Your down payment isn't the only cash you need on closing day. Plan for closing costs on top of it, and have the money ready before you write an offer.
The biggest one is land transfer tax. Here's how it works in Vaughan, and what else to budget for.
Land transfer tax in Vaughan
Every buyer in Ontario pays the provincial land transfer tax. It's charged in brackets on the purchase price, the same way income tax is.
The good news for Vaughan buyers: there's no municipal land transfer tax here. That only applies in the City of Toronto, where buyers pay it on top of the provincial tax. On a $1.2 million home, that's a five-figure difference.
Here's what the provincial tax works out to on a few Vaughan prices:
| Purchase price | Ontario land transfer tax | First-time buyer (after $4,000 refund) |
|---|---|---|
| $900,000 | $14,475 | $10,475 |
| $1,124,400 (Vaughan benchmark, Aug 2026) | $18,963 | $14,963 |
| $1,234,758 (Vaughan average, Aug 2026) | $21,170 | $17,170 |
| $1,500,000 | $26,475 | $22,475 |
Your lawyer calculates the exact amount. Land transfer tax can't be added to your mortgage, so it has to come from savings.
Legal fees and title insurance
Your real estate lawyer handles the title search, the mortgage documents and the transfer. Ask for a quote that includes disbursements and title insurance, so you're not surprised on closing.
Home inspection
For a resale home, an inspection is money well spent. If the market lets you, make your offer conditional on it. If you're in a multiple-offer situation, consider a pre-offer inspection.
Adjustments on closing
If the seller prepaid property tax for the year, you'll reimburse them for the days after you take possession. Your lawyer works this out in the statement of adjustments.
For property tax going forward, the City of Vaughan suggests a simple estimate: multiply the purchase price by the latest residential tax rate. If you're buying a brand-new home from a builder, your first-year bills may be based on the land only, with a catch-up bill once the house is assessed. Set money aside for it.
Mortgage default insurance
If you put down less than 20%, your mortgage needs default insurance. The premium is added to your mortgage, but in Ontario the provincial sales tax on that premium is due on closing in cash. Your lawyer collects it.
Moving in
Movers, utility hookups, window coverings, and the things a new house always needs in the first month. Small, but they add up.
Before you start viewing homes, know your full closing cost number, not just your down payment. I'm happy to work it out with you on the price range you're looking at.
