Every Brampton home buyer needs to budget for costs beyond the purchase price. Closing costs typically add 1.5% to 4% of the purchase price — on a $1 million home, that's $15,000 to $40,000 that needs to be liquid on closing day, in addition to your down payment.
Here's exactly what those costs are, with real numbers based on a typical Brampton purchase.
The full closing costs breakdown
Using a $1,000,000 purchase price with a 10% down payment ($100,000), here's what the closing costs look like:
| Cost item | Estimated amount | Notes |
|---|---|---|
| Ontario Land Transfer Tax | $16,475 | On $1M purchase. First-time buyers get up to $4,000 rebate. |
| Legal fees + disbursements | $1,800–$2,500 | Real estate lawyer. Varies by firm and complexity. |
| Title insurance | $200–$400 | Lender-required. Protects against title fraud and defects. |
| Home inspection | $400–$600 | Strongly recommended. Book with a licensed RHI inspector. |
| Property tax adjustment | $300–$1,500 | Seller is credited for prepaid taxes. Varies by closing date. |
| Utility adjustments | $0–$300 | Oil/propane tanks, condo maintenance prepayments. |
| Moving costs | $1,000–$3,000 | Local movers for a 4-bed detached in Brampton. |
| Estimated total (after first-time buyer rebate) | ~$17,000–$25,000 | Plus your down payment. Does not include CMHC (see below). |
Brampton vs Toronto advantage: Brampton is in Peel Region, not the City of Toronto. You only pay Ontario Land Transfer Tax — there's no additional Municipal Land Transfer Tax. On a $1M purchase, Toronto buyers pay an extra ~$16,000 that Brampton buyers don't. This is one of the most overlooked cost advantages of buying in Brampton.
Ontario Land Transfer Tax — the big one
Land transfer tax is calculated on a sliding scale. The Ontario rates are:
- 0.5% on the first $55,000
- 1.0% on $55,001 to $250,000
- 1.5% on $250,001 to $400,000
- 2.0% on $400,001 to $2,000,000
- 2.5% on amounts above $2,000,000
On a $1,000,000 purchase, the Ontario LTT works out to $16,475.
First-time buyer rebate
First-time buyers in Ontario receive a rebate of up to $4,000 on the provincial LTT. This completely eliminates the LTT on purchases up to ~$368,000, and reduces it on purchases above that. On a $1M purchase, your net LTT after the rebate is $12,475.
To qualify, you must be a Canadian citizen or permanent resident, you must not have previously owned a home anywhere in the world, and all buyers on title must qualify (if your co-buyer previously owned a home, you get a proportional rebate, not the full amount).
CMHC mortgage default insurance
If your down payment is less than 20%, your mortgage is "insured" — meaning the lender is protected by CMHC (or Sagen or Canada Guaranty). The insurance premium is added to your mortgage, not paid at closing, so it doesn't directly affect your upfront costs. But it does affect your total mortgage amount:
| Down payment | CMHC premium | On a $900K purchase |
|---|---|---|
| 5% | 4.00% | $34,200 added to mortgage |
| 10% | 3.10% | $24,955 added to mortgage |
| 15% | 2.80% | $21,420 added to mortgage |
| 20%+ | 0% | No premium |
Note: CMHC-insured mortgages are capped at a purchase price of $1.5 million (as of late 2024). This means purchases above $1.5M require a minimum 20% down payment.
Legal fees: what your lawyer actually does
Your real estate lawyer is responsible for:
- Conducting a title search to confirm the seller owns the property and there are no liens
- Receiving and disbursing funds from your lender
- Registering the property in your name on the Ontario Land Registry
- Preparing the Statement of Adjustments (the final cost reconciliation)
- Reviewing the Agreement of Purchase and Sale for any issues
Real estate legal fees in Brampton typically run $1,800–$2,500 all-in, including disbursements (title search fees, registration fees, bank charges). Don't shop on price alone — a real estate lawyer who closes dozens of transactions a month has fewer errors than one who does it occasionally.
Home inspection: don't skip it
At $400–$600, a home inspection is the cheapest insurance you'll ever buy. A licensed home inspector will check the roof, structure, foundation, electrical, plumbing, HVAC, and insulation — and issue a written report.
In a competitive offer situation, it's tempting to waive the inspection to strengthen your offer. If you're considering it, ask your agent about attending a pre-offer inspection (many sellers now arrange these). Never go unconditional on a property you haven't had inspected, unless you're prepared to absorb the cost of anything found.
Post-closing expenses to budget for: Utilities setup, appliances (if not included), immediate repairs flagged by your inspector, paint, and any cosmetic work you want done before moving in. These are separate from closing costs but should be part of your financial plan.
Summary: what to have ready at closing
On closing day, your lawyer will need you to wire the following to their trust account:
- Balance of down payment (total down payment minus your initial deposit)
- Closing costs (LTT, legal fees, title insurance, adjustments)
- Less any first-time buyer rebates your lawyer applies on your behalf
Your lawyer will send you a Statement of Adjustments a few days before closing that shows the exact wire amount. Don't arrange to receive wire transfer funds the same day — processing delays can push closing past business hours and delay your key pickup.
Want a personalized closing cost estimate for a property you're considering in Brampton? Our buyer agents run these numbers with buyers every day. Book a free 30-minute call — we'll walk you through exactly what to budget.