Ontario Home Closing Costs Guide
A practical checklist of common costs to consider when buying a home in Ontario.
Ontario land transfer tax (2026)
The biggest closing cost for most buyers. Ontario's rates on the purchase price:
| Price slice | Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 – $250,000 | 1.0% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Buying in Toronto? The municipal land transfer tax mirrors the provincial schedule — you pay it twice. Eligible first-time buyers can claim a provincial refund of up to $4,000 (plus Toronto's own first-time rebate).
Example: $700,000 home
| Outside Toronto | In Toronto | |
|---|---|---|
| Provincial LTT | $10,475 | $10,475 |
| Municipal LTT | — | $10,475 |
| Total land transfer tax | $10,475 | $20,950 |
Math: 0.5% × $55,000 + 1.0% × $195,000 + 1.5% × $150,000 + 2.0% × $300,000 = $10,475.
Other closing costs to budget
- Legal fees + disbursements: roughly $1,500–$2,500.
- Title insurance: a few hundred dollars — standard practice.
- Home inspection: roughly $400–$600 (optional but wise for resale).
- Adjustments: prepaid property tax, utilities and condo fees are split with the seller on closing day.
- Moving and immediate repairs: easy to forget, painful to fund from credit.
Rule of thumb: budget 1.5%–4% of the purchase price for closing costs on top of your down payment — the high end if you're buying in Toronto.
Key points
- Land transfer tax is usually the largest closing cost; Toronto buyers pay it twice.
- First-time buyers: claim the provincial refund (up to $4,000).
- Budget 1.5%–4% of the price beyond your down payment.
Related tools
Ontario Salary Calculator · TFSA Calculator · RRSP Calculator · Mortgage Calculator
Full cash-needed example: $700,000 Toronto first home (20% down)
Land transfer tax is only one line. Here is the full cash picture for a $700,000 Toronto purchase with 20% down:
| Item | Amount |
|---|---|
| Down payment (20%) | $140,000 |
| Provincial land transfer tax | $10,475 |
| Toronto municipal land transfer tax | $10,475 |
| Legal fees + disbursements | ≈ $2,000 |
| Title insurance | ≈ $400 |
| Home inspection | ≈ $500 |
| Adjustments (prepaid tax, utilities) | ≈ $2,000 |
| Moving | ≈ $1,500 |
| Total closing costs | ≈ $27,350 |
| Total cash needed | ≈ $167,350 |
That is nearly 24% of the purchase price in cash — the "20% down" everyone quotes is only part of the story. Eligible first-time buyers can claim the provincial refund of up to $4,000 plus Toronto's own first-time buyer rebate, which trims the land transfer tax lines. With less than 20% down the math shifts: a 10% down payment ($70,000) means a larger mortgage plus CMHC insurance premiums on top of these closing costs.
FAQ
Can I roll closing costs into the mortgage?
Generally no — lenders finance the purchase price minus down payment, not your legal bill or moving truck. Land transfer tax, legal fees and adjustments come from your cash. Plan for them separately from the down payment.
Do I really pay land transfer tax twice on a Toronto condo?
Yes. Toronto charges its own municipal land transfer tax mirroring the provincial schedule, so a $700,000 purchase means about $10,475 provincial plus $10,475 municipal. First-time buyer rebates exist for both — claim them.
Can I roll closing costs into my mortgage?
Generally no — lenders expect closing costs paid from your own funds, on top of the down payment. The land transfer tax for first-time buyers is the main exception via the refund, which comes after closing.
Are these official CRA calculations?
No. This site is an educational resource. Use CRA tools, payroll tables and your own CRA account for official information.