What are closing costs in Ontario?

In Ontario, closing costs are what you pay on closing day on top of your down payment, and the largest is usually land transfer tax. You also pay legal fees, title insurance, and property tax and utility adjustments. If your mortgage is insured, you also pay the provincial sales tax on the insurance premium.

The main closing costs in Ontario

Ontario land transfer tax (LTT): a provincial tax on the purchase price, charged in brackets. Land transfer tax is paid in cash at closing.
Municipal land transfer tax: in Toronto only, a second tax on the same brackets up to $2 million.
Legal fees and disbursements: your real-estate lawyer handles the title search, registration and transfer of funds.
Title insurance: often required by the lender; your lawyer arranges it.
Adjustments: if the seller prepaid property tax or utilities, you reimburse the seller for the part that covers the time after closing.
Sales tax on mortgage insurance: if you put less than 20% down, Ontario charges 8% sales tax on the mortgage insurance premium, and that tax cannot be added to the mortgage (sources: ontario.ca and cmhc-schl.gc.ca, checked October 2026).
Appraisal and inspection: sometimes paid by the lender, sometimes by you; an inspection is your choice.

Lawyer fees, title insurance and adjustments vary by property, so we do not quote figures for them. Ask your lawyer for an estimate before you firm up your offer.

A worked example of land transfer tax

Ontario's rates (ontario.ca, checked October 2026) are 0.5% up to $55,000, 1.0% to $250,000, 1.5% to $400,000, 2.0% to $2 million, and 2.5% above that, for homes with one or two single-family residences.

On a $700,000 home:

0.5% of the first $55,000 is $275.
1.0% of the next $195,000 is $1,950.
1.5% of the next $150,000 is $2,250.
2.0% of the remaining $300,000 is $6,000.

Ontario LTT is $10,475. In Toronto, the municipal tax uses the same brackets, so the total would be $20,950.

First-time buyers can get money back. Ontario refunds up to $4,000 of its tax, and Toronto rebates up to $4,475 of its tax. Ontario's refund requires you to be 18 or older, to live in the home within nine months, and to apply within 18 months. Your lawyer usually claims the refund at registration.

You can try other prices in the land transfer tax calculator. The calculator's results are estimates only, not an offer or advice.

How closing costs affect your mortgage

Closing costs are generally paid from your own funds, not borrowed. Lenders often want to see that you have money set aside for closing costs on top of the down payment, so plan for both when you set your budget. A lender may ask for statements showing those funds.

Your lawyer will send you a statement of adjustments shortly before closing with the exact amount to bring. For questions about rebates and tax, your lawyer or an accountant is the right person to ask.

What to do next

If you want help working out the full cash you need at closing, use our call-me-back form. You can also read our guide to buying a home.

Common follow-up questions

Can I add closing costs to my mortgage?

Generally, no. The mortgage insurance premium can usually be added to an insured mortgage, but land transfer tax, legal fees and the sales tax on the premium are paid in cash.

Do I pay land transfer tax on a refinance?

No. Land transfer tax applies when property changes hands, not when you refinance or switch lenders, although a refinance has its own legal and appraisal costs.

Who gets the first-time buyer refund?

Ontario's refund is for first-time homebuyers who are at least 18, live in the home within nine months and apply within 18 months. The definition of a first-time buyer has its own conditions, so ask your lawyer to confirm you qualify.