7 Closing Cost Mistakes to Avoid

You found the home, won the offer, lined up the mortgage — then a wave of fees arrives at the finish line. Closing costs trip up more Ontario buyers than almost anything else, usually because they were underestimated or forgotten entirely. Here are seven mistakes to avoid so closing day goes smoothly.

Key takeaways

• Closing costs typically run 1.5%–4% of the purchase price — budget for the full range.
• Land transfer tax is the biggest cost, and Toronto buyers pay it twice.
• Don't forget home insurance, adjustments, and the lawyer's fee.
• First-time buyers can claim rebates of up to $4,000 provincial and $4,475 in Toronto.
• HOMEH's Cashback Rebate, the industry's highest, can offset closing costs entirely.

Mistake 1: Underestimating the total

The single biggest error is assuming closing costs are trivial. In Ontario they typically run 1.5% to 4% of the purchase price — thousands of dollars that must be in your account on closing day, separate from your down payment. Always budget toward the upper end so a surprise doesn't derail your purchase. See the full list in closing costs in Ontario explained.

Mistake 2: Forgetting Toronto's double tax

Land transfer tax is usually the largest closing cost — and buyers in the City of Toronto pay it twice: once to the province and once to the city. On an $800,000 home that's roughly $24,950 in Toronto versus $12,475 in the 905. Don't budget the provincial figure if you're buying in the city. Compare in land transfer tax: Toronto vs the 905.

Mistake 3: Missing first-time buyer rebates

First-time buyers leave money on the table by not claiming their land transfer tax rebates — up to $4,000 provincially and an additional $4,475 in Toronto. Confirm your eligibility in do first-time buyers pay land transfer tax.

Mistake 4: Overlooking home insurance

Lenders won't release your mortgage without active home insurance. Buyers who wait until the last minute risk a delayed closing — or being stuck with a hard-to-insure property they're already committed to. Sort it before your offer firms up. See home insurance when buying a house.

Mistake 5: Ignoring closing adjustments

On closing you'll reimburse the seller for prepaid property tax, condo fees or utilities — these are called adjustments, and they're easy to forget. They're usually modest but still real cash due on the day. Learn how they work in what is an adjustment on closing.

Mistake 6 & 7: Skipping the lawyer math and leaving funds too late

Two final traps. First, buyers forget the lawyer's fee — legally required and typically $1,100 to $2,500 in Ontario. Second, they leave their funds too late; bank drafts and transfers take time to clear, and money that isn't in trust on the day can stall closing. Here's a quick checklist of the costs people most often miss:

Get funds in early

Send your down payment and closing costs to your lawyer a few days before closing so nothing clears late. See the full timeline in what happens on closing day.

Turn costs into cashback with HOMEH

The smartest move of all: get money back. HOMEH gives eligible buyers the industry's highest Cashback Rebate, which can offset your closing costs entirely. Estimate yours with the cashback calculator and check your exact bill with the closing cost calculator.