Closing day housing costs in Toronto rank 4th most expensive in the province

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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  • Toronto’s luxury condo prices saw significant growth over past 12 months

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.