Most buyers know about the down payment. Fewer are fully prepared for what comes alongside it. Closing costs in Ontario are real, they’re significant, and they vary depending on where you’re buying, what you’re buying, and whether you qualify for any rebates.
Here’s every cost to budget for — explained clearly, with no surprises on closing day.
Your real estate lawyer calculates all closing costs and presents them on a closing statement before your closing date. You’ll know the exact number and be asked to have funds ready before the keys change hands.
Land Transfer Tax
Land transfer tax is the largest closing cost for most Ontario buyers. It’s paid to the provincial government on every property purchase. The amount is calculated on a sliding scale based on the purchase price.
Ontario Land Transfer Tax
Paid on every property purchase in Ontario. The tax uses a graduated rate structure — the percentage increases as the purchase price increases. Your lawyer calculates the exact amount based on your purchase price.
First-time buyers may be eligible for a rebate of up to $4,000 on the Ontario land transfer tax. This can fully offset the tax on lower-priced properties and reduce it on higher-priced ones. See our First-Time Buyer Incentives guide for full details on eligibility and how to claim it.
Toronto Municipal Land Transfer Tax
If you’re buying within the City of Toronto boundaries, you pay a second land transfer tax on top of the provincial one. Toronto is currently the only municipality in Ontario that charges this additional tax, which is why closing costs in Toronto are higher than in surrounding 905 municipalities.
The municipal tax mirrors the provincial structure. First-time buyers in Toronto may be eligible for a rebate of up to $4,475 on the municipal tax. Combined with the provincial rebate, qualifying first-time buyers in Toronto can receive up to $8,475 in total land transfer tax savings.
Legal Fees & Title Insurance
Real Estate Legal Fees
A real estate lawyer is required for every property purchase in Ontario. Legal fees cover the lawyer’s professional time reviewing the APS, conducting the title search, preparing closing documents, and handling the financial transaction on closing day. Disbursements — out-of-pocket costs your lawyer incurs on your behalf — are typically charged separately and include title search fees, registration fees, and courier costs.
Legal fees vary by lawyer, transaction complexity, and property type. Average fees in the GTA typically land in the range of $1,800–$2,500+, plus disbursements. Condos typically have higher legal costs due to status certificate review. Get a quote from your lawyer before closing so you know what to expect. Ask specifically whether the quoted amount includes disbursements or not.
Title insurance is typically arranged by your lawyer and included in the legal costs. It protects you and your lender against issues with the title that may not be discovered during the title search — including survey errors, zoning violations, or fraudulent prior transactions. Most lenders require it.
Other Closing Costs to Budget For
Home Inspection
A home inspection is not paid at closing — it’s paid at the time of the inspection, typically during your conditional period. It’s included here because it’s part of your total buying cost and should be in your budget. Prices vary depending on the size and type of property. For a detached home in the GTA, budget a few hours of your time as well as the fee — attending in person is valuable.
Home Insurance
Your lender requires proof of home insurance before releasing mortgage funds. You need to arrange this before your closing date. For condos, the condo corporation carries building insurance — you need contents insurance and liability coverage. For freehold homes, you need a full property and contents policy. Premiums vary by property type, location, and coverage level.
Property Tax & Utility Adjustments
On closing day, your lawyer adjusts for any property taxes or prepaid utilities the seller has already paid beyond the closing date. If the seller has paid property taxes through the end of the year and you close in July, you’ll owe them a reimbursement for that portion. These adjustments are calculated precisely by your lawyer and appear on the closing statement.
Moving Costs
Moving costs aren’t a legal closing cost but they’re a real expense that buyers often underestimate. Book your movers well in advance of closing — particularly for end-of-month closing dates when moving companies are in high demand. Confirm your booking once the closing date is firm.
New Construction — Additional Costs
Buyers purchasing new construction in Ontario face additional closing costs that don’t apply to resale homes. These typically include HST (though the new home HST rebate partially offsets this — see our guide on Ontario’s new home HST rebate), development charges, utility connection fees, and Tarion warranty enrollment fees. New construction closing costs can be substantially higher than resale. Review your purchase agreement carefully with your lawyer before signing.
Budget Rule of Thumb
Budgeting 1.5% to 4% of your purchase price for closing costs — beyond your down payment — is a reasonable starting point for most GTA buyers. Toronto purchases sit higher in that range due to the municipal land transfer tax. First-time buyers who qualify for both LTT rebates see meaningfully lower closing costs.
To get a quick estimate of your land transfer tax and closing costs based on your specific purchase price and situation, use the closing cost calculator on our website. It’s a useful starting point — but always run the final numbers with your lawyer before closing day, as your specific situation may include costs the calculator doesn’t capture.
Your lawyer will prepare the exact closing statement in advance of your closing date, so there are no surprises on the day itself.
Legal disclaimer: Closing costs vary by transaction, property type, location, and individual circumstances. The information in this blog is for general educational purposes only and does not constitute legal or financial advice. Always consult with a qualified real estate lawyer for a precise calculation of costs specific to your purchase. Land transfer tax rates and rebate eligibility rules are subject to change — confirm current rules with your lawyer.
Frequently Asked Questions
How much are closing costs in Ontario?
Closing costs in Ontario typically range from 1.5% to 4% of the purchase price, depending on location, property type, and rebate eligibility. The largest single cost is usually land transfer tax. Toronto purchases are higher due to the municipal LTT. First-time buyers who qualify for both land transfer tax rebates see meaningfully lower closing costs. Your lawyer will give you a precise number before closing.
Do buyers in Toronto pay two land transfer taxes?
Yes. Buyers purchasing within the City of Toronto pay both the provincial Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax. Toronto is currently the only municipality in Ontario that charges the additional municipal tax. First-time buyers may be eligible for rebates on both — up to $4,000 provincial and $4,475 municipal.
When do I pay closing costs in Ontario?
Your real estate lawyer prepares a closing statement detailing every amount owing — land transfer tax, legal fees, title insurance, adjustments, and other items. Your lawyer will advise you of the total and the deadline to have funds in trust. Typically you need to wire funds to your lawyer a day or two before the closing date. The mortgage funds come from your lender; the remaining balance (closing costs and any additional down payment) comes from you.
Are closing costs higher on new construction in Ontario?
Yes, typically significantly higher. New construction closing costs include HST (partially offset by the new home HST rebate), development charges, utility connection fees, and Tarion warranty enrollment. Builders are also known to include various adjustments and charges that don’t exist in resale purchases. Review your purchase agreement carefully with a real estate lawyer before signing.
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