Key Takeaways
- Budget roughly 1.5% to 4% of the purchase price for total closing costs, separate from your down payment.
- Land transfer tax is usually the single largest closing cost outside Toronto.
- Legal fees, title insurance, and a home inspection are common fixed or near-fixed costs regardless of price.
- Statement of adjustments items (like prepaid property tax) can add unexpected costs at the last minute if not budgeted for.
The main components of closing costs
Closing costs are the fees and taxes due on top of your down payment when a purchase completes. In Ontario, they typically total 1.5% to 4% of the purchase price, varying by price point and whether the municipality has its own land transfer tax.
- Land Transfer Tax (provincial, plus municipal in cities like Toronto — not Mississauga).
- Legal fees and disbursements (typically a flat fee plus registration and search costs).
- Title insurance, usually a one-time premium based on purchase price.
- Home inspection fee, if not already paid during the conditional period.
- Statement of adjustments items — reimbursing the seller for prepaid property tax or utilities.
- Mortgage-related costs such as appraisal fees, if required by your lender.
Why Mississauga buyers pay less than Toronto buyers
Because Mississauga does not charge a municipal land transfer tax on top of the provincial rate, total closing costs on a comparable purchase price are typically meaningfully lower than an equivalent purchase within the City of Toronto.
How to budget accurately
Ask your lawyer for an estimated statement of adjustments early in the process, not just at closing — this lets you confirm you have enough cash on hand beyond the down payment itself, which is a common source of last-minute stress for first-time buyers.