We all know that the housing market in Toronto is unaffordable for so many, with downpayment costs only climbing higher.

Unfortunately, the same can be said for the amount first-time homebuyers can expect to pay upon closing.

Zoocasa, a Canadian brokerage, compiled estimates based on average home prices in 25 major markets across Ontario to find out how much first-time homebuyers will need to pay on closing day.

The average closing day cost in Ontario is $46,706, with the top five markets far exceeding the average.

The five most expensive closing day housing markets: 

1. Oakville
2. Richmond Hill
3. Vaughan
4. Toronto
5. Markham

Closing costs for first-time buyers in 25 markets across Ontario / Zoocasa

According to the study, Toronto comes in fourth place on the list with the average prices for homes for sale in Toronto hitting $884,385 which requires a minimum down payment of $63,439.

However, Toronto buyers are also subject to municipal land transfer tax (LTT). This means that even with first-time home buyer rebates factored in they face the highest total LTT bill of anyone in the province, at $19,850, contributing to a closing payment of $87,916.

• See also: 
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The first most expensive market is in Oakville, where the local average home price is comparatively higher than in other Ontario markets at $1,104,796 requiring the full 20% downpayment of $220,959.

No mortgage loan insurance premium is required, due to the 20% minimum down payment. Buyers will still pay $237,530 to close their home transaction with just the down payment cost.

The second most expensive market is Richmond Hill, where the average home price comes to $1,094,091. That requires a down payment of $218,818, and a final closing bill of $235,175.

Vaughan ranks as the third most expensive for closing costs. The average home price also comes above $1 million at $1,054681, requiring a minimum 20% down payment, but removing the need for mortgage default insurance and the associated PST.

Buyers can expect to pay a down payment of $210,936, leading to a total closing cost bill of $226,505.

After Toronto, in fourth place, is Markham with an average closing transaction cost of $82, 666.

While Toronto is still extremely expensive, it’s looking like buy a home in the city versus Oakville or Vaughan is the preferred choice.