Closing Costs When Buying a Home in Ontario: A Comprehensive List
Closing Costs When Buying a Home in Ontario: A Comprehensive List
Most home buyers in Ontario budget carefully for the down payment, then get caught off guard by closing costs. Closing costs are the fees, taxes and expenses you pay on top of the purchase price to complete a real estate transaction, and in Ontario they can add up to tens of thousands of dollars. This guide covers every closing cost when buying a home in Ontario, what each one typically costs, and how first-time home buyers can lower the total.
How Much Are Closing Costs in Ontario?
A common rule of thumb is to budget 1.5% to 4% of the purchase price for closing costs in Ontario. Where you land in that range depends on three things: whether you are buying in Toronto (which charges a second land transfer tax), whether you are a first-time home buyer (which unlocks rebates), and whether you are buying a resale home or a new build.
On an $800,000 home outside Toronto, closing costs often land between $15,000 and $20,000. Inside Toronto, the same purchase can cost $25,000 to $30,000 or more. Lenders generally want proof that you have at least 1.5% of the purchase price set aside for closing costs before they approve your mortgage, so plan for this money early.
1. Ontario Land Transfer Tax
The Ontario land transfer tax is usually the single largest closing cost when buying a home in Ontario. It is a provincial tax paid when the property's ownership is registered in your name, and it is calculated on a sliding scale based on the purchase price.
Ontario land transfer tax rates for a home with one or two single-family residences:
Up to $55,000: 0.5%
$55,000 to $250,000: 1.0%
$250,000 to $400,000: 1.5%
$400,000 to $2,000,000: 2.0%
Over $2,000,000: 2.5%
Example: On an $800,000 home, the Ontario land transfer tax works out to $12,475.
First-Time Home Buyer Land Transfer Tax Refund in Ontario
First-time home buyers in Ontario can get a refund of up to $4,000 on the provincial land transfer tax. That means no land transfer tax is payable on the first $368,000 of the purchase price. To qualify, you must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and move into the home as your principal residence within nine months. If you have a spouse, they cannot have owned a home while married to you. Your real estate lawyer usually claims the refund at closing, or you can apply within 18 months of registration.
2. Toronto Municipal Land Transfer Tax
If you are buying a home in the City of Toronto, you pay a second land transfer tax on top of the Ontario land transfer tax. The Toronto municipal land transfer tax (MLTT) uses the same rates as the provincial tax up to $3 million, with higher luxury rates above that.
On an $800,000 Toronto home, that is another $12,475, bringing the total land transfer tax to $24,950.
Toronto First-Time Buyer Land Transfer Tax Rebate
First-time home buyers in Toronto can claim a municipal rebate of up to $4,475. Combined with the Ontario refund, first-time buyers in Toronto can save up to $8,475 in land transfer tax. On our $800,000 example, that drops the total from $24,950 to $16,475.
No other Ontario municipality currently charges its own land transfer tax, so buyers in Mississauga, Brampton, Vaughan, Ottawa and elsewhere pay only the provincial tax.
3. Real Estate Lawyer Fees and Disbursements
Every home purchase in Ontario needs a real estate lawyer to review the agreement, search the title, register the property, handle the mortgage documents and transfer the funds. Real estate lawyer fees in Ontario typically run $1,500 to $2,500 plus HST for a standard resale purchase.
Disbursements are the out-of-pocket costs your lawyer pays for you, such as title searches, registration fees, courier charges and software fees. Expect $500 to $1,000 in disbursements. Always ask for an all-in quote that includes legal fees, disbursements and HST, so you can compare real estate lawyers fairly.
4. Title Insurance
Title insurance protects you and your lender against problems with the property's title, such as fraud, liens, survey errors or zoning issues. Most lenders in Ontario require it. It is a one-time premium paid at closing, usually $250 to $500 depending on the purchase price.
5. Home Inspection Costs
A home inspection is not mandatory, but it is one of the smartest closing costs when buying a home in Ontario. A professional home inspector checks the roof, foundation, plumbing, electrical, heating and more. A standard home inspection in Ontario costs $400 to $800, with higher prices for large or older homes.
If you are buying a rural property or a cottage, budget extra for a well water test and a septic inspection, which can add $300 to $1,000 or more.
6. Home Appraisal Fee
Your mortgage lender may require an appraisal to confirm the home is worth what you are paying. Appraisal fees in Ontario usually range from $300 to $600. Many lenders cover the appraisal on insured mortgages, so ask your mortgage broker whether you will pay this fee.
7. Mortgage Default Insurance and PST
If your down payment is less than 20%, your mortgage must be insured through CMHC, Sagen or Canada Guaranty. The mortgage default insurance premium is usually added to your mortgage, so you do not pay it upfront.
However, Ontario charges 8% provincial sales tax (PST) on the mortgage insurance premium, and that PST must be paid in cash at closing. It cannot be added to your mortgage. For example, a 4% premium on a $760,000 mortgage is $30,400, and the PST on that premium is $2,432, due on closing day. This is one of the most commonly missed closing costs in Ontario.
8. Property Tax Adjustments
If the seller has already prepaid property taxes for the year, you reimburse them for the days you will own the home. This is called a property tax adjustment, and your real estate lawyer calculates it on the statement of adjustments. Depending on the home and the closing date, this can be a few hundred to a few thousand dollars.
Your lender may also collect property taxes with your mortgage payments, and some lenders ask for an upfront amount to start the property tax account.
9. Utility and Fuel Adjustments
Similar to property taxes, you may owe the seller for prepaid utilities or fuel. Rural homes heated by oil or propane often have a fuel tank adjustment, where you pay for the fuel left in the tank. Condo buyers may owe an adjustment for prepaid condo maintenance fees.
10. Condo Status Certificate
If you are buying a condo in Ontario, your lawyer should review the condo's status certificate, which shows the building's finances, reserve fund, legal issues and any upcoming special assessments. In Ontario, condo corporations can charge up to $100 for a status certificate. Your lawyer may charge an extra fee to review it.
11. Home Insurance
Your lender requires proof of home insurance before closing. For a condo, you need condo unit insurance. For a freehold home, you need full homeowner's insurance. Many insurers require the first month's premium or the full annual premium upfront.
12. Interest Adjustment
If your closing date does not line up with your mortgage payment schedule, your lender may charge an interest adjustment for the days between closing and the start of your regular payment cycle. Ask your mortgage broker how your lender handles this so it does not come as a surprise.
13. Survey Costs
Some lenders and real estate lawyers want an up-to-date property survey, especially for rural properties, waterfront homes and older houses. Title insurance often replaces the need for a new survey, but if one is required, a property survey in Ontario can cost $1,000 to $2,500 or more.
14. Closing Costs for New Construction Homes in Ontario
Buying a new build or pre-construction home in Ontario comes with extra closing costs that resale buyers do not pay:
HST on new homes: New homes are subject to 13% HST. Builders often include it in the price and claim the existing rebates on your behalf, but check your agreement carefully.
New home HST rebates: First-time buyers of newly built homes may qualify for federal and Ontario rebates of the HST. In 2026, Ontario also announced a larger new home HST rebate for buyers who sign with a builder between April 1, 2026 and March 31, 2027. Eligibility depends on dates and price, so confirm with your lawyer.
Development charges and levies: Builders may pass on municipal development charges, education levies and utility connection fees on closing. These can be thousands of dollars if your agreement does not cap them.
Tarion warranty enrolment fee: This fee for Ontario's new home warranty program is sometimes charged back to buyers.
Occupancy fees: Pre-construction condo buyers may pay monthly occupancy fees while waiting for the building to register.
Always have a real estate lawyer review a new home purchase agreement before you sign.
15. Non-Resident Speculation Tax
Foreign nationals and non-residents buying residential property in Ontario pay a 25% Non-Resident Speculation Tax on top of the regular land transfer tax. Some exemptions apply, such as certain refugees, permanent resident nominees and spouses of Canadian citizens. Federal restrictions on foreign buyers may also apply, so get legal advice before making an offer.
16. Moving Costs and Move-In Expenses
Moving costs are not technically closing costs, but they hit at the same time. Professional movers in Ontario usually charge $1,000 to $5,000 depending on distance and the size of your home. Also budget for utility hookups, changing the locks, condo move-in fees, basic tools, window coverings and any immediate repairs.
Sample Closing Cost Breakdown for an Ontario Home Purchase
Here is an example of closing costs when buying an $800,000 resale home in Ontario with 5% down, for a buyer who is not a first-time home buyer.
Buying outside Toronto:
Ontario land transfer tax: $12,475
Toronto municipal land transfer tax: $0
Real estate lawyer fees and disbursements: $2,800
Title insurance: $350
Home inspection: $600
PST on mortgage insurance: $2,432
Adjustments and insurance (estimate): $1,500
Estimated total: $20,157
Buying in Toronto:
Ontario land transfer tax: $12,475
Toronto municipal land transfer tax: $12,475
Real estate lawyer fees and disbursements: $2,800
Title insurance: $350
Home inspection: $600
PST on mortgage insurance: $2,432
Adjustments and insurance (estimate): $1,500
Estimated total: $32,632
A first-time home buyer could save $4,000 outside Toronto and up to $8,475 in Toronto with the land transfer tax rebates. Moving costs are extra.
How to Lower Your Closing Costs in Ontario
Claim every first-time home buyer rebate. Tell your lawyer early so the land transfer tax refunds are applied at closing.
Compare real estate lawyer quotes. Ask for all-in pricing, including disbursements and HST.
Put down 20% if you can. You avoid mortgage default insurance and the PST that comes with it.
Use your FHSA or RRSP. A First Home Savings Account and the Home Buyers' Plan can help cover your down payment, freeing up cash for closing costs.
Negotiate with new home builders. Ask for development charges and other closing fees to be capped in your agreement.
Work with an experienced real estate agent and mortgage broker. A good agent and broker will walk you through closing costs before you make an offer, not after.
Find a Real Estate Agent in Ontario Who Explains Closing Costs Upfront
The best way to avoid surprise closing costs is to work with a real estate agent who knows your local Ontario market and explains the full cost of buying before you start house hunting. Ontario Agent Search matches home buyers with local real estate agents across Ontario, for free. Tell us about your home search below and a local agent will be in touch.
Ontario Agent Search is a referral service. We are not real estate agents, brokers or a real estate brokerage, and we are not registered with the Real Estate Council of Ontario (RECO). This article is general information, not real estate, legal, tax or financial advice. Tax rates, rebates and fees change, so confirm current amounts with a real estate lawyer or mortgage professional before you buy. We connect people with independent real estate agents registered in Ontario, and we may receive a referral fee from an agent you choose to work with. Always confirm an agent's registration at reco.on.ca before working with them.
