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Closing Costs

Closing Costs in Ontario: What You Pay and How to Estimate It (2026)

Every cost due on closing day, with a $900,000 Toronto example and a way to estimate your own.
The short answer
Closing costs in Ontario typically run from about 1.5% to 4% of the purchase price, paid on top of your down payment. Land transfer tax is the largest item. On a $900,000 home, Ontario land transfer tax is $14,475. If the home is in the City of Toronto you also pay Toronto's municipal land transfer tax, another $14,475, for $28,950 in total.
An eligible first-time buyer can receive up to $8,475 back, which brings the tax to $20,475. With legal fees and disbursements, title insurance and the usual adjustments, such a buyer should plan for roughly $27,325. Outside Toronto the same purchase costs about $14,475 less, because there is no municipal tax.

Closing Costs at a Glance: A $900,000 Toronto Home

Item
Estimate (first-time buyer)
Ontario land transfer tax
$14,475
Toronto municipal land transfer tax
$14,475
Less: Ontario first-time buyer refund
-$4,000
Less: Toronto first-time buyer rebate
-$4,475
Land transfer tax payable
$20,475
Legal fees and disbursements (example)
$2,200
Title insurance (example)
$750
Home inspection (example)
$600
PST on mortgage default insurance premium, if insured (example)
$1,800
Property tax and utility adjustments (example)
$1,500
Estimated closing costs
$27,325
Land transfer tax is calculated from the published rates. The other lines are examples, so replace them with the amounts in your own quotes. A buyer who is not a first-time buyer skips the two rebate lines and pays about $35,800. The same home in Vaughan, Mississauga, Brampton or Markham has no municipal tax, so an eligible first-time buyer's estimate is about $17,325.

How to Estimate Your Closing Costs in Five Steps

1

Calculate Ontario land transfer tax

Apply the provincial rates to the part of the price that falls in each bracket. The table in section 1 shows the result for common prices.
2

Add Toronto's municipal land transfer tax, if it applies

Homes inside the City of Toronto pay a second tax at the same rates up to $3,000,000. Homes in Vaughan, Mississauga, Brampton, Markham and the rest of Ontario do not.
3

Subtract first-time buyer refunds, if you qualify

Ontario refunds up to $4,000 and Toronto rebates up to $4,475. You and your spouse must never have owned a home anywhere in the world.
4

Add legal fees, disbursements and title insurance

Ask your lawyer for a written quote. Our guide to real estate lawyer fees in Ontario explains what is included.

5

Add adjustments and other costs

Include property tax and utility adjustments, PST on the mortgage insurance premium if your mortgage is insured, your home inspection and any appraisal fee.

1. Land Transfer Tax

In Toronto, buyers pay two taxes: the Ontario land transfer tax and the City of Toronto's municipal land transfer tax. Elsewhere in Ontario only the provincial tax applies. Both are calculated in brackets on the purchase price. The table shows the tax on common prices for a home with one or two single-family residences.
Purchase price
Ontario tax
Toronto tax (Toronto homes only)
Total in Toronto after first-time relief
$500,000
$6,475
$6,475
$4,475
$700,000
$10,475
$10,475
$12,475
$900,000
$14,475
$14,475
$20,475
$1,200,000
$20,475
$20,475
$32,475
$1,500,000
$26,475
$26,475
$44,475

The full rate schedule, Toronto’s higher rates above $3,000,000, exemptions and how to claim a refund you missed are in our Ontario land transfer tax guide. The official figures are on Ontario.ca and the City of Toronto website.

2. Legal Fees and Disbursements

You need a lawyer to close a real estate purchase in Ontario. Your real estate lawyer searches title, prepares the mortgage documents, checks for liens, registers the transfer and moves the funds.

Two kinds of cost come from this. Professional fees are what the lawyer charges for the work, and they vary by firm and by how complicated the file is. Disbursements are out-of-pocket costs paid on your behalf, such as the title search, registration fees, the electronic closing platform and couriers. Ask for a written quote that lists both. Our lawyer fees guide explains what a flat fee covers and which costs are charged separately.

3. Title Insurance

Title insurance is not required by law in Ontario, but many lenders require a lender’s policy. A policy protects against losses from title defects, survey errors, encroachments and title fraud. It is a one-time premium paid at closing, and an owner’s policy lasts as long as you own the home. A typical premium for a home purchase is between a few hundred dollars and about $900, depending on the price. Your lawyer arranges it and confirms the exact premium. Our title insurance guide explains what a policy covers and what it leaves out.

4. Other Costs to Budget For

Home inspection: $500 to $800

The law does not require one, but it is a sensible cost for any buyer. An inspection can reveal structural problems, outdated wiring or moisture in the basement.

Appraisal: $350 to $600

Your lender may require an independent appraisal before it lends. Some lenders cover the fee, so ask before you pay.

Property tax and utility adjustments: $1,000 to $3,500

The seller may have prepaid property tax or filled an oil or propane tank. Your lawyer prepares a Statement of Adjustments so you reimburse the seller for the period after closing. The amount varies widely.

PST on mortgage default insurance

If your down payment is under 20%, you need mortgage default insurance. The premium is usually added to your mortgage, but the 8% PST on the premium is paid in cash at closing. For example, a $22,500 premium means $1,800 of PST.

Interest adjustment

If your mortgage starts before your first regular payment period begins, the lender may charge interest for the gap between the closing date and the start of that period.

Condo status certificate: about $100

Condo buyers need their lawyer to review the status certificate, which shows the financial health of the condo corporation.

Pre-construction levies: $5,000 to $30,000 or more

Buyers of new condos and townhomes can face development charges and education levies at closing. Ask your lawyer to negotiate a cap in the agreement. See our pre-construction condo service.

Moving and first-day costs

Full-service movers within Toronto typically cost $1,200 to $3,000. Changing the locks is a sensible first-day expense, usually $200 to $400.
These estimates do not include your down payment, mortgage payments, furniture or repairs. Non-residents may also owe Ontario's Non-Resident Speculation Tax, currently 25% of the price, so confirm your residency status with your lawyer before you sign.

Planning Tips

1

Keep a safety buffer

Consider holding at least $5,000 in savings beyond your calculated closing costs, for adjustments and immediate repairs.
2

Ask for an itemized estimate early

Contact a real estate lawyer before you make an offer. We can go through your numbers and list the disbursements so you can set your budget.
3

Check that every rebate is claimed

If you qualify for first-time buyer relief, your lawyer can claim it when the transfer is registered.

Frequently Asked Questions

Related Guides

Legal Information, Not Legal Advice. This page gives general estimates based on published Ontario and City of Toronto land transfer tax rates, checked on October 8, 2026. Rates, rebates and eligibility rules can change, and your actual costs depend on your transaction. Speak with a real estate lawyer before you rely on any figure.

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