What Downsizing in Toronto Costs, Bill by Bill

The short answer

Toronto downsizing costs come in two sets, one for the house you sell and one for the home you buy. On the sale you pay commission and legal fees. On the purchase you pay legal fees, closing costs and two land transfer taxes, because the City of Toronto charges its own municipal land transfer tax on top of Ontario’s. Around both sit moving, condo fees if you buy a condo and whatever it costs to own two places at once if the dates do not line up.

Our complete guide to downsizing in Toronto covers the process. This post puts numbers on the costs that have them and explains how the others are set.

Real estate commission on the sale

Commission has no standard rate in Ontario. The Real Estate Council of Ontario says that you and the brokerage decide the amount you will pay for services and that the amount is not fixed or approved by RECO, any government authority or any real estate association or real estate board. It can be a fixed dollar amount, a percentage of the sale price or a combination of both.

Whatever you agree is written into your representation agreement, which RECO says must describe the services you will receive, what you will pay, how long the agreement lasts and whether you can cancel it. Read the holdover clause too. RECO explains that it can require you to pay the brokerage for a sale that happens after the agreement expires and that there is no set length for it. Our sellers page explains how we work with sellers who are also buying.

Legal fees on both deals

A downsizing move usually means two closings and each one needs a real estate lawyer. On the sale, the lawyer discharges your existing mortgage if you have one and transfers the title. On the purchase, the lawyer searches title, registers the transfer, pays the land transfer taxes and handles any new mortgage. Fees and disbursements are quoted by each firm, so ask for a written quote for both files at once.

Both land transfer taxes on the smaller home

Land transfer tax is paid by the buyer when the transaction closes, so it applies to the home you buy and not to the one you sell. In the City of Toronto that means two taxes. Ontario’s rates are 0.5% on the first $55,000, 1.0% up to $250,000, 1.5% up to $400,000 and 2.0% above that, with 2.5% above $2,000,000 on a home with one or two single family residences. Toronto’s municipal land transfer tax uses the same brackets up to $2,000,000, so the two amounts are equal for most downsizing purchases.

Purchase, City of Toronto median, August 2026	Ontario land transfer tax	Toronto municipal land transfer tax	Total
Condo apartment, $550,000	$7,475	$7,475	$14,950
Condo townhouse, $661,650	$9,708	$9,708	$19,416
Freehold townhouse, $962,000	$15,715	$15,715	$31,430

Worked example: a $550,000 condo apartment

1. First $55,000 at 0.5%: $275
2. Next $195,000, up to $250,000, at 1.0%: $1,950
3. Next $150,000, up to $400,000, at 1.5%: $2,250
4. Remaining $150,000 at 2.0%: $3,000
5. Ontario tax: $7,475
6. Toronto tax on the same brackets: $7,475
7. Total land transfer tax: $14,950

Worked example: a $962,000 freehold townhouse

1. First $400,000 through the lower brackets: $4,475
2. Remaining $562,000 at 2.0%: $11,240
3. Ontario tax: $15,715
4. Toronto tax on the same brackets: $15,715
5. Total land transfer tax: $31,430

The first-time buyer relief does not usually help a downsizer. Ontario’s refund of up to $4,000 and Toronto’s rebate of up to $4,475 both require that the buyer has never owned a home or an interest in one anywhere in the world. Above $2,000,000 the two taxes diverge and from April 1, 2026 Toronto added higher municipal rates on homes above $3,000,000. For any price, use our Toronto land transfer tax calculator and see our guide to land transfer tax in Toronto for the full rate tables.

Other closing costs on the purchase

The Financial Consumer Agency of Canada describes closing costs as one-time fees paid when you buy a home. Its examples are home inspection fees, legal fees, property tax adjustments and title insurance and it suggests being prepared to spend between 1.5% and 4% of the purchase price on them.

A property tax adjustment works both ways in a downsizing move. On the sale, you may be credited for tax you have already paid past the closing date. On the purchase, you may reimburse the seller for the same thing. Your lawyer calculates both in the statement of adjustments.

Condo fees and the status certificate

A condo apartment or condo townhouse comes with a monthly common expense fee. The Condominium Authority of Ontario says it pays for maintaining the common elements, contributing to the reserve fund and services such as cleaning, building maintenance and condo management. Add it to your monthly budget from the first day.

Before your offer is firm, your lawyer should review the status certificate. The CAO says a corporation can charge up to $100 including all taxes for it and must provide it within 10 days. It shows the current fee, the reserve fund and any special assessment the corporation knows about. Our guide to the condo status certificate explains the review.

Moving and the cost of two homes at once

Moving costs depend on how much you keep and how far you go, so get quotes once your closing dates are firm.

The larger risk is overlap. If you buy first and your sale closes later, you carry two sets of property tax, utilities and insurance, plus any bridge financing your lender offers. In Toronto an empty house has one more cost to watch. The City’s Vacant Home Tax applies to a residential property that was vacant for six months or more in a taxation year, at 3% of the property’s assessed value from the 2024 taxation year, unless one of the City’s listed exemptions applies. Every owner must declare occupancy each year by April 30.

Downsizing cost summary

Cost	Paid on	How it is set
Commission	Sale	Agreed with your brokerage in the listing agreement
Legal fees and disbursements	Sale and purchase	Quoted by your lawyer
Ontario land transfer tax	Purchase	Provincial brackets
Toronto municipal land transfer tax	Purchase in the City of Toronto	City brackets, higher tiers above $3,000,000 from April 1, 2026
Other closing costs	Purchase	Inspection, title insurance and adjustments
Condo fee	Every month after a condo purchase	Set by the condo corporation
Status certificate	Condo purchase	Up to $100 including taxes
Moving	Both	Quoted by movers
Carrying two homes	Only if dates overlap	Your mortgage, tax and utility bills

What to do next

1. Ask your brokerage what it charges and what that includes and read the listing agreement before signing.
2. Ask one lawyer for a quote on both the sale and the purchase.
3. Run your target price through the land transfer tax calculator to see both taxes.
4. If a condo is likely, add a realistic monthly fee to your budget and request the status certificate early.
5. Plan the order of your two closings to limit any overlap, using our post on whether to sell first or buy first.

Nothing in this post is legal, tax or financial advice for your situation. Confirm the figures that matter with your lawyer, accountant or mortgage professional and contact us when you want to work out the costs for your own move.