Question 1

How much are closing costs in Toronto in 2026?

Accepted Answer

Closing costs in Toronto typically range from 3% to 5% of the purchase price, because Toronto buyers pay both Ontario provincial land transfer tax AND the Toronto Municipal Land Transfer Tax (MLTT). On a $900,000 Toronto condo, expect $30,000–$45,000+ in closing costs including both LTTs, legal fees ($1,500–$2,500), title insurance ($300–$500), and PST on CMHC insurance if applicable.

Question 2

Do first-time home buyers get a land transfer tax rebate in Toronto?

Accepted Answer

Yes. First-time home buyers in Ontario receive a rebate of up to $4,000 on the Ontario provincial land transfer tax. In Toronto, there's an additional municipal rebate of up to $4,475 on the Toronto MLTT. Combined, first-time buyers in Toronto can save up to $8,475 on land transfer taxes.

Question 3

What is PST on CMHC insurance in Ontario and how much is it?

Accepted Answer

Ontario charges 8% provincial sales tax (PST) on CMHC mortgage default insurance premiums. Unlike the CMHC premium itself (which is added to your mortgage), the PST must be paid in cash at closing. On a $500,000 insured mortgage with a 4% CMHC premium ($20,000), you'd owe $1,600 in PST at closing.

Question 4

How much are legal fees when buying a house in Ontario?

Accepted Answer

Real estate legal fees in Ontario typically range from $1,500 to $2,500 for straightforward purchases, plus disbursements ($300–$600) for title searches, registration, and courier fees. Condos can be slightly higher due to status certificate review. Budget $1,800–$3,000 total for a typical Ontario home purchase.

Question 5

What is title insurance in Canada and do I need it?

Accepted Answer

Title insurance is a one-time policy that protects against title defects, fraud, survey issues, and certain types of municipal non-compliance. In Ontario it costs $300–$500 and most lawyers strongly recommend it — some lenders require it. Unlike other insurance, there are no annual premiums — you pay once at closing for permanent coverage.

Question 6

What closing costs can first-time buyers in Ontario avoid or reduce?

Accepted Answer

First-time buyers can eliminate or reduce: (1) Ontario LTT — up to $4,000 rebate; (2) Toronto MLTT — up to $4,475 rebate; (3) Home inspection — shop around, costs $400–$600; (4) Mortgage broker fee — entirely available for most buyers (broker is paid by the lender). CMHC PST and legal fees are unavoidable but can be minimized by comparing lawyers.

Question 7

How much cash do I need at closing beyond the down payment in Ontario?

Accepted Answer

Beyond your down payment, budget an additional 1.5–5% of the purchase price for closing costs. Key cash items: land transfer tax (and Toronto MLTT if applicable), PST on CMHC insurance, legal fees, title insurance, home inspection, and prepaid property taxes/condo fees. Use this calculator to get your exact cash-to-close figure.

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