Every Cost, Every Step: The Complete Ontario Buying & Selling Checklist

1

TL;DR

Most buyers and sellers are caught off guard by closing costs. Beyond the purchase price, buyers should budget 1.5%–4% extra (up to 5%+ in Toronto with double land transfer tax), while sellers should plan for 4%–7% of sale price in total costs. Here’s every line item, the full timeline, and a day-one setup checklist.

Based on a $1,000,000 purchase price in Ontario:

Land Transfer Tax (Ontario)
Ontario charges a provincial land transfer tax on all purchases. On a $1M home, the Ontario LTT is approximately $16,475. First-time buyers receive a rebate of up to $4,000.

Toronto Municipal Land Transfer Tax
If you’re buying within the City of Toronto (not Mississauga, Markham, Richmond Hill, etc.), you pay a second, identical land transfer tax to the City — adding another ~$16,475. First-time buyers get a municipal rebate of up to $4,475. Outside Toronto, you only pay the provincial LTT.

Legal Fees
Budget $1,200–$2,000 for a real estate lawyer. This covers title search, registration, disbursements, and trust accounting. Don’t try to save money by choosing the cheapest lawyer you can find — errors on a $1M+ transaction cost more than the fee difference.

Title Insurance
Approximately $200–$400 for a lender + owner policy. Protects against title fraud, encroachments, survey issues, and certain zoning violations. I recommend it for every buyer.

Home Inspection
$400–$600. In competitive markets some buyers waive this, but it should be a strategic decision — not an accident of not knowing to ask for it.

Property Tax Adjustment
On closing day, the seller’s prepaid property taxes are adjusted between parties. Depending on the closing date and payment cycle, you may owe $1,000–$5,000 in adjustments.

Moving Costs
Local move within GTA: $800–$2,500. Long-distance: $3,000+. Book movers 4–6 weeks in advance for spring/summer closings.

Real Estate Commission
Typically 3%–5% of the sale price (covering both listing agent and buyer’s agent co-op), plus HST. On a $1M sale: approximately $35,000–$56,500 all-in. This is the single largest cost for most sellers.

Legal Fees
Seller’s lawyer: $900–$1,500, covering discharge of existing mortgage, title transfer, and document preparation.

Mortgage Prepayment Penalty
If you’re selling before your mortgage term ends, your lender will charge a penalty. For fixed-rate mortgages, this is the greater of 3 months’ interest or the Interest Rate Differential (IRD) — which can easily reach $10,000–$30,000 depending on your rate and remaining term. Call your lender and get this number in writing before listing.

Home Staging and Preparation
Basic cleaning and declutter: $500–$1,500. Professional staging for vacant or occupied homes: $2,000–$8,000 depending on size. Pre-listing repairs and touch-ups: highly variable. Homes that are well-presented consistently sell faster and for more money — staging has one of the best ROIs in real estate.

HST on Commission
Real estate commissions are subject to HST (13%). This is typically included in the commission quote you receive, but confirm with your agent.

Most GTA closings run 30–90 days from accepted offer to key exchange. Here’s the standard sequence:

Offer Accepted (Day 0): APS signed. Deposit due within 24 hours — typically a bank draft or wire transfer to the listing brokerage’s trust account.

Condition Period (Days 1–10): Complete home inspection, confirm financing approval from lender, begin title search. These conditions must be formally waived in writing — verbal confirmation is not sufficient.

Firm (Conditions Waived): Contract becomes unconditional. Deposit is non-refundable except in very limited circumstances. Both lawyers are formally engaged.

2–3 Weeks Before Closing: Lawyer orders title insurance, conducts searches. Buyers: book movers, arrange utility transfers (Enbridge, Toronto Hydro/Alectra, Rogers/Bell).

1 Week Before Closing: Purchase home insurance — your lender requires proof of coverage effective on closing date. Do the final walk-through inspection to verify property condition.

Closing Day: Lawyer registers the transfer and mortgage. Funds flow through trust. You pick up keys from your agent or lawyer’s office. Water, gas, and electricity are now in your name.

Critical Reminder on Home Insurance

Safety first: Change all door locks and garage codes — the previous owners or their contractors may have copies. Test smoke detectors and carbon monoxide alarms (Ontario law requires CO detectors adjacent to all sleeping areas). Locate the main electrical panel, water shutoff valve, and gas shutoff valve.

Utilities and services: Confirm gas, electricity, and water are in your name. Set up internet and cable. Register with the local municipality as the new property owner for tax billing purposes.

Address updates (time-sensitive): Ontario driver’s licence must be updated within 6 days of address change (ServiceOntario). Also update: bank accounts, CRA (My Account online), vehicle registration, insurance policies, employer records, and any government benefit programs.

Home systems inventory: Note the age and model of the furnace, central A/C, water heater, and electrical panel. Set reminders for annual furnace service and biannual HVAC filter changes. Find the main drain cleanout location in case of future plumbing blockages.

Community basics: Find out your garbage and recycling pickup day (usually listed on the city’s website by address). Introduce yourself to neighbours — good neighbour relationships are genuinely useful when you need to know about local contractors, issues with the property, or neighbourhood history.

Buying Process: Key Milestones

AZ