Closing costs when you buy a home in Ontario
On top of your down payment, budget roughly 1.5% to 4% of the price for closing costs. Most of it is land transfer tax, which is far higher in Toronto because you pay it twice.
By Mehran Salehian, Sales Representative · Reviewed October 2026
The quick estimate
| Price | Outside Toronto | In Toronto | In Toronto, first-time buyer |
|---|---|---|---|
| $600,000 | $11,975 | $20,566 | $12,091 |
| $900,000 | $17,975 | $32,566 | $24,091 |
| $1,200,000 | $23,975 | $44,566 | $36,091 |
| $1,800,000 | $35,975 | $68,566 | $60,091 |
Land transfer tax plus about $3,500 for legal fees, title insurance, inspection and small items. Your own costs will differ; the sections below explain each one.
Land transfer tax (the big one)
Ontario charges land transfer tax on every purchase. If the home is inside the City of Toronto, the city charges its own municipal land transfer tax as well, at about the same rates, so Toronto buyers pay roughly double. First-time buyers get up to $4,000 back from Ontario and up to $4,475 from Toronto. It is paid on closing day through your lawyer and cannot be added to your mortgage.
Calculate your land transfer tax · How land transfer tax works
Legal fees and disbursements: about $1,500–$2,500
A real estate lawyer handles the title search, the mortgage documents, paying the tax and registering the home in your name. Quotes usually include fees plus "disbursements" (search and registration costs) plus HST. Ask for an all-in number.
Title insurance: about $300–$600
Most lenders require it. It protects you and the lender against problems with the title, such as unpaid work orders, fraud or survey issues. Your lawyer arranges it.
Home inspection: about $400–$700
Paid before you firm up the deal, or before you make an offer in a competitive market. Condo inspections are usually cheaper than houses.
Adjustments on closing
If the seller prepaid property taxes or condo fees past your closing date, you pay them back for the days you own the home. Your lawyer's statement of adjustments lists these; they can be a few hundred to a few thousand dollars.
Mortgage-related costs
- PST on mortgage default insurance. If you put down less than 20%, the insurance premium is added to your mortgage, but the 8% Ontario sales tax on that premium is not; it is due in cash on closing.
- Appraisal: often covered by the lender, sometimes $300–$500.
New construction and assignments
New homes can carry extra closing charges: development charges, utility hook-ups, Tarion enrolment and HST adjustments. Read the "Schedule" of your agreement carefully, and see rebates on new homes.
Moving in
Movers, utility hook-ups, home insurance (required by your lender from day one), and for condos the move-in deposit for the elevator. Small items, but they add up to a few thousand dollars.
When each closing cost comes due
Closing costs don't all land on closing day. Here is the usual order on a resale purchase in Ontario, so you know when you need cash.
- Before you make an offer. Get a mortgage pre-approval and a written quote from a real estate lawyer. Ask the lawyer for an all-in number that includes disbursements and HST. Set aside your closing cash separately from your down payment.
- When the offer is accepted. Your deposit is due on the timing set out in the agreement. It isn't an extra cost, because it counts toward your down payment, but it has to be ready within days, not weeks.
- During the conditional period. You pay for the home inspection here. For a resale condo, your lawyer orders the status certificate. The building can charge up to $100 for it, taxes included, and must offer delivery within 10 days at that price (Condominium Authority of Ontario).
- Once the deal is firm. Arrange home insurance, which your lender will want proof of before closing. If your lender asks for an appraisal, it happens now.
- About a week or two before closing. Your lawyer prepares the statement of adjustments, and you sign the mortgage and transfer documents. This is when you find out the exact amount of cash to bring.
- Closing day. Your lawyer pays the land transfer tax, registers the transfer and releases the funds. If you have an insured mortgage, the provincial sales tax on the premium is collected now too.
- After closing. If your lawyer didn't claim your first-time buyer land transfer tax rebates on registration, you can still apply. Ontario and Toronto each allow 18 months after registration (Ontario; City of Toronto).
A worked example
Say a first-time buyer purchases a $900,000 home in Toronto with 10% down ($90,000) and a 30-year insured mortgage.
- Land transfer tax. Ontario's tax is $14,475 and Toronto's is also $14,475. After the first-time buyer rebates of $4,000 and $4,475, the buyer pays $20,475, plus Toronto's small administration fee. A repeat buyer would pay $28,950.
- Mortgage default insurance. The loan is $810,000, or 90% of the price, so CMHC's premium is 3.10%. An amortization over 25 years adds 0.20%, for 3.30% in total, which comes to $26,730 (CMHC). The premium is added to the mortgage.
- Sales tax on the premium. Ontario's 8% retail sales tax on insurance premiums (Ontario Ministry of Finance) comes to about $2,140. CMHC notes that this tax can't be added to the loan, so it is paid in cash on closing.
- Lawyer, title insurance, inspection and adjustments are on top, using the ranges above.
In this example, the buyer needs about $22,600 in cash on closing for land transfer tax and sales tax alone, before legal fees and the rest, and before the $90,000 down payment. Use the land transfer tax calculator for your own price.
Common mistakes
- Assuming everything can go on the mortgage. Land transfer tax can't, and neither can the sales tax on mortgage insurance. Plan for both in cash.
- Forgetting that Scarborough, Etobicoke, North York, York and East York are in Toronto. Homes there pay the Toronto land transfer tax too, even if the address feels suburban.
- Assuming you're a first-time buyer. The land transfer tax rebates require that you have never owned a home anywhere in the world. Your spouse must also not have owned one while you were together. That is stricter than the four-year test used for the FHSA and the Home Buyers' Plan.
- Expecting the Toronto rebate on any property type. Toronto's first-time buyer rebate applies to new and resale homes, but not to commercial, industrial or multi-residential properties (City of Toronto).
- Leaving no cushion. Adjustments for prepaid property tax or condo fees aren't known until close to closing. Keep a buffer of a few thousand dollars.
Frequently asked questions
Do I get the first-time buyer rebates at closing or later?
Usually at closing: your lawyer claims them when the transfer is registered. If that doesn't happen, you can apply within 18 months. For the Toronto rebate, you'll need proof that you moved in within nine months, such as a phone or cable bill or a driver's licence. The City doesn't accept utility or property tax bills as proof.
What if my partner qualifies as a first-time buyer and I don't?
Ontario reduces the refund in proportion to the share of the home owned by the buyers who qualify (Ontario). If you each own half, expect roughly half the rebate. Ask your lawyer to confirm the Toronto amount.
Do buyers who aren't citizens or permanent residents pay more?
Yes. Ontario's Non-Resident Speculation Tax is 25%, anywhere in the province, on homes with one to six units (Ontario). Since January 1, 2025, Toronto has also charged its own 10% Municipal Non-Resident Speculation Tax on certain purchases (City of Toronto). Get legal advice before you sign.
Are closing costs different on a new build?
Often, yes. Read the adjustments schedule in your agreement, and ask the builder how any GST/HST new housing rebate is credited on closing.
What's changed in 2025–2026
- Toronto's speculation tax for non-residents took effect January 1, 2025.
- Higher Toronto land transfer tax rates above $3 million apply to homes closing on or after April 1, 2026. See the land transfer tax guide.
- Larger HST relief on new homes in Ontario. Bill 114 received Royal Assent on May 12, 2026 (Legislative Assembly of Ontario). The rebates are for agreements signed from April 1, 2026 to March 31, 2027, as announced (Ontario). The details are in the first-time buyer guide.
All figures are as of October 2026.
This guide is general information, not legal, tax or financial advice. Rules and rates change; confirm the details with your lawyer, lender or accountant.