You finally find the right home.

You've saved your down payment, received mortgage approval, and you're ready to make it yours.

Then your lawyer sends the closing statement.

Suddenly, you're paying thousands of dollars you never planned for.

This surprises many buyers—not because they weren't prepared, but because most conversations about buying a home focus on the purchase price and monthly mortgage payment. The other costs often don't get much attention until it's time to pay them.

Here's what you should plan for before making an offer.

Land Transfer Tax

In Ontario, every home purchase is subject to provincial Land Transfer Tax. If you're buying a home in Toronto, you'll also pay a Municipal Land Transfer Tax.

For many buyers, this is the largest closing cost after the down payment.

First-time home buyers may qualify for provincial and Toronto rebates, which can significantly reduce the amount owing. However, unless your rebates cover the full tax, the balance must be paid on closing day.

Mortgage Default Insurance

If your down payment is less than 20%, Canadian mortgage rules require mortgage default insurance.

The premium depends on the size of your down payment and is usually added to your mortgage instead of being paid upfront. While it doesn't increase your closing costs, it does increase the amount you borrow and the interest you'll pay over time.

Many first-time buyers don't realize how much this affects the total cost of owning a home.

Legal Fees and Title Insurance

Every real estate purchase in Ontario requires a lawyer to complete the transaction.

Your lawyer will review the documents, register the property, transfer funds, and make sure ownership is properly recorded.

Most buyers will also purchase title insurance, which protects against issues such as title defects, fraud, or certain ownership disputes. Many lenders require it as part of the mortgage process.

Together, these costs are an important part of your closing budget.

Home Inspection

A professional home inspection is one of the best investments you can make.

It won't guarantee a perfect home, but it can identify structural issues, safety concerns, or expensive repairs before you take ownership.

The inspection fee is paid before closing, and even if you decide not to proceed with the purchase, that cost is generally not refundable.

The Expenses That Come After Closing

Buying the home isn't the finish line.

Moving costs, home insurance, utility setup, changing locks, and small repairs often arrive within the first few weeks.

Even well-maintained homes usually need something sooner than expected—a new appliance, minor repairs, fresh paint, or routine maintenance.

That's why many financial professionals recommend keeping a maintenance reserve instead of spending every dollar on the down payment.

The Real Cost of Buying a Home

The down payment is only one part of the picture.

Closing costs and move-in expenses can easily add thousands of dollars to the amount you'll need before and shortly after taking possession.

Planning for these costs early can help you avoid financial stress and make your first months as a homeowner much more comfortable.

Start With the Full Picture

At AECORN Realty, we believe confident buyers make better decisions.

This article is intended for general information only and does not constitute legal, financial, mortgage, or tax advice. Costs, rebates, and eligibility vary based on the property, purchase price, lender, municipality, and individual circumstances.

You finally find the right home.

You've saved your down payment, received mortgage approval, and you're ready to make it yours.

Then your lawyer sends the closing statement.

Suddenly, you're paying thousands of dollars you never planned for.

This surprises many buyers—not because they weren't prepared, but because most conversations about buying a home focus on the purchase price and monthly mortgage payment. The other costs often don't get much attention until it's time to pay them.

Here's what you should plan for before making an offer.

Land Transfer Tax

In Ontario, every home purchase is subject to provincial Land Transfer Tax. If you're buying a home in Toronto, you'll also pay a Municipal Land Transfer Tax.

For many buyers, this is the largest closing cost after the down payment.

First-time home buyers may qualify for provincial and Toronto rebates, which can significantly reduce the amount owing. However, unless your rebates cover the full tax, the balance must be paid on closing day.

Mortgage Default Insurance

If your down payment is less than 20%, Canadian mortgage rules require mortgage default insurance.

The premium depends on the size of your down payment and is usually added to your mortgage instead of being paid upfront. While it doesn't increase your closing costs, it does increase the amount you borrow and the interest you'll pay over time.

Many first-time buyers don't realize how much this affects the total cost of owning a home.

Legal Fees and Title Insurance

Every real estate purchase in Ontario requires a lawyer to complete the transaction.

Your lawyer will review the documents, register the property, transfer funds, and make sure ownership is properly recorded.

Most buyers will also purchase title insurance, which protects against issues such as title defects, fraud, or certain ownership disputes. Many lenders require it as part of the mortgage process.

Together, these costs are an important part of your closing budget.

Home Inspection

A professional home inspection is one of the best investments you can make.

It won't guarantee a perfect home, but it can identify structural issues, safety concerns, or expensive repairs before you take ownership.

The inspection fee is paid before closing, and even if you decide not to proceed with the purchase, that cost is generally not refundable.

The Expenses That Come After Closing

Buying the home isn't the finish line.

Moving costs, home insurance, utility setup, changing locks, and small repairs often arrive within the first few weeks.

Even well-maintained homes usually need something sooner than expected—a new appliance, minor repairs, fresh paint, or routine maintenance.

That's why many financial professionals recommend keeping a maintenance reserve instead of spending every dollar on the down payment.

The Real Cost of Buying a Home

The down payment is only one part of the picture.

Closing costs and move-in expenses can easily add thousands of dollars to the amount you'll need before and shortly after taking possession.

Planning for these costs early can help you avoid financial stress and make your first months as a homeowner much more comfortable.

Start With the Full Picture

At AECORN Realty, we believe confident buyers make better decisions.

This article is intended for general information only and does not constitute legal, financial, mortgage, or tax advice. Costs, rebates, and eligibility vary based on the property, purchase price, lender, municipality, and individual circumstances.