When we talk about your buying budget, I don't stop at the down payment. I also want you to know what could be due before and on closing day, so the home you choose still fits once the keys are yours.
Start with a closing buffer: Keep money separate from your down payment for legal work, tax, inspections and moving. The amount depends on the price, financing and property. A rural home with a well, septic system or fuel tank can call for different checks than a serviced in-town home. Ask your lawyer and lender for transaction-specific figures before treating any estimate as cash you can spend elsewhere.
Closing Costs Checklist (What to Expect)
- Ontario land transfer tax and any refund you qualify for
- Legal fees, disbursements and registration costs
- Title insurance, if you choose it or your lender requires it
- Adjustments (property taxes, utilities, fuel, condo fees, etc.)
- Inspections and tests (home inspection, well water, septic, WETT where applicable)
- Lender requirements (appraisal, mortgage insurance if applicable)
- Moving and setup costs (insurance, utility hookups, deposits, mailbox/keys, etc.)
Ontario Land Transfer Tax
Ontario land transfer tax is generally due when you register the transfer. It uses graduated rates on the value of the consideration, which is usually—but not always—the purchase price. Ask your lawyer to calculate it for your transaction before you finalize your cash-to-close budget.
- Paid on closing through your lawyer
- Calculated on the value of consideration, typically the purchase price
- Eligible first-time buyers may qualify for an Ontario refund; the eligibility rules and refund limit matter
Note: If you’re buying your first home, it’s worth confirming eligibility early so your planning is accurate.
Legal Fees, Disbursements & Registrations
Your real estate lawyer coordinates the legal side of closing and protects you through searches, registrations, and documentation. Costs typically include professional fees plus transaction expenses (“disbursements”).
- Title searches and off-title inquiries
- Mortgage registration and lender instructions
- Funds transfer, trust accounting, and closing documents
- Registration fees, couriers, document production, and third-party search costs
Planning tip: Legal fees can vary based on complexity (rural properties, private services, estate sales, power of sale, boundary/access issues, etc.). Your lawyer will quote and confirm.
Title Insurance
Title insurance is common, but it is not required by Ontario law. Your lender may still have its own requirements. If you buy a policy at closing, your lawyer can help arrange it and explain what it does—and does not—cover.
- Title defects and certain errors in public records
- Fraud/forgery and some identity-based title risks
- Some liens, encroachments, or survey-related issues (coverage depends on the policy)
Important: Coverage varies by insurer and policy type. Your lawyer will explain what’s included and what isn’t for your specific purchase.
Adjustments (The “Prorated” Costs Buyers Forget)
Closing day isn’t just “pay the purchase price.” The statement of adjustments balances prepaid or ongoing costs between buyer and seller as of the closing date.
Common adjustments include:
- Property taxes: If the seller has prepaid part of the tax period, you reimburse from closing day forward.
- Utilities: Sometimes water/sewer accounts or final meter readings are reconciled through adjustments.
- Condo fees: If applicable, monthly fees are adjusted to the closing date.
- Fuel: In rural homes, oil/propane may be adjusted based on remaining fuel (and whether a tank is owned vs. rented).
Which adjustments apply depends on the property and agreement. Ask your lawyer for the expected statement of adjustments; don’t assume every item on this list will be charged.
Inspections, Tests & Property-Type Extras (Sudbury-Specific)
The property's services and condition can change what you spend before closing. Outside core serviced neighbourhoods, ask early whether a well, septic system or heating-fuel agreement needs a separate check.
Standard Home Inspection
- General inspection fee (structure, roof, electrical, plumbing, heating, attic/insulation, ventilation, moisture risks)
Related guide: What to Expect from a Home Inspection in Sudbury.
Well Water
- Potability test and/or flow testing (when applicable)
- Follow-up testing if results require confirmation
Septic
- Septic inspection (and in some cases pumping to allow a proper evaluation)
- Clarifying age, capacity, and any paperwork/history available
Heating Fuels & Safety
- Propane: tank ownership vs. rental, assignment/transfer fees where applicable
- Oil: tank age/certification questions, insurance requirements, or removal costs if needed
- Wood stoves: WETT inspection when appropriate or requested
Those checks are part of deciding whether the property fits your budget, not reasons to avoid it. If you are considering land without an existing home, read my vacant-land buying guide before assuming the same closing-cost plan will apply.
Lender & Financing-Related Costs
Depending on your mortgage and down payment, your lender may require additional steps or products:
- Appraisal: sometimes required to confirm value for financing
- Mortgage default insurance: generally required by lenders for a down payment under 20%. It protects the lender, not you; ask your lender how the premium and any applicable tax affect your cash needed at closing.
- Interest adjustment: some lenders charge interest from closing date to the first payment date
Before using a lender's possible maximum as your search price, work through pre-approval and a comfortable budget. Pre-approval is not final financing.
Moving, Setup & First-Week Costs
- Moving trucks, storage, and time off work
- Utility hookups/transfers and potential deposits
- Home insurance starting on or before closing (often required by lenders)
- Immediate maintenance items (filters, locks, smoke/CO detectors, minor fixes)
Turn the list into your cash-to-close plan
I would put three numbers beside a specific home: the down payment, the closing expenses your lawyer and lender expect, and money you want to keep available for moving and the first repairs. Then we can decide whether that home still belongs in your search. The exact statement of adjustments and final lender requirements come later, so leave room for them.
The closing and moving guide explains the handoff once an offer is firm. For the full path from preparation to keys, see the Buyer Experience. When you have a comfortable range, MLS® Smart Search can help us filter homes without using every dollar the lender might allow.
Expect Moore for Your Real Estate.
— Chad Moore, REALTOR® | Lake City Realty