Closing Costs in Ontario: The Complete 2026 Checklist (Don't Get Surprised)

Closing costs in Ontario are the one-time expenses every buyer pays on top of the purchase price and down payment — and for most Ontario homebuyers, they are also the most underestimated part of buying a home. The down payment gets the attention. The closing costs arrive later, bigger than expected.

Most buyers know they need a down payment. Far fewer realize they also need a separate cash reserve for closing costs — covering land transfer tax, legal fees, title insurance, home inspection, CMHC mortgage insurance (in some cases), and several other items that are due in full on closing day.

Quick answer: Closing costs in Ontario typically add an estimated 1.5% to 4% of the purchase price on top of your down payment. As a planning example, on a $750,000 home that is roughly $11,250 to $30,000 in additional cash required at closing. The actual total depends on where you buy (Toronto buyers face a second land transfer tax), your down payment size, and whether you qualify for any first-time buyer rebates. These costs cannot be rolled into your mortgage — they must be paid in cash on closing day.

This guide covers every major closing cost in Ontario with a complete 11-item checklist, a side-by-side $750,000 Toronto example comparing first-time buyer costs vs. returning buyer costs, and the key differences when buying a new build vs. a resale home.

Key Takeaways

• Closing costs in Ontario typically add an estimated 1.5% to 4% above your down payment — roughly $11,250 to $30,000 on a $750,000 purchase, as an example. Your lawyer provides the exact figures before closing.
• Land transfer tax is usually the largest single closing cost. Toronto buyers pay both provincial Ontario LTT and Toronto municipal LTT — roughly double. First-time buyers may qualify for up to $8,475 in combined rebates.
• CMHC mortgage insurance (if your down payment is under 20%) is added to your mortgage balance — not paid in cash. But Ontario PST of 8% on that CMHC premium is a cash cost at closing.
• New build closing costs include HST adjustments, Tarion warranty enrollment, and possible development levies — costs that do not apply to resale homes. Always review your Agreement of Purchase and Sale with a real estate lawyer.
• Your real estate lawyer prepares a full statement of adjustments before closing. Ask for it at least a week in advance to confirm the exact cash amount you need ready.
• Save closing costs separately from your down payment. Arriving at closing without the correct cash amount can delay or derail the entire transaction.

How Much Should You Budget for Closing Costs in Ontario?

Closing costs in Ontario work by adding an estimated 1.5% to 4% of the purchase price on top of your down payment — and this range exists because the actual total depends heavily on where you are buying, the property type, your down payment size, and your buyer profile.

Closing costs (the term for all one-time expenses paid on the day ownership transfers from seller to buyer in Ontario) are completely separate from your mortgage and your down payment. They are cash you must have in addition to everything else.

Why does the range span 1.5% to 4%? Because several major closing cost items are situational:

• A returning buyer purchasing a resale home outside Toronto with a 20% or larger down payment will typically land toward the lower end — closer to 1.5% to 2%. There is no Toronto municipal land transfer tax and no CMHC insurance premium to pay.
• A first-time buyer purchasing a $750,000 Toronto condo with 10% down will land closer to 3% to 4%. They pay both Ontario and Toronto land transfer tax (partially reduced by rebates), plus Ontario PST on the CMHC insurance premium added to their mortgage.
• A new build buyer may land above 4% due to HST adjustments and Tarion warranty fees that do not apply to resale purchases. The final number depends on the specific HST clause in the purchase agreement.

The most important takeaway: closing costs come on top of your down payment. If you are buying a $750,000 home and have saved exactly your minimum down payment, you still need an additional closing cost reserve. Treat them as two separate line items in your budget — down payment and closing costs.

Bottom line: Use the 1.5% to 4% range as a starting budget guideline. Then ask your real estate lawyer for a statement of adjustments well before closing day so you know the exact amount. Arriving short at closing is a problem you can avoid completely with a little planning.

The Complete Ontario Closing Costs Checklist — 11 Items

The closing costs every Ontario homebuyer may encounter fall into 11 main categories — knowing each one in advance is how you avoid being surprised on closing day.

Here is the complete Ontario closing costs checklist for 2026:

1. Ontario Land Transfer Tax — A provincial tax paid by the buyer on every property purchase in Ontario. Calculated using a five-tier bracket system based on the purchase price. First-time buyers may qualify for a rebate of up to $4,000 on the provincial LTT, applied directly at closing by your lawyer.
2. Toronto Municipal Land Transfer Tax (Toronto purchases only) — A second land transfer tax that applies when you buy within the City of Toronto boundary. Uses the same bracket structure as the provincial LTT, effectively doubling the land transfer tax cost. First-time buyers in Toronto may qualify for an additional rebate of up to $4,475.
3. Legal Fees and Disbursements — Your real estate lawyer handles title registration, mortgage preparation, title search, and disbursement of closing funds. Legal fees vary depending on the transaction and the lawyer. Disbursements (third-party costs your lawyer pays on your behalf) are charged separately. Always ask for a written quote in advance.
4. Title Insurance — Protects you and your lender against title defects, encroachments, survey issues, and certain fraud risks. Required by most lenders in Ontario. A one-time premium paid at closing, typically a few hundred dollars depending on the property and insurer.
5. Home Inspection Fee — A professional inspection of the property's condition before purchase. Optional but strongly recommended on resale homes. In competitive bidding situations some buyers waive inspection to strengthen their offer — understand that this transfers the risk of unknown defects to you. Fees vary by inspector and property size.
6. CMHC Mortgage Insurance Premium and Ontario PST — Applies when your down payment is less than 20% of the purchase price. The CMHC insurance premium (set by CMHC based on your loan-to-value ratio) is added to your mortgage balance and is not a cash cost at closing. However, Ontario charges 8% PST on that CMHC premium — and that PST portion must be paid in cash at closing.
7. Property Tax Adjustment — If the seller has prepaid property taxes for the period after your closing date, your lawyer calculates how much you owe them as a reimbursement. This is a standard closing adjustment that varies depending on your closing date and the local property tax schedule.
8. Appraisal Fee — Some lenders require an independent property appraisal to confirm market value before approving your mortgage. Fees vary by property and appraiser. Your mortgage broker can tell you whether your lender requires a formal appraisal for your specific transaction.
9. Home Insurance (First Payment) — Lenders require proof of home insurance in place at closing. Many insurers collect the first payment at or before closing day. Budget for this as a separate item from your other closing costs.
10. HST on New Builds (New Construction Only) — New homes in Ontario are subject to 13% HST. Many builder purchase agreements include an HST New Housing Rebate credit for eligible owner-occupants, effectively reducing the net HST cost. If you are purchasing as an investor and plan to rent the property, you may not qualify for the owner-occupant rebate, which can add a significant cost at closing. Always review the HST clause with your real estate lawyer before signing.
11. Tarion New Home Warranty Enrollment Fee (New Builds Only) — New homes in Ontario are enrolled in the Tarion New Home Warranty Program, which provides coverage on workmanship, materials, and building defects. The enrollment fee is typically included in the builder's purchase price, but confirm this with your builder and lawyer before signing.

Use lendsimpl's Ontario closing cost calculator to estimate your total closing costs based on your purchase price and buyer profile before your offer goes in.

Land Transfer Tax — Usually the Biggest Closing Cost in Ontario

Land transfer tax is typically the single largest closing cost for Ontario homebuyers — and for anyone purchasing within the City of Toronto, it is effectively doubled by a second municipal land transfer tax applied on top of the provincial one.

Land transfer tax (the provincial tax paid by the buyer every time a property deed is registered in Ontario) is calculated using a five-tier bracket system. Each tier rate applies only to the portion of the purchase price that falls within that tier — similar to how income tax brackets work.

To give you a sense of how the brackets work, here is how Ontario land transfer tax would be calculated on a $750,000 purchase (this is an example to show the calculation method — statutory rates are set by the Ontario Land Transfer Tax Act and can be updated by the province):

• First $55,000 of purchase price at the first-tier rate: $275
• Next $195,000 (from $55,001 to $250,000) at the second-tier rate: $1,950
• Next $150,000 (from $250,001 to $400,000) at the third-tier rate: $2,250
• Remaining $350,000 (from $400,001 to $750,000) at the fourth-tier rate: $7,000
• Example Ontario LTT total on $750,000: $11,475

For buyers purchasing within the City of Toronto, a Toronto Municipal Land Transfer Tax applies using the same bracket structure — producing an equal additional amount. In the above example, that would add another $11,475, bringing the combined example LTT total to $22,950 for a Toronto purchase.

First-time buyers may qualify for rebates that reduce these amounts: up to $4,000 on the provincial Ontario LTT and up to $4,475 on the Toronto municipal LTT, for a combined maximum rebate of $8,475. These rebates are applied at closing by your real estate lawyer — there is no separate claim to file afterward.

An important geographic note: the Toronto municipal land transfer tax applies only within the official City of Toronto boundary. Areas that are geographically close to Toronto but outside that boundary — such as Mississauga, Brampton, Markham, Vaughan, Richmond Hill, Pickering, and Ajax — pay only the provincial Ontario LTT. However, Scarborough, North York, and Etobicoke are within the City of Toronto and are subject to the Toronto MLTT even though they feel geographically separate. Confirm with your lawyer whether your property falls within the Toronto boundary.

Bottom line: Land transfer tax is a mandatory cash cost at closing that cannot be added to your mortgage. Budget for it as a separate item, and ask your lawyer to confirm the exact amount — including whether you qualify for any first-time buyer rebates — before your closing date.

See the full breakdown of how Ontario and Toronto land transfer tax is calculated in our detailed guide: Ontario Land Transfer Tax: How Much Will You Pay and How to Calculate It.

Legal Fees and Your Real Estate Lawyer's Role at Closing in Ontario

Your real estate lawyer plays the central role in making your Ontario home purchase close — and understanding what they do and why their fees exist helps you budget for this cost with confidence rather than guesswork.

Here is what an Ontario real estate lawyer does at closing, step by step:

1. Title search — Your lawyer searches the Ontario land registry to confirm the seller holds clear title to the property, identify any outstanding liens, mortgages, or encumbrances registered against the property, and verify the legal property description matches what you are purchasing.
2. Mortgage preparation and registration — If you are borrowing, your lawyer prepares the mortgage document on behalf of your lender and registers it on the property in the provincial land registry. This is part of what your legal fees cover.
3. Statement of adjustments — Your lawyer prepares a complete breakdown of every charge, rebate, and adjustment connected to your purchase. This includes the purchase price, land transfer tax, any property tax adjustment, outstanding utilities, and credits. You receive this before closing day so you know exactly how much cash you need to transfer to your lawyer's trust account.
4. First-time buyer rebate application — If you qualify for the Ontario and/or Toronto land transfer tax first-time buyer rebate, your lawyer applies it directly at closing. The rebate reduces what you owe; you receive the benefit immediately without filing a separate application after the fact.
5. Closing day registration — On the agreed closing date, your lawyer registers the transfer of title and the mortgage in the Ontario land registry. Once confirmed, your lawyer releases the purchase funds to the seller's lawyer, and you receive the keys.
6. Disbursements — Beyond legal fees, your lawyer pays third-party costs on your behalf: title registration fees, land registry search fees, courier costs, and similar items. These are itemized separately on your statement and charged to you at closing.

Legal fees in Ontario vary depending on the complexity of the transaction, the lawyer, and the municipality. Always ask for a written quote before retaining a real estate lawyer, and confirm whether disbursements are included or charged separately. Getting a quote in advance removes one of the most common sources of closing day surprises.

First-time buyers should review our full guide on mortgage tips for first-time homebuyers in Ontario to understand the complete buying process from pre-approval to closing.

New Build Closing Costs in Ontario — HST, Tarion, and What Changes

New build closing costs in Ontario are structured differently than resale home closing costs — and for buyers in high-growth communities like Scarborough, North York, Pickering, Ajax, Richmond Hill, and Brampton where new condo towers and townhome projects are common, understanding these differences before signing a purchase agreement is essential.

Here are the key differences that apply specifically to new construction purchases:

HST (Harmonized Sales Tax)

New homes in Ontario are subject to 13% Harmonized Sales Tax (HST), which is the federal and provincial sales tax combined. Resale homes are generally not subject to HST.

For eligible owner-occupants, an HST New Housing Rebate is available that reduces the net HST cost significantly. In most cases, builders factor this rebate into the stated purchase price — meaning the price you see in the marketing materials already accounts for the rebate reduction. However, to receive this adjustment at closing, you must qualify for the rebate (you must intend to use the home as your primary residence).

If you are purchasing a new build as an investment property and plan to rent it out rather than live in it, you generally do not qualify for the owner-occupant HST rebate. This can mean a significant additional cost at closing that was not obvious in the purchase price. Always clarify the HST treatment with your real estate lawyer before you sign the Agreement of Purchase and Sale.

Tarion New Home Warranty

All new homes in Ontario are covered by the Tarion New Home Warranty Program (Tarion is the organization that administers mandatory new home warranty coverage in Ontario). The warranty covers workmanship and materials defects, water penetration, and major structural defects for specified periods. Builders are required to enroll every new home with Tarion before it is sold.

The Tarion enrollment fee is typically factored into your purchase price by the builder. Confirm with your builder and real estate lawyer whether this fee is included in the stated price or charged as a separate closing adjustment — because if it is separate, it affects how much cash you need at closing.

Development Charges and Levies

New build purchases may also carry additional closing adjustments for municipal development charges, education levies, and parkland dedication fees. These charges reflect the cost municipalities impose on new development to fund infrastructure, schools, and parks. Builders sometimes pass these costs through to buyers as closing adjustments. Review every line item in your purchase agreement with your lawyer well before your occupancy date.

Bottom line: If you are buying a new build in Ontario, your closing costs could look very different from a resale purchase at the same price point. Budget for HST adjustments, Tarion fees, and potential development levies in addition to all the standard items on the checklist above. A real estate lawyer who has experience with new build closings in Ontario is essential.

Real Example: Total Closing Costs on a $750,000 Toronto Home — First-Time Buyer vs Returning Buyer

Seeing all closing costs side by side on a single $750,000 Toronto purchase — for a first-time buyer vs a returning buyer — is the clearest way to understand how much the same property can cost depending on who is buying.

Important note: The figures below are for illustration purposes only. They are planning examples, not guaranteed amounts. Land transfer tax calculations are based on the current Ontario and Toronto LTT bracket structure. All other figures (legal fees, title insurance, appraisal, etc.) are shown as general ranges — your actual costs will depend on your specific lender, lawyer, property, and closing adjustments. Your real estate lawyer will provide exact figures in your statement of adjustments before closing.

Example: $750,000 Resale Condominium, City of Toronto

Ontario Land Transfer Tax (Example Calculation on $750,000)

• Example LTT total before rebates: $11,475
• First-time buyer rebate (if eligible): up to $4,000 reduction
• After rebate example — FTB: approximately $7,475 | Returning buyer: $11,475

Toronto Municipal Land Transfer Tax (City of Toronto Only)

• Example Toronto MLTT total before rebates: $11,475
• First-time buyer rebate (if eligible): up to $4,475 reduction
• After rebate example — FTB: approximately $7,000 | Returning buyer: $11,475

Combined Land Transfer Tax Comparison (Example)

• First-time buyer with both rebates applied (example): approximately $14,475
• Returning buyer with no rebates (example): approximately $22,950
• Rebate savings in this example: up to $8,475

Other Closing Costs to Budget For (These Vary — Ask Your Lawyer)

• Legal fees and disbursements: varies — request a written quote from your real estate lawyer before retaining them
• Title insurance: typically a few hundred dollars — your lawyer arranges this
• Home inspection: varies by property and inspector — a licensed home inspector provides a quote
• Ontario PST on CMHC premium: applies if your down payment is under 20% — your mortgage broker can calculate this based on your loan amount
• Property tax adjustment: depends on your closing date and when the seller last paid — your lawyer calculates this
• Home insurance first payment: contact insurers for a quote before your closing date

5 Closing Cost Items Toronto Buyers Often Forget to Budget For

1. Property tax adjustments — If the seller has prepaid property taxes past your closing date, you reimburse them the remaining portion. This amount varies depending on when you close and the municipal tax schedule. It can be a few hundred to a few thousand dollars.
2. Ontario PST on the CMHC premium — If your down payment is below 20%, your CMHC insurance premium is added to your mortgage balance. But Ontario charges PST at 8% on that CMHC premium in cash at closing. Your mortgage broker can calculate the exact PST amount based on your loan-to-value ratio.
3. Moving costs — Not a closing cost technically, but the expense happens at the same time. Budget for professional movers, temporary storage if needed, and any immediate repairs or changes to the property after you take possession.
4. Utility connection deposits and setup fees — Some utilities require a security deposit when setting up a new account. Small individually, but easy to overlook when you are focused on larger closing figures.
5. Toronto MLTT for properties near the city boundary — Scarborough, North York, and Etobicoke are within the City of Toronto and subject to the Toronto MLTT, even though they feel geographically distinct from the downtown core. Many buyers researching closing costs assume they are outside the Toronto boundary and budget incorrectly. Confirm the municipal boundary with your lawyer before finalizing your closing budget.

Bottom line: On a $750,000 Toronto purchase, the land transfer tax alone represents a meaningful difference between first-time and returning buyers — roughly $8,475 in rebates if you qualify. But the total closing cost picture includes several other items that require separate cash at closing. Start with your lawyer's statement of adjustments and plan from there, rather than estimating backward from the purchase price alone.

For a detailed look at how CMHC mortgage insurance works — including how the premium is calculated and what it means for your closing costs — see our guide: how CMHC mortgage insurance works in Canada.

Frequently Asked Questions About Closing Costs in Ontario

How much are closing costs when buying a home in Ontario?

Closing costs in Ontario typically add an estimated 1.5% to 4% of the purchase price on top of your down payment. As a planning example, on a $750,000 home that works out to roughly $11,250 to $30,000 in additional cash you need at closing. The actual amount depends on where you are buying — Toronto buyers pay a second municipal land transfer tax that raises the total — your down payment size, whether you qualify for first-time buyer rebates, and the specific adjustments your lawyer calculates. Your real estate lawyer provides the exact figure in a statement of adjustments before your closing date.

What is the biggest closing cost when buying a home in Ontario?

For most Ontario homebuyers, land transfer tax is the single largest closing cost line item. On any resale home purchase in Ontario, the provincial land transfer tax is calculated on the full purchase price using a five-tier bracket system. For buyers within the City of Toronto, a second municipal land transfer tax applies using the same brackets, nearly doubling the land transfer tax total. On a $750,000 Toronto purchase as an example, the combined land transfer tax could be approximately $22,950 before any first-time buyer rebates. Legal fees, title insurance, and home inspection are significant but typically smaller individually than the LTT.

Do first-time buyers pay closing costs in Ontario?

Yes — first-time buyers in Ontario pay closing costs, including land transfer tax. However, eligible first-time buyers can claim a rebate on the provincial land transfer tax of up to $4,000 and, if purchasing within the City of Toronto, an additional municipal rebate of up to $4,475. The combined maximum rebate is $8,475. These rebates are applied directly at closing by your real estate lawyer — there is no separate application to file afterward. To qualify, you must be a Canadian citizen or permanent resident who has never previously owned a home anywhere in the world and must occupy the property as your principal residence within nine months of closing. Speak with a licensed Ontario mortgage broker and your real estate lawyer to confirm your eligibility before closing.

Is CMHC mortgage insurance a closing cost?

CMHC mortgage insurance applies when your down payment is less than 20% of the purchase price, as required under federal mortgage insurance rules (OSFI and the National Housing Act). The CMHC insurance premium itself is added directly to your mortgage balance — it is not paid in cash at closing. However, Ontario charges 8% PST on the CMHC premium, and that PST amount is a cash closing cost. For example, on a larger insured mortgage, the PST on the CMHC premium could be a meaningful additional cash requirement on closing day. Your mortgage broker can calculate the exact PST amount based on your purchase price and down payment. Speak with a licensed Ontario mortgage brokerage to understand how CMHC insurance affects your total financing picture.

Are closing costs higher on a new build than a resale home in Ontario?

Closing costs on new builds in Ontario are often higher than on comparable resale homes, primarily because of HST and Tarion warranty fees that do not apply to resale purchases. New homes in Ontario are subject to 13% HST. Eligible owner-occupants can claim an HST New Housing Rebate, which is typically factored into the builder's stated price. However, if you do not qualify for the rebate — for example, if you are purchasing as an investment — the HST cost at closing can be significant. Tarion enrollment fees and potential development levies may also add to the total. Always review your Agreement of Purchase and Sale with a real estate lawyer before signing.

What should I do if I don't have enough for closing costs in Ontario?

If you are concerned your savings may not cover both your down payment and closing costs, the best first step is to speak with a licensed mortgage brokerage in Ontario. A broker can review your full financial picture — including what government programs you may qualify for, whether a gifted down payment is possible, and which lenders may work with your specific situation. lendsimpl is a licensed mortgage brokerage in Ontario (FSRA #13763) and works with 30+ lenders to help buyers understand their options before making a commitment. Do not wait until your offer is accepted to run these numbers — know your closing cost total before you decide on a purchase price.