Beyond your down payment, budget 1.5%–4% of the purchase price for closing costs in Ontario. The biggest line is land transfer tax — and in Toronto you pay it twice. Here's every closing cost broken down for 2026, with a worked example and the first-time-buyer rebates that claw some of it back.
What closing costs are — and how much to budget
Closing costs are the one-time expenses you pay to complete a home purchase, separate from your down payment. In Ontario they run roughly 1.5% to 4% of the purchase price — and the range is wide because the single biggest cost, land transfer tax, depends heavily on where you buy. Inside Toronto, you pay land transfer tax twice (provincial plus municipal), which pushes a Toronto purchase toward the top of that range.
Unlike your down payment, most closing costs must be paid in cash at closing and cannot be financed into the mortgage. Budgeting them up front is the difference between a smooth close and a scramble at the lawyer's office.
Land transfer tax — your biggest closing cost
Ontario charges a tiered land transfer tax (LTT) at closing. The rate climbs with price:
| Portion of price | Ontario LTT rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 – $250,000 | 1.0% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
First-time buyer land transfer tax rebates
First-time buyers get meaningful relief on the largest cost. Ontario refunds up to $4,000 of the provincial LTT, and the City of Toronto refunds up to $4,475 of its municipal LTT. On a modestly priced home these rebates can erase the land transfer tax entirely.
The rebate is applied at closing by your lawyer — you don't wait for a cheque. To qualify you must be 18+, never have owned a home anywhere in the world, and occupy the home as your principal residence within 9 months.
Legal fees, title insurance and disbursements
- Legal fees: $1,500–$2,500. A real-estate lawyer registers your mortgage and title, runs the title search, manages the trust ledger, and wires funds on closing day. Includes disbursements (registration, software, courier).
- Title insurance: $300–$500. A one-time premium protecting you and the lender against title defects, fraud, and survey issues. Required by virtually every lender.
- Status certificate (condos): ~$100. Orders the condo corporation's financial and legal status — your lawyer reviews it before you close.
Inspection, appraisal and the PST surprise
- Home inspection: $400–$700. Optional but strongly recommended on resale homes — it's your only protection (new builds have Tarion warranty coverage).
- Appraisal: $300–$500. Often paid by the lender on insured deals; budget it on conventional or B-lender files where it isn't covered.
- PST on mortgage insurance: 8% of the premium. If you put less than 20% down, Ontario charges 8% PST on the CMHC/Sagen/Canada Guaranty premium — payable in cash at closing, not financeable. On a $20,000 premium that's $1,600.
Worked example: an $800,000 Toronto purchase
Here's the full cash-to-close stack for a non-first-time buyer putting 20% down on an $800,000 Toronto home (no mortgage insurance, so no PST line):
| Closing cost | Amount |
|---|---|
| Ontario land transfer tax | $12,475 |
| Toronto municipal LTT | $12,475 |
| Legal fees + disbursements | $2,000 |
| Title insurance | $400 |
| Home inspection | $500 |
| Appraisal (lender-covered) | $0 |
| Estimated total | ≈ $27,850 |
How to budget — and reduce — your closing costs
We give you the complete cash-to-close for your Ontario purchase up front, factoring your municipality, down payment, and first-time-buyer status. Pair this with our buying a home in Canada guide for the full picture.
- Run the real number first. Use our closing costs calculator for your exact price, province and municipality.
- Claim every rebate. First-time buyers should confirm both the Ontario and (if applicable) Toronto LTT rebates with their lawyer.
- Shop your lawyer. Flat fees vary; ask for an all-in quote including disbursements.
- Budget the PST-on-insurance line if you're putting less than 20% down.
- Ask your broker for the full cash-to-close before you write an offer — down payment + closing costs together — so there are no surprises.
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