Don’t get surprised at closing.

Budget beyond the down payment.

Closing costs are the fees and taxes due on the day your purchase completes — separate from your down payment, and often underestimated by first-time buyers. As a rule of thumb, plan to set aside 1.5% to 4% of your purchase price for closing costs, with land transfer tax usually the single largest line item.

Legal fees cover your lawyer’s work reviewing the agreement, conducting a title search, registering the transfer, and handling mortgage funds. Title insurance protects against title defects or fraud discovered after closing. A home inspection, while technically a pre-offer cost rather than a closing cost, is budgeted alongside these since it’s due before you’re committed. Land transfer tax — provincial, and municipal if you’re buying in Toronto — is calculated on a marginal bracket system and is typically the biggest single closing expense.

These figures are estimates for illustration only. Legal fees, title insurance and inspection costs vary by provider and property, and land transfer tax rebates and Toronto’s brackets above $2,000,000 can change — always confirm your exact costs with your real estate lawyer before closing.