Closing Costs in Richmond Hill and Markham: The Complete Guide for Buyers and Sellers in 2026

The purchase price is not the total cost of buying a home. And the sale price is not what you walk away with when selling. Closing costs are the gap between the number on the agreement of purchase and sale and the actual money that moves. In Richmond Hill and Markham, buyer closing costs typically range from 1.5% to 4% of the purchase price. Seller closing costs run 4% to 6%. Most people underestimate both. This guide breaks down every cost on both sides with real calculations at York Region price points so you can budget accurately before you commit.

Table of Contents

• Buyer Closing Costs: Everything You Pay
• Ontario Land Transfer Tax: The Biggest Cost
• First-Time Buyer Savings
• Total Buyer Closing Costs at Four Price Points
• Seller Closing Costs: What You Actually Walk Away With
• Total Seller Costs at Four Price Points
• York Region vs Toronto: The LTT Advantage
• Hidden Costs Most People Forget
• Frequently Asked Questions

Buyer Closing Costs: Everything You Pay

Beyond your down payment, expect the following costs on closing day and in the weeks surrounding it.

Ontario Land Transfer Tax

This is your single largest closing cost. Ontario uses a tiered marginal system: 0.5% on the first $55,000, 1.0% on $55,001 to $250,000, 1.5% on $250,001 to $400,000, 2.0% on $400,001 to $2,000,000 and 2.5% on amounts above $2,000,000. On a $1.5M home in Richmond Hill, the LTT is $28,475. On a $550,000 condo, it is $6,475. First-time buyers receive a rebate of up to $4,000.

Legal Fees

Your real estate lawyer handles the title search, mortgage registration, land transfer tax remittance, statement of adjustments and closing documentation. Typical cost: $1,500 to $2,500 + HST for a standard residential purchase. Complex transactions (new builds, assignments, multiple mortgages) may cost more.

Title Insurance

Most lenders require title insurance, which protects against title defects, fraud, survey issues and encroachments. Cost: $300 to $600 depending on the purchase price. Title insurance replaces the need for an up-to-date survey in most cases, saving you the $1,500+ survey cost.

Home Inspection

$400 to $700 for a standard inspection. Additional specialist inspections (structural, electrical, sewer camera) cost $150 to $1,500 each. This is paid before closing during the conditional period.

Appraisal

Your lender may require an appraisal to confirm the property value supports the mortgage amount. Cost: $300 to $500. Some lenders cover this cost. Others pass it to the buyer. Ask your mortgage broker.

Property Tax and Utility Adjustments

On closing day, the seller has prepaid property taxes and utilities (water, hydro) up to a certain date. You reimburse the seller for the portion of prepaid costs that covers the period after closing. This is calculated on the statement of adjustments prepared by your lawyer. Typical adjustment: $1,000 to $4,000 depending on closing date and property tax amount.

CMHC Insurance (If Applicable)

If your down payment is less than 20% (available on properties under $999,999), you are required to purchase mortgage default insurance (CMHC, Sagen or Canada Guaranty). The premium ranges from 2.8% to 4.0% of the mortgage amount and is typically added to the mortgage balance. On a $500,000 purchase with 5% down ($25,000), the insurance premium is approximately $19,000 added to your mortgage.

Estoppel Certificate (Condos Only)

If you are purchasing a condo (apartment or townhome), your lawyer will order a status certificate from the condo corporation. Cost: $100 per unit (set by Ontario regulation). This confirms the condo's financial health, reserve fund status, pending litigation and any outstanding assessments.

Moving Costs

Professional movers for a 3 to 4-bedroom home in York Region: $1,500 to $4,000 depending on distance and volume. Budget separately for packing supplies, storage (if needed) and any overlap period between homes.

Ontario Land Transfer Tax: The Biggest Cost

The LTT calculation uses marginal rates, similar to income tax brackets. On a $1,500,000 home: 0.5% on $55,000 ($275) + 1.0% on $195,000 ($1,950) + 1.5% on $150,000 ($2,250) + 2.0% on $1,100,000 ($22,000) = $26,475. Note: Ontario applies an additional 0.5% on amounts above $400,000 for properties containing at least one and not more than two single-family residences, bringing the effective rate above $400,000 to 2.0%. The total on $1.5M is $28,475.

First-Time Buyer Savings

If you have never owned property anywhere in the world (and your spouse/partner has not either), you qualify for Ontario's first-time home buyer LTT rebate of up to $4,000. This covers the full LTT on homes up to $368,000 and reduces it on all homes above that price.

Combined with other first-time buyer programs, the total potential savings are significant. The FHSA (First Home Savings Account) allows tax-deductible contributions up to $8,000/year with a $40,000 lifetime limit, and withdrawals for a qualifying home purchase are tax-free. The RRSP Home Buyers' Plan allows withdrawing up to $60,000 ($120,000 for a couple) tax-free for a first home purchase. The Ontario LTT rebate saves up to $4,000. Together, these programs can reduce your upfront costs by $15,000 to $20,000+ depending on your contributions.

Total Buyer Closing Costs at Four Price Points

These are estimates. Your lawyer's statement of adjustments will provide exact figures. But as a planning tool, budgeting 2-3% of the purchase price for closing costs on top of your down payment will keep you in the right range for most Richmond Hill and Markham purchases.

Seller Closing Costs: What You Actually Walk Away With

Sellers often focus on the sale price and forget the costs that come off the top. Here is what you pay.

Real Estate Commission

This is the largest seller cost. Commission is negotiable and varies, but the total commission (split between listing and buyer agent) typically ranges from 3.5% to 5% + HST of the sale price. On a $1.5M sale, commission at 4.5% + HST is approximately $76,275. Commission structures vary. Discuss the exact terms with your listing agent before signing.

Legal Fees

Seller legal fees are typically lower than buyer legal fees because there is no mortgage registration or title insurance. Cost: $1,000 to $1,800 + HST for a standard residential sale.

Mortgage Discharge and Penalties

If you have a mortgage, your lender will charge a discharge fee ($200 to $400) to remove the mortgage from title. If you are breaking a fixed-rate mortgage before its term ends, the prepayment penalty can be significant (typically 3 months' interest or the interest rate differential, whichever is higher). On a $800,000 mortgage at 4.5%, three months' interest is approximately $9,000. The IRD penalty can be higher. Check your mortgage contract or ask your lender for the exact penalty before listing.

Pre-Sale Preparation Costs

Staging ($3,000 to $8,000), pre-sale renovations ($5,000 to $50,000+ depending on scope), professional photography ($500 to $1,500), cleaning ($500 to $2,000). These are optional but in a buyer's market, they directly affect how fast your home sells and for how much. At Kirby Chan & Co., staging and professional photography are part of the listing strategy.

Moving Costs

Same as buyer side: $1,500 to $4,000 for professional movers in York Region.

Total Seller Costs at Four Price Points

These estimates do not include mortgage prepayment penalties, which can add $5,000 to $25,000+ depending on your mortgage terms. Always check your penalty before deciding to sell.

York Region vs Toronto: The LTT Advantage

One of the biggest financial advantages of buying in Richmond Hill or Markham versus Toronto is the land transfer tax. Toronto charges a Municipal Land Transfer Tax (MLTT) on top of the provincial LTT. York Region does not. The boundary is Steeles Avenue. Buy south of Steeles and you pay double LTT. Buy north of Steeles and you pay only provincial.

At the $1.5M price point, buying in Richmond Hill or Markham instead of Toronto saves you approximately $28,475 in land transfer tax alone. That is enough to cover a kitchen renovation, a year of mortgage payments or a significant portion of your closing costs. This savings is permanent and applies every time you purchase in York Region versus Toronto.

Hidden Costs Most People Forget

Immediate repairs and upgrades. The home inspection may not reveal everything. Budget $5,000 to $15,000 for unexpected repairs in your first year (hot water tank replacement, minor plumbing, electrical updates, weather stripping, locks changed).

Utility setup fees and deposits. Enbridge (gas), Alectra (electricity) and York Region (water) may require deposits or connection fees for new accounts. Budget $500 to $1,000.

Home insurance. Your lender requires home insurance before closing. Annual premiums in York Region range from $1,200 to $3,000+ depending on the home's age, size, location and claims history. Homes with aluminum wiring, older roofs or oil tanks may face higher premiums or coverage restrictions.

Window coverings. An often-overlooked cost, especially in new-build homes that come without blinds. Full window coverings for a 4-bedroom detached: $3,000 to $8,000.

Lawn equipment and tools. If you are moving from a condo to a freehold home, you need a lawn mower, snow shovel, garden tools and potentially a snow blower. Budget $500 to $2,000 depending on lot size.

Note: All figures are estimates based on 2026 Ontario rates and York Region conditions. Land transfer tax rates are set by the province and may change. Commission rates are negotiable. Legal fees vary by firm. Mortgage penalties vary by lender and contract terms. This guide is for general information purposes only. For exact figures specific to your transaction, consult your real estate lawyer, mortgage broker and licensed real estate professional.