Buying a home is one of life’s biggest milestones, whether you’re a first-time buyer or making your next move. While the excitement of purchasing never fades, the experience itself can feel either empowering or overwhelming depending on how well you’re prepared.

One of the most common surprises for buyers in Hamilton, Burlington, Dundas, Ancaster, Stoney Creek, and nearby communities is how much they need to budget beyond the purchase price. These additional expenses – known as closing costs, play a critical role in affordability and long-term financial comfort.

In this guide, we’ll break down the true cost of buying a home in the Hamilton-area market, explain how it compares to Toronto, and share how smart planning can help you buy with confidence.

Planning to buy your first home? Check out: Ultimate Guide for First Time Home-Buyers in Hamilton, Dundas & Surrounding Areas

When $1 Million Goes Further in Hamilton Than Toronto

For many buyers relocating from Toronto, the difference isn’t just the purchase price – it’s the overall cost of ownership.

In Toronto, buyers must pay both provincial and municipal land transfer taxes, which can add tens of thousands of dollars to closing costs. In Hamilton, Burlington, Dundas, Ancaster,  and across the rest of Ontario, buyers pay provincial land transfer tax only.

That single difference often results in:

• Lower upfront costs
• More flexibility in your budget
• Extra funds for renovations, furnishings, or savings

As a general guideline:

• Toronto buyers should budget 5-6% of the purchase price for closing costs
• Hamilton-area buyers typically budget 3-4%

This makes a meaningful difference, especially for families and move-up buyers seeking more space and long-term value.

Land Transfer Tax in Hamilton vs. Toronto

Land transfer tax is usually the largest closing cost buyers face.

In the Hamilton, Burlington, Dundas & Ancaster area:

Buyers pay Ontario’s provincial land transfer tax only.

For example:

• Purchase price: $800,000
• Approximate land transfer tax: $12,475

In Toronto:

That same purchase would require both provincial and municipal land transfer taxes, pushing the total to nearly $25,000.

For buyers moving west from Toronto, these savings alone can be a game-changer.

First-time buyers may qualify for provincial land transfer tax rebates. We help our clients understand what rebates apply and how to maximize them.

Check out our Buyers’ Calculator! Ensure you’re prepared before entering the market by determining your potential costs first. Use our simplified calculator tool here to plan ahead. 

Legal Fees When Buying a Home in Hamilton

Before closing, a real estate lawyer will:

• Conduct a title search
• Arrange title insurance
• Review your Agreement of Purchase and Sale and mortgage documents
• Register the property in your name

Legal fees in the Hamilton and Burlington area typically range from $2,000 to $4,000, depending on the complexity of the transaction. Always confirm that disbursements are included in the quote.

Home Inspection & Appraisal Costs

A professional home inspection is one of the most valuable tools available to buyers – especially in competitive markets.

• Home inspection: $400 – $700
• Appraisal: $300 – $500

Most lenders require an appraisal, and some will cover the cost, particularly for established clients. We always recommend asking.

Mortgage Insurance & Down Payment Requirements

A 20% down payment is not always required when buying a home in Hamilton or the surrounding areas.

• Homes priced under $1.5 million may qualify with as little as 5% down
• High-ratio mortgages require mortgage insurance, which protects the lender and is usually added to your mortgage balance rather than paid upfront

Understanding how this affects monthly payments and long-term affordability is essential – and something we walk through carefully with our buyers.

Additional Costs to Budget For

Beyond the major items, buyers should also plan for:

• Utility hookups
• Property tax adjustments
• Development charges on new builds
• Moving expenses and initial setup costs

These smaller items can add up quickly, which is why a well-cushioned budget is key.

Why More Buyers Are Choosing Hamilton and its Surrounding Communities

Hamilton, Burlington, Dundas, Ancaster, and Stoney Creek continue to attract buyers looking for:

• More space for their budget
• Lower closing costs than Toronto
• Strong resale value and long-term appreciation
• Access to GO Transit, highways, and major employment hubs
• Established neighbourhoods with community appeal

For many buyers, the move west isn’t about compromise – it’s about buying smarter.

Expert Buyer Representation at No Direct Cost

One of the biggest advantages buyers often overlook?
Your REALTOR® is typically paid by the seller.

That means you can benefit from expert negotiation, market insight, and strategic guidance – without paying out of pocket.

At The O’Reilly Group, we specialize in helping buyers navigate the Hamilton-area real estate market with confidence. From identifying the right neighbourhood to negotiating the best possible terms, our local expertise helps protect your investment and your peace of mind.

Are you ready to start the search for your home in Hamilton, Ancaster, or Dundas? Our real estate team is here to guide you from start to finish. Reach out to hello@theoreillygroup.ca or call 905-512-5323 to learn how we can help.

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Whether you’re selling or buying the O’Reilly Group is dedicated to elevating your real estate experience.

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