You saved your down payment. You got your mortgage pre-approval. You even found the perfect place.

And just when you’re ready to move in…

WHAM.

A stack of surprise fees slaps you in the face on closing day.

They’re called closing costs, and if you don’t plan for them early, they’ll wreck your budget faster than a leaky roof.

This is the stuff nobody warns first-time buyers about. But that’s why you’re here - to be the exception.

Let’s break it down.

1. The 3 Biggest Costs That Hit Hard at Closing

Land Transfer Tax (LTT)

Every home purchase in Ontario triggers this.

If you’re buying in Toronto, you get hit twice: the provincial LTT and the municipal LTT.

First-time buyer rebate:

• Up to $4,000 off the provincial LTT (anywhere in Ontario)

• Up to $4,475 off the municipal LTT (if you’re buying in Toronto)

• That’s $8,475 in potential savings for Toronto buyers who qualify

If you’re not eligible? Expect a big number. And it’s due at closing — not later.

Legal Fees

You need a real estate lawyer. No way around it.

They handle your title registration, statement of adjustments, and mortgage paperwork.

Budget: $1,000 - $2,500
This isn’t the place to cut corners. A bad lawyer can cost more than a good one.

Mortgage Default Insurance

Put down less than 20%? You’re paying this.
CMHC, Sagen, or Canada Guaranty will cover the lender, and you cover the premium.

The premium gets added to your mortgage.

But the sales tax (PST)? That’s due upfront at closing.

2. The Sneaky Costs Most Buyers Don’t See Coming

These are the “oops, nobody told me” costs.

• Interest Adjustment - If your mortgage starts mid-month, you’ll owe interest from funding day until your first full payment.

• Property Tax Adjustments - If the seller prepaid taxes, you reimburse them for the unused portion.

• Title Insurance - Most lenders require it. It protects you against title fraud and registration issues.
  Cost: $250 - $500

• Inspection & Appraisal - Peace of mind isn’t free.
  Budget: $400 - $800 total

3. Extra Costs If You’re Buying New Construction

If you're buying brand-new, expect a few more items on your invoice.

• HST/GST - Often included in the sale price. But verify. Never assume.

• New Home Rebate - Applies to homes under $450,000 (some conditions apply).

• Tarion Warranty Fee - This protects you from defects.
  Expect to pay $600 - $1,200, depending on the builder.

4. What’s the Magic Number to Budget For?

Here’s your quick cheat code:

Closing costs = 1.5 - 2% of your purchase price.

So on a $700,000 home, you’ll need $10,000 to $14,000 in cash - not mortgage funds - on top of your down payment.

Miss this, and you’re scrambling to borrow at the worst possible moment.

5. Smart Moves to Stay in Control

• Open a “Closing Fund” - separate from your down payment

• Get a personalized estimate from your mortgage broker early

• Leave a cash buffer for the stuff no one tells you about (like moving, blinds, or that furnace that croaks a week after you move in)

Final Word: This Isn’t Scare Tactics - It’s Survival Strategy

Look, closing costs aren’t exciting. They don’t get TikTok views. They’re not fun to save for.

But the buyers who plan for them? They walk into their new home with peace of mind.

The ones who don’t? They get crushed.

Want to Know Exactly What Your Closing Costs Will Be?

Let’s run the numbers before you fall into the trap.

Book your free closing cost review at borcic.ca

Because owning your first home should feel like a win — not a wipeout.