Toronto condo, the Ontario calculation is:

Eligible first-time homebuyers may qualify for an Ontario land transfer tax refund of up to $4,000. The refund is subject to eligibility requirements and can often be applied through the real estate lawyer at registration.

Source: Ontario Ministry of Finance — Calculating Land Transfer Tax

2. Toronto Municipal Land Transfer Tax

In addition to the provincial tax, buyers purchasing property within the City of Toronto generally pay the Toronto Municipal Land Transfer Tax.

At a $700,000 purchase price, the municipal tax is also $10,475.

That brings the two land transfer taxes to $20,950 before any applicable first-time buyer rebates.

Toronto introduced revised municipal land transfer tax rates for high-value residential transactions effective April 1, 2026. Those higher brackets apply above $3 million and do not change the calculation for the $700,000 condo used in this example.

The City also charges a Municipal Land Transfer Tax administration fee. For 2026, the published transaction fee is $102.56 plus HST, separate from the land transfer tax itself.

An important distinction: buying a condo outside Toronto’s municipal boundaries may mean you pay Ontario land transfer tax without the additional Toronto municipal land transfer tax, even if the property is marketed as being in the Greater Toronto Area.

Source: City of Toronto — Municipal Land Transfer Tax Rates and Fees

3. First-Time Homebuyer Land Transfer Tax Rebates

If you are buying your first home, you may be eligible for substantial relief on Toronto’s land transfer taxes.

The Province of Ontario offers eligible first-time homebuyers a refund of up to $4,000, while the City of Toronto offers its own rebate of up to $4,475.

For a qualifying buyer, the combined potential savings can reach $8,475.

To qualify, buyers generally must meet first-time ownership requirements and intend to occupy the property as their principal residence within the required period. Citizenship or permanent residency conditions also apply, and joint purchases can affect the amount available.

Do not assume you qualify simply because this is your first home purchase in Toronto. Previous ownership elsewhere, including outside Canada, may affect eligibility.

These rebates are separate from possible GST/HST rebates on qualifying newly constructed homes. The distinction matters because the tax treatment of a new condo can be very different from that of a resale unit.

Sources: Ontario First-Time Homebuyer Refund and Toronto MLTT Rebate Opportunities

4. Real Estate Lawyer Fees and Disbursements

A real estate lawyer plays an important role in the purchase process. Your lawyer will review and prepare closing documents, address title and registration requirements, coordinate mortgage funds and complete the legal transfer of ownership.

The final bill may include professional fees, applicable HST, registration charges, title searches, administrative costs and other disbursements.

Legal fees vary by firm and by the complexity of the transaction. I recommend getting a written estimate that distinguishes the lawyer’s professional fee from taxes, disbursements and third-party charges.

If you are purchasing a condominium, you should also have a lawyer experienced with condominium transactions review the building’s status certificate before you become firmly committed, preferably with an appropriate condition in the agreement of purchase and sale.

5. Title Insurance

Title insurance is commonly arranged during the closing process. It can provide protection against certain covered title-related risks, such as some registration errors, title fraud and other specified defects.

The precise coverage depends on the policy. Your lawyer can explain the available owner’s and lender’s coverage and whether the costs are already included in your closing estimate.

Title insurance should not be confused with home insurance or condominium insurance. Those policies serve different purposes.

6. Property Tax and Condominium Fee Adjustments

When you buy a resale condo, the seller may have already paid certain expenses covering dates beyond the closing date.

For example, if the seller has prepaid property taxes or the monthly condominium maintenance fee, the closing adjustments may require you to reimburse the seller for the portion covering your ownership period.

These adjustments appear on the statement of adjustments prepared for closing and reviewed by the lawyers.

The amounts depend on the closing date, payment schedule, and expenses already paid. They are not fixed charges that can be accurately calculated solely from the purchase price.

Condo buyers should also budget for the regular monthly maintenance fees, property taxes, personal insurance and utilities that will become ongoing ownership expenses after closing.

7. Condominium Status Certificate and Other Due-Diligence Expenses

Before completing a resale condo purchase, an important step is reviewing the condominium’s status certificate and accompanying documents.

The certificate provides information about the corporation, including its reserve fund, financial condition, common expenses, governing documents and disclosed legal matters.

In Ontario, condominium corporations may charge a maximum of $100, including applicable taxes, for a standard status certificate, which must be provided within 10 days after receiving a proper request and payment.

Depending on the circumstances, the buyer or seller may arrange and pay for the certificate. Buyers may also choose to obtain a home inspection or may need a lender-requested appraisal.

These costs may arise before the actual closing date, but should still be included in your purchasing budget.

Source: Condominium Authority of Ontario — Status Certificates

8. Mortgage Default Insurance and Other Financing Expenses

Buyers who purchase with less than a 20% down payment generally require mortgage default insurance, subject to the rules of the mortgage program.

The insurance premium may often be added to the mortgage amount. However, Ontario’s applicable provincial sales tax on the mortgage insurance premium cannot simply be added to the insured mortgage and may need to be paid separately at closing.

Lenders may also require an appraisal or impose other conditions that involve expenses.

Your mortgage broker or lender should provide an estimate of these costs before you remove any financing condition or finalize your mortgage arrangements.

9. Do You Pay HST When Buying a Toronto Condo?

For a typical previously occupied residential resale condo, HST generally does not apply to the purchase price.

Newly constructed condos are different. HST may apply, and the purchase agreement may include specific provisions relating to taxes, rebates, adjustments and occupancy.

Pre-construction buyers may also face interim occupancy fees, development-related adjustments and other builder closing charges that are not normally encountered in a standard resale transaction.

There can be exceptions to the usual resale tax treatment, including some substantially renovated properties or properties used for certain commercial purposes. Buyers should have their lawyer confirm the applicable treatment.

If you are considering pre-construction, ask for a careful review of the builder’s agreement and a full estimate of the costs payable on interim occupancy and final closing.

Source: CMHC — Ontario Condominium Buying Information

How Much Money Should You Have Available Before Closing?

Consider a buyer purchasing a $700,000 resale condo with a minimum down payment of $45,000, assuming they qualify for that financing arrangement.

The buyer would need the down payment, applicable land transfer taxes and sufficient additional funds for legal expenses, title insurance, closing adjustments, any mortgage insurance sales tax and other applicable charges.

For a buyer who does not qualify for first-time homebuyer land transfer tax rebates, the down payment plus land transfer taxes alone would total $65,950, before the other costs.

For a buyer eligible for the full $8,475 in land transfer tax relief, the corresponding amount would be $57,475, again before other closing expenses.

If a deposit was paid with the accepted offer, it normally forms part of the down payment rather than being an additional expense on top of it.

A lender may ask you to demonstrate that you have sufficient money available for closing costs in addition to the down payment. Your lawyer and mortgage professional can prepare the more precise transaction-specific estimates.

My Advice to Toronto Condo Buyers

One of the most common mistakes I see buyers make is focusing on the advertised purchase price and monthly mortgage payment without fully considering the cost of completing the transaction.

In Toronto, the second land transfer tax is particularly important. On a $700,000 condo, that municipal tax alone adds $10,475 before any qualifying rebate.

After more than 25 years helping Toronto buyers and sellers, my advice is to establish a complete budget before starting your search. That means speaking with a mortgage professional, understanding the amount of cash you’ll need, and allowing for expenses that may not be immediately obvious.

When I work with condo buyers, I also look beyond the numbers on the offer. The building’s maintenance fees, reserve fund, financial condition and resale potential all matter when deciding whether a particular property represents good value.

Buying a condo should be an informed decision, not a financial surprise on closing day.

Frequently Asked Questions About Toronto Condo Closing Costs

How much are closing costs on a $700,000 Toronto condo?

The provincial and municipal land transfer taxes total $20,950 before rebates. Eligible first-time homebuyers may reduce those taxes to $12,475. Legal expenses, administrative charges, adjustments and other applicable costs are additional.

Do first-time buyers pay land transfer tax in Toronto?

Yes, but eligible first-time buyers may qualify for up to $4,000 in Ontario land transfer tax relief and up to $4,475 in Toronto municipal land transfer tax relief. The actual refund depends on the circumstances and eligibility requirements.

Are closing costs included in my mortgage?

Generally, buyers need money available to pay closing costs separately from the down payment. Some mortgage insurance premiums may be added to the mortgage, but not all expenses can be financed. Confirm the details with your lender.

Do I pay HST on a resale condo in Toronto?

A typical previously occupied residential resale condo is generally exempt from HST on the purchase price. Exceptions may apply. Newly constructed condominiums have different tax rules.

When are Toronto condo closing costs paid?

Most closing costs are paid through your lawyer on or before closing. However, some due-diligence expenses, deposits, inspections and mortgage-related costs may be payable earlier.

Are closing costs higher in Toronto than elsewhere in Ontario?

They often are because Toronto generally charges its own municipal land transfer tax in addition to Ontario’s provincial land transfer tax. Other expenses vary by property, lender and transaction.

What additional costs should pre-construction condo buyers expect?

Pre-construction purchases can involve staged deposits, interim occupancy fees, builder adjustments, development-related charges, HST considerations and other contractual expenses. A lawyer should review the agreement and explain the potential costs.

Jarrett Hunter, Realtor® | RE/MAX Your Community Realty | Toronto, Ontario

This article provides general information based on published government rules and rates as of October 2026. Tax treatment, rebates, mortgage requirements and transaction expenses depend on individual circumstances and may change. Obtain a transaction-specific closing estimate from your real estate lawyer and mortgage professional.