Are There Extra Closing Costs on a Luxury Toronto Home?

Luxury homes in Toronto come with significant closing costs, including higher land transfer taxes, legal fees, title insurance, and adjustments—often totalling 1.5%–4% of the purchase price.

On a $ 3 million+ property, these costs are not insignificant. They must be paid in cash at closing and cannot be rolled into your mortgage; therefore, planning is essential.

Key Luxury Closing Costs

• Land Transfer Taxes: In Toronto, you pay both the Ontario and municipal LTT. For homes over $3 million, the City of Toronto adds luxury tiers (3.5%–7.5%), pushing total tax bills into the six-figure range.
• Legal fees: Larger, more complex deals often require senior real estate lawyers with higher fees.
• Title insurance: One-time coverage protecting against title defects, liens, or ownership disputes.
• Adjustments: Buyers must reimburse sellers for prepaid property taxes, condo fees, or utilities.
• Appraisals & inspections: High-value homes may require multiple specialist inspections or assessments.
• Insurance requirements: Large estates and luxury condos often require more comprehensive property insurance.

Budgeting for High-End Purchases

For a $5 million Toronto home, closing costs can range between $75,000 and $200,000+, depending on taxes, legal needs, and property specifics. These are one-time costs due at closing, so luxury buyers must keep liquid funds ready in addition to their down payment.

The Fox Marin Team maps out all expected closing costs upfront for Fox Marin luxury buyers. From wealth transfer taxes to legal strategies, Fox Marin ensures you know exactly what to expect so your closing day comes with confidence, not surprises.

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