When your offer is accepted, you must provide a deposit—typically within 24 hours. In the competitive Etobicoke market, a standard deposit is usually 5% of the purchase price.
This is provided via bank draft or wire transfer and is held in a secure real estate trust account.
It is important to know that this is not an extra fee; this deposit goes directly toward your final down payment.
Your down payment requirements depend heavily on the price of the property:
Homes under $500,000: Minimum 5% down (very rare in Etobicoke outside of smaller condo units).
Homes between $500,000 and $999,999: 5% on the first $500k, and 10% on the remaining portion. (Mortgage default insurance via CMHC is required).
Homes $1,000,000 and above: A mandatory minimum of 20% down. Because the average detached home in Etobicoke sits well over the $1M mark, you must have this 20% available in cash.
While your offer is conditional, you will incur a few small out-of-pocket expenses to ensure the property is a safe investment:
Home Inspection: Typically $500 to $800. This is highly recommended for older detached homes in neighborhoods like Alderwood or Long Branch to check for foundation, plumbing, or roof issues.
Status Certificate: If buying an Etobicoke condo or townhome, the document costs $100. Your lawyer will review it to ensure the building is financially healthy.
Appraisal Fee: Roughly $300 to $500. Your lender requires this to confirm the home’s value before approving the mortgage (though some lenders will cover this cost as a courtesy).
Because Etobicoke is located within the City of Toronto, you are subject to two separate land transfer taxes: the Ontario Land Transfer Tax (OLTT) and the Toronto Municipal Land Transfer Tax (MLTT).
For a typical $1,200,000 property, this combined tax can amount to nearly $40,000.
Note for First-Time Buyers: If you have never owned property anywhere in the world, you are eligible for rebates on both taxes (up to $4,000 provincially and $4,475 municipally), significantly softening this blow.
You must hire a real estate lawyer to facilitate the transaction, transfer the title, and register the mortgage.
Legal Fees: Usually range from $1,500 to $2,500, plus disbursements (the small administrative costs of registering documents).
Title Insurance: Typically $300 to $600, purchased by your lawyer on your behalf. This protects you against past title fraud, property line disputes, or unknown liens left by the previous owner.
When you take possession, you must reimburse the seller for any bills they have already pre-paid beyond the closing date. This usually includes:
Pre-paid property taxes.
Pre-paid condo maintenance fees.
Pre-paid utilities or rental equipment (like a hot water tank).
Your lawyer will calculate the exact prorated amounts on a document called the Statement of Adjustments, typically adding $500 to $1,500 to your final closing bill.
