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Additional Costs to Consider When Buying a Resale Property in Toronto

If you're buying a property in Toronto, there are several additional costs you’ll need to factor in.
March 5, 2025
If you're buying a property in Toronto, there are several additional costs you’ll need to factor in.
 
Of course, the primary expense is the purchase price, which includes your deposit, down payment, and the total cost of the property—typically partially mortgaged. However, beyond the purchase price, there are other expenses to consider.
 
In this blog, we’ll outline the key costs associated with buying a resale property in Toronto. Please note that this information applies to resale properties, not pre-construction properties, which have additional closing costs.
 

Additional Costs to Keep in Mind

Land Transfer Tax

Land Transfer Tax is a provincial tax applied to all real estate transactions. In Toronto, there is an additional municipal Land Transfer Tax. This tax is calculated as a percentage of the property's purchase price. First-time home buyers may be eligible for rebates.
 
You can use the Toronto Regional Real Estate Board’s Land Transfer Tax calculator to estimate this cost:
 
Land Transfer Tax Calculator
 

Example for a $1,000,000 Purchase:

Buyer Type Provincial Tax Municipal Tax Total Land Transfer Tax
Non-First-Time Home Buyer $16,475 $16,475 $32,950
First-Time Home Buyer $12,475 $12,000 $24,475

Legal Fees

You'll need to hire a real estate lawyer to handle the legal aspects of your purchase, including reviewing contracts and conducting a title search. Legal fees typically range from $1,500 to $2,500.
 

Home Inspection

A professional home inspection is highly recommended to identify any potential issues with the property before finalizing your purchase. A comprehensive inspection usually costs $300 to $400.
 

Moving Costs

Moving expenses can add up quickly. Whether you’re hiring professional movers, renting a truck, or purchasing packing supplies, expect to spend approximately $1,000 to $2,000.
 

Home Insurance

Home insurance protects your property against fire, theft, and other potential damages. The cost will vary based on your home’s value and the level of coverage you choose, but you should budget $500 to $1,000 per year.
 

Appraisal Fee

Most mortgage lenders require an appraisal to confirm that the property’s value meets or exceeds the loan amount. Appraisal fees typically range from $200 to $300, although some lenders may waive this fee.
 

Property Taxes, Condo Fees & Utilities

If the seller has prepaid any of these expenses, the costs will be pro-rated to the closing date. This ensures that the expenses are fairly divided between the buyer and the seller.
 

Final Thoughts

By factoring in these additional costs, you can better prepare your budget and avoid any unexpected financial surprises when purchasing your new home.
 
Keep in mind that these are just some of the most common expenses associated with buying a resale property in Toronto. Depending on your transaction, other costs may arise.
 
If you have any questions or need assistance with your home purchase, feel free to reach out!

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