Closing Costs in Ontario: What to Budget (2026)

You've saved your down payment — but that's not the only cash you need to close. Closing costs are the fees and taxes due on completion day, and underestimating them is one of the most common (and stressful) buyer mistakes. Here's what to budget in Ontario in 2026.

The short answer

In Ontario, budget roughly 1.5% to 4% of the purchase price for closing costs on top of your down payment. The largest piece is usually land transfer tax (with a first-time-buyer rebate), followed by legal fees, title insurance, and various adjustments. Estimate yours with the closing costs calculator.

The main closing costs

Land transfer tax

The biggest single cost for most buyers. Ontario charges provincial land transfer tax, and Toronto adds a municipal one. First-time buyers get rebates that can eliminate it on lower-priced homes. Full breakdown in land transfer tax in Ontario explained; estimate it with the LTT calculator.

Legal fees and disbursements

A real estate lawyer handles title transfer, registration, and closing — typically $1,000–$2,500 including disbursements. Required on every purchase.

Title insurance

A one-time premium (often a few hundred dollars) protecting against title defects, fraud, and survey issues. Usually arranged through your lawyer.

Home inspection and appraisal

An inspection (~$400–$600) is optional but wise; an appraisal may be required by the lender (sometimes covered, sometimes ~$300–$500).

Adjustments

Reimbursing the seller for prepaid property taxes, utilities, or condo fees beyond the closing date.

Other possible costs

Mortgage default insurance PST (on the CMHC premium, payable at closing in Ontario), moving costs, and an estoppel/status certificate for condos.

Costs that aren't "closing" but hit at the same time

If your down payment is under 20%, CMHC insurance applies — the premium is added to your mortgage, but the PST on it is due at closing. Estimate the premium with the CMHC calculator and confirm your down payment.

How to budget

A safe rule for Ontario is to set aside about 1.5–4% of the price, leaning higher in Toronto (municipal LTT) and lower if you're a first-time buyer claiming the rebates. Build this into your plan alongside your down payment from day one — it's part of the full first-time buyer process. Don't drain every dollar into the down payment and get caught short on closing day.

Frequently asked questions

How much are closing costs in Ontario?

Typically 1.5% to 4% of the purchase price, with land transfer tax usually the largest component, followed by legal fees, title insurance, and adjustments.

What's the biggest closing cost?

Land transfer tax for most buyers — and in Toronto there are two (provincial and municipal). First-time buyers get rebates that reduce or eliminate it on lower-priced homes.

Do first-time buyers pay less in closing costs?

Often yes — the land transfer tax rebate can save up to $4,000 provincially (plus a Toronto municipal rebate), meaningfully lowering total closing costs.

Can I add closing costs to my mortgage?

Generally no — most closing costs must be paid in cash at closing. The CMHC premium is the main exception (added to the mortgage), though its PST is still due at closing in Ontario.

Budgeting your purchase? Talk to us or run the closing costs calculator — we'll make sure you have the full cash-to-close figure before you firm up an offer.