Irina Marchenkova · RE/MAX Realtron Realty
How much are closing costs in Ontario? Land transfer tax, legal fees, title insurance and adjustments, with real examples and first-time buyer refunds.
By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Last updated October 2026
Your down payment isn’t the only cash you need to buy a home in Ontario. Closing costs, the taxes, fees and adjustments due on or before closing day, typically add 1.5% to 4% of the purchase price, and much more in the City of Toronto, where you pay two land transfer taxes. Here is what to budget for, with real numbers.
| Cost | Typical amount | Notes |
|---|---|---|
| Ontario land transfer tax | See table below | Paid on every purchase in Ontario |
| Toronto municipal land transfer tax | About the same as Ontario’s | Only for homes in the City of Toronto |
| Legal fees and disbursements | About $1,500–$3,000 | Your real estate lawyer handles the transfer, title search and funds |
| Title insurance | About $250–$500 | Protects against title problems and fraud |
| Home inspection | About $400–$700 | Paid before you firm up the deal |
| Appraisal | About $300–$500 | Often covered by the lender |
| Property tax and utility adjustments | Varies | You repay the seller for any prepaid days after closing |
| Sales tax on mortgage insurance | 8% of the premium | Ontario charges PST on mortgage default insurance; it must be paid in cash at closing |
| Moving and setup | Varies | Movers, utility hook-ups, basic repairs |
Ontario’s land transfer tax is charged in brackets on the purchase price of a home with one or two single-family residences:
| Portion of the price | Ontario 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 | 2.5% |
The City of Toronto charges its own municipal land transfer tax using the same brackets, with higher rates on homes above $3 million. Use my land transfer tax calculator to get your exact amount.
| Outside Toronto (e.g. Markham) | City of Toronto | |
|---|---|---|
| Ontario land transfer tax | $12,475 | $12,475 |
| Toronto municipal land transfer tax | – | $12,475 |
| First-time buyer refunds | up to –$4,000 | up to –$8,475 |
| Land transfer tax for a first-time buyer | about $8,475 | about $16,475 |
| Legal fees, title insurance, inspection (estimate) | about $3,000 | about $3,000 |
Estimates for illustration. Your lawyer will confirm the exact figures in your statement of adjustments.
To see how these costs appear on your final paperwork, read my guide to the statement of adjustments. Questions about your purchase? Get in touch.
Typically 1.5% to 4% of the purchase price, and more in the City of Toronto because of the second (municipal) land transfer tax.
The buyer pays land transfer tax and their own legal fees. Sellers pay their own legal fees, real estate commission and mortgage discharge costs.
Generally no. Lenders expect you to have closing costs in cash, usually about 1.5% of the price, in addition to your down payment.
They pay it, but can get a refund of up to $4,000 from Ontario and, in Toronto, up to $4,475 from the City, if they meet the first-time buyer rules.
General information, not legal or tax advice. Confirm your costs with your real estate lawyer.
Trusted, independent sources I recommend to my clients (links open in a new tab):
Compare neighbourhoods: Most affordable areas · Best for families · Best for downsizing · First-time buyer guide · Downsizing guide · All neighbourhood guides
