The Hidden Costs of Buying a Home in Toronto in 2025
What most buyers miss — and how I help you avoid surprise fees.
Thinking about buying a home or condo in Toronto this year? You’re not alone — and you’re not wrong to be cautious. Even as market prices stabilize, the true cost of buying a home in Toronto in 2025 is still a lot higher than just the number on the listing.
Most first-time buyers (and even some seasoned ones) forget to factor in the stack of “invisible” costs that come with closing a deal — from land transfer taxes to condo reserve fund top-ups to “Wait, where did all my money go?” moving day chaos. But here’s the thing: none of these should be surprises.
Every one of my clients gets a detailed breakdown of what to expect, how to plan for it, and where we can actually save. (Like the fact that my lawyer reviews your status certificate for free — more on that below.)
Let’s break it down so you’re not caught off guard when the final bill hits
💸 1. Land Transfer Tax in Toronto = Double Trouble
Let’s start with one of the biggest surprise expenses: land transfer tax. When you buy property in Toronto, you pay it twice — once to the province and once to the city. And no, it’s not rolled into your mortgage. This is a major upfront cost that many buyers underestimate.
🔍 Example:
$700,000 condo
Combined land transfer tax: ~$20,000
First-time buyer rebate: up to $8,475
Total out-of-pocket = ~$11,500
💸 2. Legal Fees (But I’ve Got You Covered)
Every real estate deal needs a lawyer to handle title transfers, disbursements, and make sure the property officially becomes yours. These costs add up quickly — unless you're working with me.
💡 Buy with me = free status certificate review.
Most lawyers charge $300–$500 for this — but not the one I work with. It's included when you’re my client.
🔍 Example:
Legal: $1,200
Title insurance: $350
Courier/registration: $400
Total: ~$1,950
🏠 3. Home Inspection or Status Certificate
This step is all about doing your homework on what you're buying. But what you need to investigate depends on whether you're buying a house or a condo.
If you’re buying a house, a home inspection is your early warning system — catching red flags like outdated wiring, leaky roofs, or foundation cracks before you're legally committed. It’s one of the smartest few hundred bucks you’ll spend.
🔍 Example:
You’re buying a $1.2M detached home in the Beaches. You hire a reputable home inspector to walk through every system in the house.
Inspection cost: $600
Peace of mind: priceless
If you're buying a condo, you don’t typically need a home inspection — but you do need to understand the financial and legal health of the building. That’s where the status certificate comes in. It discloses everything from reserve fund details to pending lawsuits and upcoming maintenance fees.
💡 Bonus: the seller pays for the status certificate — and my lawyer reviews it at no extra charge for my clients (normally $300–$500). the seller pays for the status certificate — and my lawyer reviews it at no extra charge for my clients (normally $300–$500).*
📦 4. Moving Costs, Setup Fees & Buyer Brain Melt
You’ve bought the home… now comes the flurry of costs to actually move into it. Think movers, internet setup, window coverings, and all the little things that don’t come with the unit but you definitely need.
🔍 Example:
First week post-closing:
Movers: $1,000
Couch + blinds + home stuff: $2,000+
Total: ~$3,000
📟 5. CMHC Insurance (If You’re Putting Less Than 20% Down)
This one hides in your mortgage, but it’s a real cost. If your down payment is under 20%, CMHC insurance is required to protect the lender — not you — and the premium can be hefty.
🔍 Example:
$600K home with 5% down
CMHC insurance = ~$22,800
Mortgage goes from $570K → $592.8K
Adds ~$150/month to payments
🏢 6. Property Tax Adjustments & Prepaid Expenses
When you buy a condo or a house, you may be responsible for reimbursing the seller for any property taxes, condo fees, or utility bills they've already paid past your closing date. These are known as prepaid adjustments and are calculated by your lawyer just before closing.
Sometimes, in pre-construction condos or newer buildings, there may be additional fees due on closing — like initial contributions to the building's contingency or reserve fund — but these are uncommon in resale properties. If they do apply, your lawyer will flag them early in the process.
📋 All of this gets tallied in a document called the Statement of Adjustments. It’s your lawyer’s final summary of what you owe, including all fees and reimbursements.
🔍 Example:
Seller prepaid June condo fees = $250
Reserve fund top-up = $500
Utility contract transfer = $35
Property taxes = $430
Total: $1,215 due on closing
💼 Final Thoughts:
The down payment is just the tip of the iceberg. But when you know what to expect — and have the right people in your corner — buying real estate in Toronto doesn’t have to be overwhelming.
I’ll help you:
Budget for every step of the process (yes, even the sneaky ones)
Avoid expensive surprises
Work with a legal team that keeps it simple (and doesn’t charge you extra for things like reviewing your condo’s status certificate)
If you’re buying in 2025 and want smart guidance, real strategy, and someone who’ll actually tell you the truth? I’m your Home Girl.
📅 Book a 15-minute call with me and let’s get your numbers (and game plan) sorted.
🙋♀️ FAQ Section
How much are closing costs in Toronto in 2025?
Most buyers should budget an extra 3–5% of the purchase price to cover closing costs, fees, and adjustments.
Do first-time buyers in Toronto get a tax rebate?
Yes! Up to $8,475 in land transfer tax rebates if you’re a first-time buyer in Ontario and the City of Toronto.
Do I need a lawyer to buy a condo in Toronto?
Yes — and the lawyer I work with doesn’t charge extra to review your status certificate. (That’s a $300+ perk.)
Is CMHC insurance optional?
Nope. It’s mandatory if you’re putting less than 20% down, and it’s added to your mortgage.
