Garden & Laneway suites

Buying a Home in 2025: What Expenses to Expect in Ontario and Toronto

Fri, 15 Aug 2025 13:21:14 GMT

Budgeting for a home involves more than the down payment and the monthly mortgage. Closing day comes with its own costs, and some expenses continue after you move in. Use this guide to understand what typically applies in Ontario and how Toronto buyers should prepare.

A quick rule of thumb

Plan for closing costs of about one and a half to four percent of the purchase price, not including your down payment. The exact number depends on your mortgage, property type, and location.

One time costs at offer or before closing

Deposit on the offer
Paid when your offer is accepted. It forms part of your down payment and shows the seller you are serious.

Home inspection
A professional inspection helps you understand condition and upcoming repairs. It is especially valuable for older GTA homes.

Appraisal
Your lender may order an appraisal to confirm value. Sometimes the lender pays. Often the buyer pays.

Status certificate for condos
If you are buying a condo, your lawyer will review the status certificate to assess the corporation’s financial health, rules, and any planned work. The certificate carries a small fee, usually around one hundred dollars.

Survey or title solution
Some lenders ask for an up to date survey or an equivalent title solution. In Ontario most buyers use title insurance arranged by the lawyer.

Legal and registration costs

Lawyer’s fees and disbursements
Your real estate lawyer handles the title search, reviews your Agreement of Purchase and Sale, prepares closing documents, and transfers funds. Disbursements include searches, couriers, and registration charges.

Title insurance
Common in Ontario and usually arranged through your lawyer. It protects against certain title issues and fraud that may not appear in traditional searches.

Land registration fees
Your deed and your mortgage are registered on title. Registration carries government fees set by the province.

Taxes and government charges

Ontario Land Transfer Tax
Charged on most purchases in the province. The amount is based on price bands.

Toronto Municipal Land Transfer Tax
If the property is in the City of Toronto, a second land transfer tax applies in addition to the provincial one.

First time buyer rebates
If you are an eligible first time buyer, you may qualify for provincial and Toronto rebates that reduce land transfer tax. Your lawyer will apply these on closing.

HST on new construction
HST applies to most new homes. Builders often include HST in the advertised price but your lawyer will confirm how it is handled in your contract. Rebate rules depend on end use, occupancy, and price caps.

Mortgage related costs

Mortgage default insurance premium
If your down payment is less than twenty percent, the premium for mortgage default insurance is added to your mortgage. In Ontario the provincial sales tax on that premium is paid on closing.

Interest adjustment
You may prepay interest from the closing date to the date your regular payments begin. Your lender will outline this in your disclosure.

Lender and broker fees
Some mortgages include setup or underwriting fees. Ask your lender for a full list early in the process.

Prorations and adjustments

Property tax adjustment
You will reimburse the seller for any prepaid property taxes, or receive a credit if taxes are in arrears.

Utilities and fuel
If the home uses oil or propane, the seller may charge for the remaining fuel. Water heater or HVAC rentals transfer at closing and continue as monthly charges unless you buy out the contract.

Insurance and protection

Home insurance
Your lender requires proof of insurance effective on closing. Confirm coverage for water, sewer backup, and overland flooding if they are relevant to the area.

Title insurance
Listed above under legal costs, but worth flagging again because most Ontario buyers rely on it rather than ordering a new survey.

Moving and immediate setup

Moving company or truck rental
Book early, especially at month end.

Locksmith and safety items
Plan to rekey locks and test smoke and carbon monoxide alarms on day one.

Utility connections and service fees
New accounts for electricity, gas, water, internet, and cable may include setup charges or deposits.

Cleaning and small repairs
Most buyers set aside a modest budget for paint, hardware, and minor fixes.

Situational or property specific costs

Condo monthly maintenance fees
These cover the corporation’s operating budget and contribution to the reserve fund. Factor in possible special assessments for major work.

New construction adjustments
Builders may charge items such as utility meters, Tarion enrollment, and development levy adjustments if they are not capped in your agreement. Review your Schedule of Adjustments with your lawyer.

Rural or special systems
Well and septic tests, water potability checks, and equipment service agreements may apply outside city services.

How to budget with confidence

Get a written pre approval so you understand your rate, payment, and maximum purchase price.
Ask your lender for a full list of expected charges including the interest adjustment and any lender fees.
Request a closing cost estimate from your lawyer based on your price range and location.
Add a small contingency for the unexpected so closing day is calm.

Have questions about closing costs or timing? Call (416) 347-3686 or send an e-mail and I will walk you through your next steps.

Buy First or Sell First in Toronto? 2025 Guide

Thu, 14 Aug 2025 21:00:57 GMT

Moving within the GTA comes with a key decision. Should you buy first or sell first in Toronto’s 2025 market? This guide compares risks, timelines, and financing so you can choose the sequence that protects your budget and reduces stress.

Selling First

Selling first gives you certainty. Once your sale is firm, you know your budget and your closing date. That clarity lets you write a clean and confident offer on your next home without worrying about carrying two properties. It also reduces financing stress because your lender can see the exact proceeds from your sale.

The tradeoff is timing. If you do not find the right place before your sale closes, you may need temporary housing and storage. Short term rentals in the GTA can be expensive and availability is uneven. Before you choose this route, line up a realistic backup plan such as a short lease, a month to month option, or a family stay. You can also ask your buyer for a flexible closing or a short seller leaseback agreement, which your lawyer can prepare if both sides agree.

Buying First

Buying first can make sense if you are targeting a very specific pocket or property type and you know they come up rarely. Securing the next home before listing your current one removes the pressure of rushing into a purchase that does not fit.

The risk is financial. If your current home takes longer to sell, you may need to carry two mortgages and two sets of bills. Before you buy first, speak to your lender about three items: deposit liquidity, mortgage portability, and bridge financing. You will need cash for the deposit on your new purchase because the equity in your current home is not available until closing. Porting or blending your existing mortgage may reduce penalties if you stay with the same lender. Bridge financing can cover the gap between sale and purchase closings, but it requires a firm sale and comes with interest and fees. Ask your lender for a written estimate so you know the exact carrying cost if your sale takes several weeks.

Also plan for appraisal risk. If you offer above recent sale prices, the bank’s appraisal may come in lower. That shortfall must be covered in cash. Your agent can help you assess this risk by reviewing comparable sales and the pace of new listings in your area.

Making a Conditional Offer

Some buyers choose to make their purchase conditional on selling their current home within a set period. In Ontario this is often paired with an escape clause that allows the seller to keep showing the property. If another buyer brings a firm offer, you will be asked to remove your condition within the agreed notice period, often 24 to 72 hours, or step aside.

This approach offers protection but limits negotiating power because many sellers prefer firm offers. If you use this strategy, strengthen your position with a realistic listing price for your home, professional preparation, and your listing paperwork ready to go live quickly.

How to Choose in 2025

Use recent and local facts to decide. Ask your agent for three quick reads:

The average days on market and sale to list ratio for homes like yours in your neighbourhood over the last 30 to 60 days.
The same numbers for the type of home you want to buy in the area you want to move to.
A net sheet that shows your proceeds after commissions, mortgage payout, penalties, and land transfer tax on the purchase.

If homes like yours are selling quickly at or near asking, buying first may be reasonable if your lender confirms affordable bridge options. If your property type is taking longer to sell, selling first is the safer path because it protects your budget and timeline.

Practical Tips for GTA Moves

Get a current mortgage pre approval before you do anything else. It informs every decision and strengthens your next offer.
Align closings with intention. Many buyers close the sale a few days before the purchase to allow for bridge financing and a smooth move.
Budget for real costs. Include moving, storage, legal fees, title insurance, home insurance, and Ontario or Toronto land transfer tax. First time buyer rebates do not apply if you already own a home.
Prepare your listing early. Photos, floor plans, and staging booked in advance give you the flexibility to list quickly when you find the right place.
Keep documents handy. Your lender will want your current mortgage statement, property tax bill, and recent pay information well before closing.

The Bottom Line

There is no single answer that fits every move. Selling first delivers certainty and protects your budget. Buying first secures the right next home but requires a clear plan for financing and timing. With accurate local data, a solid pre approval, and a strategy that matches today’s GTA conditions, you can choose the path that keeps stress low and results strong.

Ready to plan your move with confidence?
Book a short strategy call and I will map your timeline, financing steps, and market stats for your neighbourhood.

8 Common Mistakes to Avoid When Buying a Home in the Toronto Area in 2025

Wed, 13 Aug 2025 14:25:15 GMT

Buying a home in the GTA in 2025 is about more than just finding the right neighbourhood or house. It is about navigating a market in transition where price corrections, shifting demand across housing types, and economic uncertainty are all influencing the process. These are the most frequent missteps I see buyers make and how to avoid them.

1. Beginning your search without a current mortgage pre-approval

A mortgage pre-approval gives you clarity on your actual borrowing capacity and positions you as a serious buyer. It is especially important in 2025 now that interest rates have come down from their peak but inventory and pricing are moving differently depending on the property type. Pre-approval helps you act quickly when the right home becomes available and protects you from wasting time on properties outside your budget.

2. Letting a staged interior or tired décor sway your judgment

It is easy to be impressed by professional staging or discouraged by outdated finishes, but those things are surface level. Focus on the structure, layout, location, and overall condition of the home. These elements will impact your enjoyment and resale value far more than a paint colour or a set of throw pillows.

3. Skipping or rushing the home inspection

Many Toronto homes, especially older ones, can hide costly issues such as outdated wiring, aging plumbing, or foundation cracks. A professional inspection provides a clear picture of the property’s condition and helps you budget for repairs or decide whether to move forward at all. In competitive situations, a pre-offer inspection or a walk-through with an inspector can still provide valuable insight before you commit.

4. Signing an offer without fully understanding the contract terms

An Agreement of Purchase and Sale is a binding legal contract. Every date, clause, and inclusion matters, from the timeline for financing to what appliances will be left behind. Misunderstanding your obligations can create delays, disputes, or even cause you to lose your deposit. Review every detail with your REALTOR® and your lawyer before you sign.

5. Making offers based on list price instead of market comparisons

In the GTA, list prices often do not reflect actual market value. Some are priced low to encourage multiple offers while others are priced high to test the market. The only reliable way to decide on an offer is to review recent comparable sales in the same neighbourhood and factor in how long those properties were on the market. As of spring 2025, many condos are selling below list price while desirable freehold homes still attract strong competition.

6. Ignoring how the neighbourhood really functions

A home is part of a bigger picture that includes the streets, amenities, and community around it. Visit the area at different times of day to see what traffic, parking, and noise levels are like. Test the commute to work or school. Research parks, transit access, and any planned developments that could change the feel of the neighbourhood in the coming years.

7. Leaving home insurance decisions too late

Your lender will require proof of home insurance before closing and some properties, especially older ones, may need updates before they can be insured. Waiting until the last week before closing can delay the transaction. Begin comparing quotes as soon as your offer is accepted so you have time to address any issues.

8. Applying the wrong negotiation strategy for today’s market

The right approach to negotiation depends on the property type, the seller’s motivation, and current market conditions. In today’s condo market, buyers often have room to negotiate on price and terms. In sought-after freehold segments, it is often the size of your deposit, your flexibility on closing, and the cleanliness of your offer that will make the difference. An experienced REALTOR® will know which strategy fits the situation.

The takeaway

Buying a home in the GTA in 2025 requires preparation, market knowledge, and the ability to make decisions based on facts rather than emotion. By avoiding these common mistakes, you put yourself in a stronger position to secure the right home at the right price with fewer surprises along the way.

The Ultimate Guide to Homebuying: Step by Step Journey to Your Dream Home

Mon, 21 Jul 2025 13:24:52 GMT

Buying a home is an exciting and rewarding milestone but it can also feel overwhelming without the right preparation To help simplify the journey we’ve broken down the homebuying process into clear manageable steps Lets walk through each stage together

Step 1: Decide if Homeownership is Right for You

Homeownership offers stability investment potential and pride of ownership but it also brings responsibilities Consider your lifestyle future plans and whether you’re ready for the long-term commitment of home maintenance and financial obligations. Learn More

Step 2: Check if You’re Financially Ready

Assessing your financial readiness is crucial Evaluate your savings debt levels credit score and overall financial health This step includes budgeting for upfront costs like down payments closing costs and future expenses such as property taxes and insurance. Learn More

Step 3: Financing Your Home

Understanding your mortgage options is key Explore various types of mortgages interest rates preapproval processes and affordability Getting preapproved can make your home search smoother and demonstrates to sellers that you’re a serious buyer. Learn More

Step 4: Find the Right Home

Now the fun part begins - searching for your perfect home Identify your needs versus wants select a neighbourhood that aligns with your lifestyle and start touring homes Partnering with a trusted real estate professional can make this step much easier and stress-free. Learn More

Step 5: Make an Offer and Close the Deal

Once you’ve found the right home its time to make an offer Learn how to negotiate effectively navigate inspections and handle the closing process Clear communication and expert guidance from your realtor can ensure a smooth transaction. Learn More

Step 6: Maintain Your Home and Protect Your Investment

Congratulations-you’re officially a homeowner Now its essential to protect and enhance your investment through regular home maintenance appropriate insurance coverage and smart financial practices to safeguard your homes value over time. Learn More

Ready to Start Your Homebuying Journey - Check out the comprehensive consumers guide from CHMC

If you’re ready to take the first step toward owning your dream home or have questions about the process reach out today I’m here to provide knowledgeable guidance every step of the way ensuring your homebuying experience is both successful and enjoyable

Source: Canada Mortgage and Housing Corporation (CMHC)

New actions announced to encourage building of secondary suites in Canada

Wed, 04 Dec 2024 19:03:24 GMT

cited from a CTV Article

Federal Government Introduces New Housing Measures to Boost Affordability and Supply

The Canadian government has unveiled a series of housing-focused initiatives aimed at increasing home availability and affordability. These measures are designed to support homeowners, encourage the use of vacant land, and repurpose underutilized federal properties for housing.

1. Incentives for Adding Secondary Suites

Homeowners looking to create rental units, such as basement or garage suites, can now refinance their mortgage more easily. This program allows borrowers to access up to 90% of their home's value, including the value of the planned secondary suite. The refinanced mortgage can be amortized over 30 years, making it more affordable to finance these additions.

Additionally, the mortgage insurance home price limit has been increased to $2 million for such refinances, ensuring accessibility across Canada’s diverse housing markets.

2. Consultations on Taxing Vacant Land

The government is initiating consultations on implementing taxes for vacant land. The aim is to encourage landowners to develop properties rather than leaving them idle, contributing to increased housing supply. This measure invites feedback from provincial, territorial, and municipal governments to ensure its effectiveness.

3. Unlocking Federal Properties for Housing

Fourteen underused federal properties in cities like Ottawa, Quebec City, Cape Breton, and St. John’s have been added to the Canada Public Land Bank. This initiative now includes 70 properties in total, aligned with the Public Lands for Homes Plan. The goal is to transform these spaces into housing, helping to meet the country's growing demand for affordable options.

Why It Matters

These initiatives reflect the federal government’s commitment to tackling the housing crisis. By empowering homeowners to create rental units, discouraging underutilized land, and repurposing federal spaces, these measures aim to make housing more accessible and affordable for Canadians.

As Finance Minister Chrystia Freeland stated, “We must use every possible tool to build more homes and make housing affordable for every generation of Canadians.”

This multi-pronged approach holds promise for creating stronger communities and expanding the housing supply at a crucial time.

Hunter Crowther

CTVNews.ca National Digital Producer

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