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Comprehensive Guide · FSRA #13737

Closing costs in Ontario —
the full breakdown
for 2026.

Beyond your down payment, budget 1.5%–4% of the purchase price. The biggest line is land transfer tax — and in Toronto you pay it twice.

What You'll Learn

Four things every Ontario
buyer must know.

The range is 1.5–4% — and the gap between those numbers is almost entirely where you buy.

Total budget

Budget 1.5–4% of purchase price

Beyond your down payment, most closing costs must be paid in cash at closing. Where you buy matters — inside Toronto, land transfer tax strikes twice, pushing costs toward 4%.

First-time relief

Up to $8,475 in rebates

First-time buyers claim up to $4,000 off Ontario LTT and $4,475 off Toronto's matching tax. Your lawyer handles both at closing — no separate filing needed.

PST surprise

8% PST on CMHC insurance

Put less than 20% down and Ontario levies 8% PST on your mortgage insurance premium — in cash, at closing. On a $20,000 premium that's $1,600 most buyers miss.

Legal & title

Lawyer and title are non-negotiable

Every Ontario purchase requires a real-estate lawyer ($1,500–$2,500) and title insurance ($300–$500). Fixed, required costs at every closing, regardless of price.

The Process

Budget right,
close without
surprises.

Knowing your full cash-to-close before you offer is the difference between a smooth close and a scramble at the lawyer's office.

01

Calculate your real total before you offer

Run our closing costs calculator with your exact price, municipality, and first-time-buyer status. You'll see the full cash-to-close: land transfer tax, PST on insurance, legal fees, and title — before you write a single dollar on an offer.

02

Claim every rebate at closing

Your lawyer claims the Ontario LTT rebate (up to $4,000) and the Toronto MLTT rebate (up to $4,475) at closing on your behalf. Confirm eligibility early — you must never have owned a home anywhere in the world.

03

Close with zero surprises

We give you the complete cash-to-close — down payment, closing costs, PST-on-insurance, condo status certificate if applicable — before you offer. No scramble at the lawyer's office.

Your Situation

Is this guide for you?

Tap any situation below to see how closing costs apply to your purchase.

If you’re…

You're buying your first home in Ontario

You qualify for the most valuable closing-cost relief available: up to $4,000 off Ontario LTT and $4,475 off Toronto's matching tax — combined, that can erase land transfer tax entirely on a modestly priced home. We make sure both rebates are claimed.

Start my pre-approval
If you’re…

You're buying inside the City of Toronto

Toronto levies its own municipal land transfer tax on top of the provincial rate. On an $800,000 home that's roughly $12,475 + $12,475 = $24,950 before rebates — nearly double what the same purchase costs just outside city limits.

Calculate Toronto LTT
If you’re…

You're putting less than 20% down

Your CMHC, Sagen, or Canada Guaranty insurance premium is financed into your mortgage — but Ontario's 8% PST on that premium is cash-only at closing. We include that line in your cash-to-close estimate from the start so it's never a surprise.

Calculate my closing costs
If you’re…

You're buying an $800,000+ home in Toronto

Land transfer tax alone can exceed $25,000 inside Toronto on an $800,000 purchase. Add legal fees, title insurance, and the home inspection and total cash-to-close routinely hits $27,000–$30,000+. Budget it early.

Talk to an advisor
If you’re…

You're buying a condo

Condo purchases add a status certificate review (about $100). Your lawyer reviews the condo corporation's financial health, reserve fund, and any litigation before you close. A weak certificate is grounds to renegotiate — or walk.

Get pre-approved
If you’re…

You want to reduce what you pay at closing

Negotiable: shop your lawyer's flat fee, ask the lender to cover the appraisal (standard on insured deals), and claim every first-time-buyer rebate. Fixed: land transfer tax, registration fees, and PST on insurance. We flag every avoidable dollar before you close.

See my savings opportunities
The Numbers

Ontario LTT rates —
and a worked example.

An $800,000 Toronto purchase. Repeat buyer, 20% down — so no PST on insurance. Legal and inspection figures are typical amounts.

Ontario Land Transfer Tax

Tiered rates on the purchase price — 2026

Ontario land transfer tax rates by purchase price tier, 2026
Portion of priceRate
First $55,0000.5%
$55,000 – $250,0001.0%
$250,000 – $400,0001.5%
$400,000 – $2,000,0002.0%
Over $2,000,0002.5%

On an $800,000 home the provincial LTT works out to about $12,475. Toronto adds a matching tax.

$800,000 Toronto Purchase

Cash-to-close, repeat buyer, 20% down

Illustrative closing costs for an $800,000 Toronto purchase with 20% down payment
Ontario land transfer tax$12,475
Toronto municipal LTT$12,475
Legal fees + disbursements$2,000
Title insurance$400
Home inspection$500
Appraisal (lender-covered)$0
Estimated total≈ $27,850
Total cash-to-close (Toronto, $800K, 20% down)
≈ $27,850
Outside Toronto, drop the municipal LTT — the same home closes for roughly $15,400. First-time buyers subtract up to $8,475 in rebates.
Calculate my total

Illustrative only — legal, title, and inspection figures are typical Ontario amounts, not quotes. Your actual closing costs depend on your purchase price, municipality, lender, and first-time-buyer status. Run your exact numbers.

FAQ

Common questions,
clear answers.

LTT rates, first-time rebates, PST on CMHC, and the full cash-to-close — answered plainly.

How much are closing costs in Ontario?

Budget 1.5% to 4% of the purchase price. The largest component is land transfer tax; the rest is legal fees, title insurance, a home inspection, an appraisal (often lender-paid), and adjustments for prepaid property tax and utilities. On an $800,000 Toronto home, total closing costs commonly land around $28,000 because Toronto charges municipal land transfer tax on top of the provincial one.

What is Ontario land transfer tax in 2026?

A tiered tax paid at closing: 0.5% on the first $55,000, 1.0% to $250,000, 1.5% to $400,000, 2.0% to $2,000,000, and 2.5% above $2M (for a home with one or two single-family residences). On an $800,000 home that's about $12,475 provincially. Toronto adds a matching municipal land transfer tax, roughly doubling the bill inside the city. Use our Ontario land transfer tax calculator.

Do first-time buyers pay closing costs in Ontario?

Yes, but they get relief on the biggest one. First-time buyers can claim up to $4,000 off the Ontario land transfer tax, plus up to $4,475 off the Toronto municipal LTT — together that can erase the tax entirely on a modestly priced home. All other closing costs (legal, title, inspection) still apply.

Are legal fees part of closing costs?

Yes. A real-estate lawyer typically charges $1,500–$2,500 in Ontario including disbursements (title search, registration, software charges). The lawyer registers your mortgage and title, handles the trust ledger, and wires funds on closing day. It's a required cost on every purchase.

Is there tax on CMHC mortgage insurance at closing in Ontario?

Yes. While the CMHC, Sagen, or Canada Guaranty premium itself is financed into your mortgage, Ontario charges 8% PST on the premium, and that PST must be paid in cash at closing — it can't be added to the loan. On a $20,000 premium that's a $1,600 closing-day cost many buyers forget to budget for.

What closing costs can I reduce or avoid?

Some are negotiable or avoidable: shop your lawyer's flat fee, skip a separate appraisal when the lender covers it, and claim every first-time-buyer rebate you're eligible for. Land transfer tax, registration, and PST on insurance are fixed by statute. A broker makes sure you've budgeted the full cash-to-close so nothing is a surprise at the lawyer's office.

The Mortgage Squad Guarantee

We’ll try to beat your rate.
If we can’t, we pay you $500.¹

¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply

Find a specialist in your city

Closing costs vary by municipality — land transfer tax alone changes dramatically the moment you cross into Toronto. Your advisor knows your local numbers, the exact rebates you qualify for, and the full cash-to-close before you write a single offer.