What closing costs should I budget for when buying a new condo in Ontario?

New condo closing costs in Ontario extend well beyond the purchase price. Planning for them in advance avoids a funding crisis on closing day.

Land transfer tax is calculated as a percentage of the purchase price using a sliding provincial scale. Buyers in Toronto pay a second, municipal land transfer tax that mirrors the provincial rate schedule up to $3,000,000, then rises to separate, much higher "luxury" rates on the portion of the price above that amount. First-time buyers may qualify for a provincial rebate of up to $4,000 and a Toronto rebate of up to $4,475 — amounts to confirm with your lawyer as they may be updated.

HST: unless the builder has factored the rebate into the purchase price and is assigning the rebate to themselves, you will owe HST on a new home and then claim the rebate. Ensure you understand which scenario applies.

Tarion enrolment fee: passed through by the builder as a closing adjustment.

Development charges and other adjustments: these can be significant and should be estimated before signing.

Legal fees: your lawyer's fee plus disbursements for searches, title insurance, and registration.

Title insurance: a one-time premium that varies by insurer, property value, and coverage, and is required by most lenders.

Moving costs, storage, and any occupancy fees accumulated during the interim period should also be factored in.

Ask your lawyer for a total closing cost estimate before your closing date so you can arrange the right amount of funds in advance.