Closing costs are the costs you incur when you buy or sell real estate.

For the sake of simplicity we will review the closing costs for a 10-plex in Toronto. This is important as Toronto has a double land transfer tax.


We will say that this 10-plex is for sale at $2,000,000 ($200,000/unit).

In Ontario; the way Land Transfer Tax (LTT) is calculated is as follows:


  • 0.5% on the first $55,000 of the purchase price
  • 1.0% on the next $55,000 to $250,000
  • 1.5% on any amount over $250,000

The city of Toronto calculates their LTT as follows:

  • 0.5% on the first $55,000 of the purchase price
  • 1.0% on the next $55,000.01 to $250,000
  • 1.5% on the next $250,000.01 to $400,000
  • 2.0% on on any amount over $400,000

As you can see, both amounts are quite close (and yes you have to pay both of them :))


The Toronto LTT is $37,300.
The Ontario LTT is $29,300.
The Total Land Transfer Tax Costs Are: $66,000!

It’s not just putting 35% down and that’s all. There are many more expenses incurred as soon as you have an accepted offer!

In addition to the LTT aforementioned; here are some of the other expenses you can encounter when buying a multi-family property and examples of some of the costs.

  1. Building Inspection:
    Most building inspectors for multi-family properties charge “per door” and can range from $350-$600 per unit. At an average of $500 per unit; this building’s inspection would cost $5,000+Tax
  2. Appraisal:
    Sometimes a lender will request a drive-by appraisal which essentially means they just want to verify the property they are lending on is actually what they are being told. This cost ranges from $300-500 usually. If a proper appraisal is required; the costs vary significantly depending on who is doing the appraisal and can cost anywhere from $1,500 to $3,500 or more. For our 10-plex; let’s say $2,000.
  3. Survey:
    ALWAYS INSIST that any of my clients (buying or selling) hire a professional surveyor to create a fresh survey. This way nobody is guessing. The average cost is $1,500-$2,500. Let’s say for our building it will be $2,000.
  4. Legal:
    Lawyer’s are integral to your transaction and while you can usually find a “cheaper” one, I always suggest you go with a lawyer that is experienced in your specific trade type. The average cost for a lawyer plus disbursements (their costs) is about $2,000.
  5. Environmental Phase 1:
    Not always, but sometimes lenders will require a specialist to visit the property and determine if there is potential for current contamination or evidence of previous contamination. Signs to look out for could be old underground tank spouts or being next door to a former/current gas station or laundro-mat. The Phase 1 typically costs $2,500.
  6. Mortgage Broker Fee’s:
    While going directly to a major A-Lender bank to get financing is easy enough; sometimes Mortgage Brokers have far greater access to funds than a single bank does. I’ll have a full breakdown on finding the RIGHT Mortgage Broker in another article. Typically they charge a “Lending Fee” or “Broker Fee” in order to help you find the right mortgage for you and your property. This can cost anywhere from 0.5% to substantially more depending on how complex the trade is. For this example; we will say 0.5% of the mortgage amount. The cost for this is: $6,500.
  7. Miscellaneous:
    There are so many other small things that might come up and can really impact your plans. I always recommend buyers to have at minimum 1.0% of the purchase price in liquid, actionable cash for those random events.

At first we have the 35% down payment of: $700,000.

Now let’s recap the 6 other expenses you can/most likely will encounter:


  • Building Inspection: $5,000+ Tax (13%) = $5,650.00
  • Appraisal: $2,000+ Tax (13%) = $2,260.00
  • Survey: $2,000+ Tax (13%) = $2,260.00
  • Legal/Lawyer: $2,000+ Tax (13%) = $2,260.00
  • Environmental Phase 1: $2,500+ Tax (13%) = $2,825.00
  • Mortgage Broker Fees: $6,500+ Tax (13%) = $7,345.00
  • Total: $22,600.00 PLUS THE 1% of the purchase price for miscellaneous! 

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