Buying a condo in London, Ontario is an exciting step—whether you’re a first-time buyer, downsizer, or investor. But beyond your down payment, there’s another critical piece of the puzzle: closing costs. These are often overlooked, yet they can significantly impact your budget if you’re not prepared.
In this guide, we’ll break down exactly what closing costs are, how much to expect, and the unique expenses that come with purchasing a condo in London.
What Are Closing Costs?
Closing costs are the one-time fees and expenses you pay when finalizing your real estate purchase. They are due on or before your closing date and cannot typically be rolled into your mortgage.
In Ontario, closing costs generally range from 1.5% to 4% of the purchase price.
Typical Closing Costs for Condos in London, Ontario
For condo buyers, closing costs are usually slightly lower than detached homes, but still substantial. On average, you can expect:
- $2,500 to $5,000+ for resale condos
- Higher costs for new or pre-construction condos
Your exact costs will depend on the purchase price, lender, and whether you’re a first-time buyer.
Breakdown of Condo Closing Costs
Here’s what you can expect when buying a condo in London:
1. Land Transfer Tax (LTT)
This is typically your largest closing cost.
- Calculated based on the purchase price
- Paid to the Ontario government
- First-time buyers may qualify for a rebate of up to $4,000
2. Legal Fees & Disbursements
A real estate lawyer is essential to close your transaction.
- Typically $1,000–$2,000+
- Covers title search, document preparation, and registration
3. Title Insurance
Protects you against title fraud or ownership issues.
- Usually $150–$500+
4. Condo-Specific Costs
This is where condos differ from houses:
Status Certificate Fee
- Around $100–$200
- Provides insight into the condo corporation’s financial health
Condo Fee Adjustments
- You may need to reimburse the seller for prepaid maintenance fees
5. Mortgage-Related Costs
Depending on your lender:
- Appraisal fee: $300–$500
- Mortgage insurance (if under 20% down)
- Possible lender or broker fees
6. Property Tax Adjustments
If the seller prepaid property taxes, you’ll reimburse them for your portion from the closing date onward.
7. Additional Costs to Budget For
These are often forgotten but add up quickly:
- Moving expenses
- Utility setup fees
- Home insurance
- Optional home inspection
Special Considerations for New or Pre-Construction Condos
If you’re buying a new condo in London, be prepared for additional “builder adjustments,” which may include:
- Development charges
- Tarion warranty fees
- HST (in some cases)
- Utility hook-up and meter installation fees
These can add thousands more to your closing costs, sometimes pushing totals well beyond typical resale ranges.
Tips to Avoid Surprises on Closing Day
- Get a cost estimate early from your lawyer and lender
- Review the status certificate carefully for financial risks
- Ask about all builder adjustments (if buying new)
- Keep extra cash reserves beyond your minimum estimate
Final Thoughts
Closing costs are a crucial part of buying a condo in London, Ontario. While they may not be as visible as your down payment, they are just as important—and must be paid upfront before you get the keys.
The good news? With proper planning and the right guidance, there are no surprises.
If you’re thinking about buying a condo in London and want a personalized estimate, working with a knowledgeable local realtor can help you budget confidently and navigate the process with ease.
