Closing Costs When Buying a Home in Ontario (2026): What to Budget Beyond the Down Payment

The down payment is the number everyone plans for. Closing costs are the number that surprises people three weeks before closing. Budget 1.5% to 3% of the purchase price for a resale home in Ontario, more for new construction. Here is where the money goes.

Land transfer tax (the big one)

Ontario's provincial land transfer tax is calculated on a sliding scale:

Portion of price	Rate
Up to $55,000	0.5%
$55,000 to $250,000	1.0%
$250,000 to $400,000	1.5%
$400,000 to $2,000,000	2.0%
Over $2,000,000 (one or two single-family residences)	2.5%

Examples:

• $800,000 home: about $12,475
• $1,000,000 home: about $16,475
• $1,500,000 home: about $26,475

Buying in the City of Toronto? The municipal land transfer tax roughly doubles this. A $1,000,000 Toronto purchase pays about $32,950 combined. Oakville, Burlington, Mississauga, and Milton have no municipal land transfer tax, which is a meaningful part of why buyers move west.

First-time buyer rebates

• Ontario refunds up to $4,000 of provincial land transfer tax for first-time buyers.
• Toronto refunds up to $4,475 of municipal land transfer tax.

To qualify you must be at least 18, never have owned a home anywhere in the world, and your spouse must not have owned a home while your spouse. The rebate is applied at closing by your lawyer.

Legal fees and disbursements

Budget $1,500 to $2,500 for a real estate lawyer on a standard purchase, including disbursements (title search, registration, courier). Get a quote up front. I can recommend lawyers who are responsive on closing day, which matters more than saving $200.

Title insurance

Typically $300 to $600, purchased through your lawyer. Most lenders require it, and it protects you against title defects, fraud, and survey issues.

Home inspection

$450 to $700 for a detached home in Oakville, less for a condo. In competitive situations some buyers do a pre-offer inspection so they can offer without a condition; the cost is the same, it just happens sooner.

Appraisal

Some lenders require an appraisal, especially when the price runs ahead of comparable sales in a multiple-offer situation. $350 to $500, sometimes covered by the lender.

Mortgage default insurance and the PST on it

If your down payment is under 20%, the CMHC, Sagen, or Canada Guaranty premium is added to your mortgage, so it is not a cash closing cost. However, Ontario charges 8% PST on the premium, and that PST is due in cash at closing. On a $900,000 purchase with 10% down the premium is roughly $25,000 and the PST about $2,000.

Adjustments

The seller has usually prepaid property taxes, and sometimes utilities or condo fees, past the closing date. You reimburse them for your share. Budget $500 to $2,000 depending on timing. Your lawyer's statement of adjustments spells it out.

Interest adjustment

If your closing date does not line up with your mortgage payment date, the lender collects interest for the gap up front. Usually a few hundred dollars.

Moving, utilities, and the things nobody budgets

• Movers: $1,200 to $3,500 for a local move
• Utility hookups and deposits
• Locks, cleaning, immediate repairs
• Appliances if the seller excluded them (read the offer)

New construction: extra line items

Buying a pre-construction condo or new build adds costs that resale does not have:

• HST on the purchase price (often built in, with the builder taking assignment of your rebate; confirm)
• Development charges and levies, which can be tens of thousands unless capped in the agreement
• Tarion warranty enrolment fee
• Occupancy fees on condos between occupancy and final closing

Have a lawyer review any builder agreement before the 10-day cooling-off period ends.

A sample budget: $900,000 townhome in River Oaks, first-time buyer, 10% down

Item	Amount
Land transfer tax	$14,475
Less first-time buyer rebate	-$4,000
Legal fees and disbursements	$2,000
Title insurance	$450
Home inspection	$550
PST on mortgage insurance	~$2,000
Adjustments	$1,000
Total closing costs	~$16,500

Plus the down payment of $65,000, for cash needed at closing of roughly $81,500, before moving costs.

How to make sure the cash is there

Lenders want to see closing costs in your account on top of the down payment, and they want them there for 90 days. When I pre-approve a buyer I build the closing cost estimate into the plan from day one, so there is no scramble in the last month. Start with the pre-approval check or read the First-Time Home Buyer Guide.

Figures are estimates for planning purposes as of 2026 and vary by property, lender, and lawyer. Confirm land transfer tax with your lawyer and current rebate eligibility with the Ontario Ministry of Finance.