When purchasing a home, just having enough for a downpayment may not be sufficient. There are several other expenses. Here are some potential additional closing costs (approximate, please do your own research!):
Lawyer fees $800 - $1,200
Typically includes disbursements (i.e registering a deed, title search, easement search, etc)
Home inspection $500
Not mandatory but often suggested. In multiple offer situations, buyers may choose to waive the home inspection condition.
Land transfer tax
This tax is based on the purchase price, there may be an additional Municipal Land Transfer Tax (applicable to Toronto). It is the buyer's responsibility to pay the Land Transfer Tax upon closing. First time home buyers may receive a credit to cover part of this expense.
Title insurance $250
Covers costs associated with encroachment issues, existing title liens, title fraud etc.
Insurance costs for high-ratio mortgages
Applies if the downpayment is less than 20%. The insurance premium may be added to the mortgage principal. However, the tax charged on the interest premium will be collected on closing.
Property survey $750 - $1,000
Surveys provide details about the lot size, lines and dimensions (typically useful for erecting fences, home additions, etc.)
Prepaid property tax and utility adjustments
The seller may have pre-paid property taxes or utilities. They may need to be reimbursed on closing.
HST (included in purchase price of most resale homes)
HST is typically charged on new homes.
These additional costs may amount to a surprising amount. Please be sure to ask a lot of questions prior to purchasing a property. People often have to scramble last minute to cover unexpected expenses!