How Much Do You Really Need to Save to Buy a Condo?

At minimum, a homebuyer needs to save $45,000 to purchase a median-priced condo in the Greater Toronto Area. Here’s a breakdown of the costs.

By Josh Sherman | 3 minute read

Many Canadians are confronted with unexpected costs when purchasing a home.

Many Canadian homebuyers continue to get caught off guard by costs associated with purchasing property. 

Recently released results from the 2026 CMHC Mortgage Consumer Survey suggest nearly one-in-three (32%) homebuyers faced unexpected costs during the homebuying process in the past 18 months.

To help homebuyers get ahead of any unpleasant surprises, Wahi recently connected with Toronto REALTOR®s to outline what first-timers should expect to save up for before stepping onto the property ladder.

Unexpected costs were such a prevalent issue for Toronto Realtor Mark Savel of TorontoLivings.com that he drafted a detailed breakdown for all of his clients.

Wahi has adapted the analysis for first-time homebuyers by assuming the purchase price is the median sale price of a condo in the Greater Toronto Area as of April ($575,000) and the minimum downpayment of 5.7%. (The minimum is a notch above 5% because Canadian mortgage rules dictate that buyers must put forward 5% on the first $500,000, and an additional 10% towards the amount above that.)

In total, a 5.7% downpayment on a $575,000 condo works out to required savings of $32,775.

For most homebuyers, though, the downpayment amount comes as no surprise — even for first-timers. “I find consumers are more and more educated and have more and more tools at their fingertips to help them through this process,” says Grant Allardyce, team lead at Allardyce Homes. 

Where things get less clear are the additional costs, which can snowball. “These all tend to add up at a time where people are stretched thin, especially if they’re getting into the market for the first time,” adds Allardyce. 

The Main Unexpected Costs Homebuyers Need to Budget for

Allardyce and Savel say there are several main costs that homebuyers need to budget for before dipping their toes in the property market. These costs are often overlooked by homebuyers but together represent a significant amount of money.

Land Transfer Tax: “I think the biggest one is the land transfer tax,” says Allardyce. Homebuyers within the City of Toronto are responsible for paying both the Ontario Land Transfer Tax and the Toronto Land Transfer Tax. According to Savel, on a $575,000 purchase, a homebuyer is responsible for $15,950. “The good news is since you’re a first-time purchaser, the tax is reduced to $7,475 but must still be paid at closing,” he writes in an email detailing expenses.

However, Allardyce cautions, the rebate only applies if all of the homebuyers involved in the transaction are first-timers. “If it’s a couple and one has purchased and one hasn’t, the land transfer tax applies to both,” he explains. 

Moving: Among homebuyers who say they were confronted with unexpected costs during the homebuying process, moving expenses were the most common, as per the CMHC’s recent mortgage-consumer survey.

Moving costs in Toronto range from $750 to upwards of $1,200 for a one-bedroom condo to $1,300 to $1,800 and up, according to CARGO CABBIE, one of the GTA’s top moving companies.

Legal fees: Savel recommends setting at least $2,500 aside for lawyer fees. “A real estate lawyer is needed to close all property transactions in Ontario,” he says, noting that these fees do vary. Lawyer or notary fees are the second most common unexpected expense for homebuyers after moving costs, according to the CMHC survey.

Adjustments: “Nobody thinks about the adjustment side of it,” says Savel. “It’s not a major expense, but if you buy early in the year and somebody has prepaid their property tax throughout the year, you have to credit them back the difference, and that is almost never talked about,” he continues.

For example, if the current owner’s property taxes for the year are $1,200, which they’ve pre-paid, and you take possession on June 1, you’re responsible for $600.

How It All Adds up 

Added together, Savel estimates a buyer with the minimum downpayment for a median-priced condo in the GTA will need at least $45,000 in the bank. The amount covers the deposit, downpayment, land-transfer taxes, and lawyer fees, as well as taxes on CMHC mortgage insurance. Moving costs and adjustments vary and are extra. 

Timing is another overlooked part of the equation. A homebuyer may have saved up enough for a downpayment and other costs, but they might not realize that the funds aren’t immediately available to them. “A lot of people will have it in investments that will take a week or two to get out of,” Savel explains.

Then there are carrying costs.

Assuming the 5.7% downpayment on the $575,000 condo and a five-year fixed rate of 4.09% with a 25-year amortization, monthly mortgage payments work out to $2,994. Maintenance fees vary, but for a condo in this price range, homebuyers should anticipate an additional $650 per month.

The golden rule has historically been spending no more than a third of your take-home pay on housing.

However, given the affordability challenges in Toronto and other major Canadian housing markets, Savel suggests it’s OK to spend a bit more. ​​“I think 40% gives you a nice cushion in terms of what to budget and expense for,” he says.

Savel recommends not only budgeting early on for all the costs related to homebuying but also for the first year of ownership. “Planning pre-purchase what your monthly expenses will look like for the first year goes a long way in ensuring your timing is right to be in the market,” he says.