·· Real Estate · Ontario
Ontario Closing Costs: The Full Breakdown
Most buyers budget for the down payment but get blindsided by closing costs. Here's every line item — and the rebates that can reduce them.
Updated June 2026 · 8 min read · Source: Ontario Ministry of Finance
Quick Estimate: $700,000 Home in Ontario
Ontario Land Transfer Tax: The Largest Cost
Ontario Land Transfer Tax (LTT) is calculated on brackets — not a flat percentage. You pay a percentage on each bracket, similar to income tax.
| Purchase Price Portion | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,001 – $250,000 | 1.0% |
| $250,001 – $400,000 | 1.5% |
| $400,001 – $2,000,000 | 2.0% |
| Over $2,000,000 (residential) | 2.5% |
Costs First-Time Buyers Most Often Miss
Frequently Asked Questions
Typically 1.5%–4% of purchase price. On a $700,000 home, budget $13,000–$28,000 depending on whether you're in Toronto and whether CMHC insurance applies.
Up to $4,000 provincial rebate on Ontario LTT (homes up to $368,333 fully rebated). Toronto adds up to $4,475 for a combined $8,475 saving.
No — resale homes are HST-exempt. HST applies only to new construction. However, new homes under $500,000 qualify for a partial HST rebate.
Land transfer tax is the biggest line, and Toronto pays it twice
Ontario's land transfer tax is charged on a graduated scale: 0.5% on the first $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2,000,000, and 2.5% above that. On a $500,000 home that comes to $6,475.
Buying inside the City of Toronto means a second, near-identical municipal land transfer tax on top. The same $500,000 purchase costs roughly $12,950 in transfer tax in Toronto against $6,475 in Mississauga — a $6,475 difference decided purely by which side of a boundary the property sits on.
First-time buyers get relief from both: up to $4,000 provincially and up to $4,475 municipally in Toronto. Combined, a first-time buyer in Toronto can save $8,475. The rebate is normally applied by your lawyer at closing so you never pay it — but if it is missed you have 18 months to claim it back, and claims do get missed.
The adjustments that surprise buyers on closing day
Property tax adjustment. Ontario municipalities bill for the calendar year. If the seller has already paid past your closing date, you reimburse them for the remaining days. Close in July on a $5,000 annual bill and you owe roughly $2,300 at the table. Close in February and the adjustment may run the other way.
Prepaid utilities and fuel. If the home has an oil or propane tank, you buy the remaining fuel at closing — sometimes several hundred dollars. Condo fees paid in advance are apportioned the same way.
PST on mortgage default insurance. If your down payment is under 20%, the CMHC-type premium is added to your mortgage — but Ontario charges 8% provincial sales tax on that premium, and it must be paid in cash at closing. On a $400,000 mortgage with 10% down the tax alone can exceed $1,000. It is the single most commonly forgotten cash requirement.
Legal fees: what the quote does and doesn't include
Real estate lawyers in Ontario typically quote $1,200–$2,500, and the quote you are given is often the fee only. Disbursements — title search, registration charges, software fees, couriers, and the title insurance premium — are billed separately and can add several hundred dollars.
Always ask for the all-in figure including disbursements and HST. A $1,200 quote and a $1,700 quote frequently land within $100 of each other once everything is included, and the cheaper headline is sometimes the more expensive lawyer. Title insurance (roughly $250–$500 one-off) is effectively mandatory — lenders require it, and in Ontario it has largely replaced the older survey-and-compliance process.
Costs that only apply to some purchases
- HST on new builds. 13% applies to newly built and substantially renovated homes. Resale homes are exempt. Builder prices usually quote HST-included with the New Housing Rebate already assigned — but that assumes you will live there. Buying a new build as a rental or investment means paying the HST up front and claiming a rebate separately.
- Status certificate — $100 plus HST for a condo, capped by law. Your lawyer must review it, and it is how you learn whether the reserve fund is healthy or a special assessment is looming.
- Non-resident speculation tax — a substantial additional tax where the buyer is not a citizen or permanent resident. Get advice early if this could apply.
- Home inspection — $450–$700, and the best money in the transaction on a resale home.
- Survey or Real Property Report — often avoided by using title insurance instead.
A reasonable planning figure for Ontario is 1.5%–4% of the purchase price in cash at closing, on top of your down payment. Toronto buyers should budget toward the upper end because of the second transfer tax.
Frequently Asked Questions
1.5%–4% of the purchase price in cash, on top of the down payment. Land transfer tax dominates — and Toronto charges a second municipal one.
Up to $4,000 provincial plus up to $4,475 municipal in Toronto. Usually applied at closing — if missed, you have 18 months to claim.
Only on new builds and substantially renovated homes. Resale is exempt. Buying new as an investment means paying HST up front and rebating separately.
The 8% Ontario PST on mortgage default insurance — payable in cash at closing even though the premium itself is added to the mortgage.