The Complete Cost Guide for Buyers and Sellers
Buying or selling a home in London, Ontario, is one of the most significant financial decisions you will make. While most people focus on the purchase price or sale price, the true cost of a real estate transaction goes far beyond that number.
From upfront expenses to closing costs and ongoing ownership costs, understanding the full financial picture is critical. Without proper planning, these additional costs can add up quickly and create unnecessary pressure at the worst possible time.
In most cases, buyers should expect closing costs to range from 1.5% to 4% of the purchase price, depending on the property and financing structure. That means, on a $750,000 home, total closing costs could range from roughly $11,000 to $30,000.
Whether you are buying your first home, upgrading, downsizing, or preparing to sell, this guide breaks down the real costs involved so you can move forward with clarity and confidence.
The True Cost of Buying a Home
While the down payment is the most visible expense, it is only one part of the total cost of buying a home.
As outlined in your current breakdown and supported by lender data, buyers need to account for a range of additional costs before closing.
Down Payment Requirements
Your down payment is your highest upfront cost and is based on the home’s purchase price.
- 5% for homes under $500,000
- 5% on the first $500,000 and 10% up to $999,999
- 20% or more for homes above $1 million
A larger down payment reduces your mortgage amount and can eliminate the need for mortgage insurance.
Mortgage Default Insurance (CMHC Insurance)
If your down payment is less than 20%, mortgage default insurance is required.
This cost typically ranges from 2.8% to 4% of the mortgage amount and is often added to your mortgage rather than paid up front.
Land Transfer Tax in Ontario
Land Transfer Tax is one of the most commonly underestimated costs when buying a home.
Ontario uses a tiered system, and while London buyers avoid a municipal land transfer tax, the provincial tax still applies.
For example, on a $750,000 home, the land transfer tax alone can exceed $11,000, depending on how the tiers apply.
First-time buyers may qualify for rebates, which can help offset a portion of this cost.
Hidden Costs of Buying a Home
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Legal Fees and Closing Costs
A real estate lawyer is required to complete your transaction.
Typical costs range from $1,500 to $2,500 and include title searches, document preparation, registration, and mortgage processing.
Legal fees are mandatory at closing and should always be factored into your budget early.
Title Search and Title Insurance
A title search ensures the property is free of liens, disputes, or ownership issues.
Title insurance protects against future risks such as fraud or registration errors.
Title insurance typically costs approximately $250, while title searches and related services may incur additional fees.
Home Inspection and Appraisal Costs
A home inspection helps identify potential issues before closing and is strongly recommended.
- Inspection: typically, $400 to $1,000
- Appraisal: typically, $300 to $600
These costs can vary based on property size, age, and location.
Property Taxes and Adjustments
At closing, buyers must reimburse the seller for any prepaid property taxes or utilities.
These adjustments vary by timing but can add several thousand dollars to your closing costs.
Insurance, Utilities, and Moving Costs
Beyond closing, additional costs begin immediately.
These include:
- home insurance (often required by lenders)
- utility setup and connection fees
- moving expenses
- immediate home needs or repairs
Even though these are not always considered “closing costs,” they can have a meaningful impact on your total budget.
The Hidden Costs of Selling a Home
While buyers face upfront costs, sellers also incur significant expenses that impact their net proceeds.
Real Estate Commission
Commission is typically the highest cost when selling a home.
It covers marketing, exposure, negotiation, and the full sales process. A strong strategy often leads to a higher sale price and better overall outcome.
Legal Fees for Sellers
Sellers also require a lawyer to complete the transaction.
Typical costs range from $1,000 to $2,000, depending on the complexity of the sale.
Mortgage Discharge and Penalties
If you pay off your mortgage early, you may incur a penalty.
This cost can vary significantly depending on your lender, interest rate, and remaining term.
Preparation and Staging Costs
Preparing your home for sale may include:
- staging (Elevate includes staging)
- cleaning
- minor repairs
- landscaping
These investments can significantly impact your final sale price.
Moving and Transition Costs
Selling also involves moving costs, storage, and potential overlap between properties.
Planning for these costs ensures a smoother transition.
Why Understanding Costs Matters
Understanding the full cost of buying or selling allows you to:
- budget accurately
- avoid last-minute surprises
- make stronger financial decisions
- negotiate with confidence
In today’s London market, preparation is one of the biggest advantages you can have.
Start Planning Your Next Move
If you are thinking about buying or selling in London, Ontario, understanding your full cost structure is the first step toward a successful transaction.
If you have questions or would like to walk through your numbers in detail, you can connect with us directly via the live chat on our website, reach out through our contact page, or call for immediate assistance.
📞 Call or Text: 519 933 6198
You can also contact us here: Contact Us Page
The Elevate Real Estate Group ( Brittany, Victoria, Stewart, Jeremy, and Caitlyn)
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Why Choose Elevate Real Estate Group?
Buying a home is a major decision, and because of that, the team you choose matters. At Elevate Real Estate Group, we take a hands-on, client-first approach that keeps you informed, supported, and confident from start to finish. Stewart Blair, Jeremy Odland, Brittany Wurfel, and Caitlyn Ford work together to combine experience, strategy, and local insight—so you benefit from a full team behind every move, not just a single point of contact.
At the same time, our deep understanding of the London, Ontario real estate market allows us to guide you with clarity and precision. From your first conversation through to closing day, we focus on making the process feel seamless, structured, and well-managed. Rather than reacting, we stay proactive—anticipating challenges, identifying opportunities, and helping you make decisions that align with your goals.
If you’re looking for a team that values communication, preparation, and results, you’ll feel the difference right away.