A practical guide from a Cornwall real estate agent who’s helped hundreds of people buy and sell in my 20 year career.
When people start planning for a home purchase, most of their attention goes toward the down payment and mortgage approval.
But as a Cornwall real estate agent, I can tell you the deals that get stressful at the finish line usually aren’t about financing.
They’re about the closing costs buyers didn’t fully plan for.
Whether you're buying a home in Cornwall, upgrading to something larger, or moving into a condo, understanding these costs early can make the difference between a smooth closing and a chaotic one.
If you're exploring the buying process, you can find more local tips here:
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Here’s what you should expect.
1. Land Transfer Tax (The Biggest Closing Cost)
In Ontario, buyers must pay Land Transfer Tax when purchasing property. This tax is based on the purchase price and is paid through your lawyer when title transfers.
Typical examples:
$400,000 home → approx. $4,475
$440,000 home (around our local average) → approx. $5,275
$1,000,000 home → approx. $16,475
First-time buyers may qualify for a rebate of up to $4,000, which helps significantly.
As a real estate agent in Cornwall, this is one of the first numbers I discuss with clients so they can budget properly before even starting their search.
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2. Legal Fees and Closing Adjustments
Your lawyer handles title searches, document preparation, adjustments, and the final transfer of ownership.
Most buyers in Ontario should expect:
$1,500 – $2,500 total
This includes legal fees, title insurance, and registration costs. While every deal differs slightly, this covers the majority of transactions I see locally when helping clients buy a home in Cornwall or the surrounding SDG region.
3. Home Inspection and Property Due Diligence
Inspections aren’t mandatory, but they’re strongly recommended.
Typical costs locally:
Home inspection (city property): about $450
Septic inspection (rural property): about $500
Well testing: (rural property) $400 (additional lab fees may apply)
Rural properties especially can have unique considerations. As someone who regularly helps clients buying in both town and country settings, I’ve seen how these inspections can prevent expensive surprises later.
For a full walkthrough of the buying process from start to finish, visit my buyer guide here:
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4. Appraisal Fees (More Common Than Before)
More lenders now require buyers to pay for appraisals as part of financing approval.
Typical cost:
$350 – $600
Not every purchase requires one, but it’s becoming common enough that I always suggest clients factor it into their budget.
5. Commercial Property Considerations
If you're purchasing investment or commercial property, closing costs can increase due to lender requirements.
These may include:
Environmental reports
Structural inspections
Additional due diligence reviews
Costs vary widely but can reach several thousand dollars depending on the property.
6. Insurance Requirements Before Closing
Insurance must be secured before your lender releases funds.
For rural properties, insurers sometimes require:
WETT certification for wood-burning fireplaces
Proof of well water safety
Septic system verification
These additional steps are common when buying a home in Cornwall’s rural areas and surrounding municipalities.
7. Deposit Requirements (Not a Closing Cost, But Still Important)
When your offer is accepted, a deposit is required.
In our market, deposits usually range between:
$2,500 – $5,000
While this money ultimately forms part of your down payment, it still needs to be available upfront.
I always make sure buyers understand this before we submit an offer so there are no surprises.
8. Bridge Financing Costs (If You’re Selling and Buying)
If you're selling a home in Cornwall while purchasing another, timing can create complications.
Bridge financing allows you to close on your new home before your current one sells, making the move far less stressful.
There are interest and administration costs involved, so this is something to discuss early with your lender if your dates may overlap.
How Much Should You Budget Overall?
For most Ontario buyers, I recommend planning for:
1.5% – 3% of the purchase price
For a typical $440,000 home locally, that means roughly:
$6,500 – $13,000
Budgeting this range helps ensure the closing process goes smoothly whether you're a first-time buyer, upgrading, or investing.
A Real Example From My Experience
I once worked with clients who qualified for their mortgage but came up short when their lender required a slightly higher down payment.
We adjusted the structure of the transaction and negotiated a small commission adjustment on the sale of their home so they could still secure the property they wanted.
That deal worked out because we planned early and communicated clearly throughout the process.
That’s something I prioritize with every buyer I work with.
Final Thoughts
Closing costs are simply part of the home buying process.
The key is understanding them early so nothing feels like a surprise when closing day arrives.
Whether you're buying your first home, investing, or upgrading, working with a knowledgeable Cornwall real estate agent can make the process far more predictable and far less stressful.
For more local real estate advice and buying tips, you can explore additional guides here:
👉 https://troyvaillancourt.com/blog.html