Purchasing a $1 million property in Toronto places you in a very specific, punitive tax bracket. For first-time buyers stretching to hit this mark, failing to properly estimate the closing costs can lead to financial disaster.
The Baseline Requirements
At $1 million, you must provide a minimum 20% down payment ($200,000). CMHC default insurance is not available for homes priced at $1 million or above. Your loan will be an uninsured $800,000.
The Line-by-Line Breakdown (Pre-Construction)
Here is what you must have sitting in your chequing account on closing day, assuming you are a first-time buyer and your lawyer successfully capped your levies.
| Closing Expense | Estimated Cost |
|---|---|
| Provincial Land Transfer Tax | $12,475 (after $4k FTHB rebate) |
| Toronto Municipal LTT | $12,000 (after $4,475 FTHB rebate) |
| Capped Development Charges | $12,500 (Assuming negotiated cap) |
| Utility Meters & Enrollment Fees | $2,500 |
| Tarion Enrollment Fee | $1,500 |
| Legal Fees & Title Insurance | $2,500 |
| Total Liquid Cash Required | $43,475 |
The Takeaway: On a $1M Toronto pre-construction condo, you need approximately 4.3% of the purchase price in raw cash on closing day, entirely separate from your down payment.