Before you start shopping for a home, there’s one number every buyer needs to know: closing costs typically add about 2% to your purchase price.
Most buyers are great at saving their deposit, but many discover just days before closing that land transfer tax, legal fees, and other adjustments add thousands more than expected.
At Community Real Estate Group – London & Area Living, we make it simple. Every search starts with one calculation: purchase price × 0.02. For a $600,000 home, that means budgeting about $12,000, which covers:
- $8,475 for Ontario land transfer tax
- $1,600 in legal fees and disbursements
- $800 for prepaid taxes or condo fee adjustments
- and a $500 buffer for lender-related costs
We build those numbers right into your budget and adjust them if your price or closing date changes — so there’s zero guesswork when your lawyer asks for certified funds.
It also strengthens your negotiating position — because you know your true bottom line before you even draft the offer.
Follow the 2% rule, and your first month in your new home funds furniture — not surprise invoices.