Pre-construction closing costs in Ontario: a complete checklist

The price on the agreement is not the whole cost. Builders pass on a set of charges on closing, called adjustments, and they vary a lot between projects.

The usual list

Land transfer tax: Ontario, plus Toronto's municipal tax for homes in the City of Toronto. First-time buyers get refunds.
Development charges and levies: municipal, regional, education and park levies. Check whether your agreement caps them.
Tarion enrolment fee: the warranty enrolment for your home, often charged back to the buyer.
Utility connections and meters: water, hydro and gas meter installation and hook-ups.
Law Society levy and title registration, plus legal fees and title insurance.
HST adjustments: if you do not qualify for the new housing rebate.
Interim occupancy fees (condos): paid monthly before final closing, not credited to the price.
Mortgage costs: appraisal, default insurance premium if under 20% down.

How to protect yourself

Ask for the closing-cost schedule before you sign and compare caps between projects.
Prefer agreements with capped development charges and fixed utility connection fees.
Keep a reserve of about 2% to 5% of the price for closing.
Have a real-estate lawyer review the agreement during the cooling-off period (condos).

Dinesh compares closing caps across projects so you can see the true cost side by side. Book a call

Quick answers

How much are closing costs on a pre-construction condo?

Plan on roughly 2% to 5% of the price beyond the deposit and mortgage, depending on land transfer tax, the development-charge cap in your agreement and the builder's adjustments. Your lawyer's statement of adjustments gives the exact figure.

What is a development charge cap?

A clause that limits how much of the municipality's development charges and levies the builder can pass on to you. Without a cap, increases between signing and closing can land on the buyer.

When do I pay land transfer tax on a condo?

At final closing, when the building is registered and title transfers to you, not at interim occupancy.

General information, not legal, tax or financial advice. Programs, limits and rebates change; confirm current rules with Dinesh Jindal, your real estate lawyer and your mortgage professional before you sign.