Buying your first home is one of those milestones that feels both thrilling and a little overwhelming.
Working closely with first-time buyers, we’ve learned that the most confident, stress-free homeowners are the ones who understand the full financial picture early on.
The purchase price is just the beginning. Other costs can sneak up on you if you’re not prepared, and those are the ones that can derail your budget or cause stress at closing. So, let’s walk through them together, using real numbers based on a $700,000 Toronto condo.
1. Land Transfer Tax (LTT)
This is the big one, and the one most first-time buyers underestimate.
In Toronto, you pay two land transfer taxes:
Ontario Land Transfer Tax
Toronto Municipal Land Transfer Tax
For a $700,000 condo, the combined LTT is roughly $20,950 before rebates.
First-time buyer rebates:
Up to $4,000 off the provincial LTT
Up to $4,475 off the Toronto municipal LTT
After rebates, you’re looking at about $12,475 in total.
�� Tip: If you want to avoid the municipal portion, consider buying outside the “416” area code anywhere in the Greater Toronto Area but beyond Toronto city limits.
2. Legal Fees
Your real estate lawyer handles the title search, registration, statement of adjustments, and closing documents, which are all essential to protecting you legally.
Expect $1,800–$2,500, including disbursements and HST.
This is not the area to cut corners; paying for a professional ensures your purchase is handled correctly and securely.
3. Home Inspection
Even for a condo, an inspection can be worth it, especially in older buildings or units with recent renovations.
Expect to pay $350–$600.
A small investment for peace of mind and valuable insight into the unit’s condition.
4. Appraisal Fees
Your lender may require an independent appraisal to confirm the property’s fair market value.
Sometimes the lender covers it; sometimes it’s your responsibility.
If it’s on you, budget $350–$550.
It’s an easy cost to overlook but worth factoring into your preapproval budget.
5. Mortgage Default Insurance (If Down Payment < 20%)
For a $700,000 condo, the minimum down payment is $45,000.
If you put down less than 20%, you’ll need mortgage default insurance (CMHC/Genworth/Sagen). The premium is rolled into your mortgage rather than paid upfront, but it affects your total repayment amount.
For a 10% down payment, the premium is approximately 3.1% of the mortgage amount, or about $20,000 added to your mortgage.
Understanding this upfront helps you choose the right strategy for your comfort level and affordability.
6. Title Insurance
This protects you from unexpected issues such as title fraud, undisclosed liens, or public record errors.
Expect a one-time cost of $300–$500, and it lasts for as long as you own the property.
It’s rarely used — but invaluable when needed.
7. Closing Adjustments
This is the line item that catches many first-time buyers by surprise.
You might need to reimburse the seller for prepaid:
Property taxes
Condo maintenance fees
Utilities
Special assessments (if applicable)
These adjustments typically range from $300–$1,000, but the exact amount depends on the timing of your closing date.
8. Moving Costs
Even if you’re bribing friends with pizza and coffee, moving expenses add up.
Budget $500–$2,000, depending on distance, the size of your move, and whether you hire professional movers or rent a truck.
9. Immediate Repairs or Upgrades
Even the most turnkey condo often needs a few personal touches.
Common post-move costs include new paint, upgraded light fixtures, curtains, minor repairs, or replacing aging appliances.
You may want to set aside $500–$5,000 for these personal updates.
10. Utility Set-Up and Deposits
When you open new accounts for hydro, gas, or internet, some providers may require deposits, especially if you’re a first-time customer.
Budget $100–$300 per utility just in case.
11. Condo Fees
For a $700,000 Toronto condo, monthly maintenance fees generally run between $450 and $900.
They cover building maintenance, common areas, utilities (in some cases), and contributions to the reserve fund.
Understanding what’s included and what’s not helps you compare buildings more accurately.
12. Ongoing Maintenance & Emergency Fund
Even condo owners should budget for the unexpected: special assessments, appliance repairs, or minor upgrades.
A good rule of thumb is to set aside 1–2% of your property value per year — roughly $7,000–$14,000 annually.
You likely won’t spend that much every year, but having a cushion keeps repairs from becoming financial stress points.
The Bottom Line
The most successful firsttime buyers aren’t those with the biggest budgets. They’re the ones who understand the full picture. When you know what to expect, you can make decisions confidently, negotiate effectively, and avoid lastminute surprises. Buying your first home should feel exciting and empowering. With the right preparation, it absolutely can.