Buyer’s guide

Closing Costs in Ontario: The Complete Buyer’s Breakdown

Closing costs are the cash you need on top of your down payment — and in Toronto they are larger than anywhere else in Canada because of the second land transfer tax. Budget 3–4% of the purchase price inside the City of Toronto and 1.5–2.5% in the 905. Here is every line item, who gets paid, and when.

Updated October 22, 2026 · TORE.ca editorial

1. 1.What closing costs are, and the one-line budget

   Closing costs are everything you pay to complete the purchase that is not the price of the home itself. They are due on or just before closing day, in cash — a lender will not finance them, and a bank draft to your lawyer is the usual mechanism. Most are one-time; a few (property tax, condo fees) are adjustments for periods the seller has already paid.

   The quick budget for a Toronto purchase: land transfer tax (two of them), legal fees and disbursements, title insurance, adjustments, plus mortgage-related costs if your down payment is under 20%. The quick budget for Mississauga, Vaughan, Markham or anywhere else in the 905 is the same list minus the Toronto municipal tax — which is why an identical-price home across Steeles Avenue can close $15,000–$25,000 cheaper.

   • City of Toronto, resale, 20%+ down: roughly 3–4% of price.
   • City of Toronto, resale, under 20% down: add the PST on the mortgage-insurance premium (see below).
   • 905 municipalities: roughly 1.5–2.5% of price.
   • New construction anywhere: add HST considerations, development-charge caps and the Tarion fee (see section 7).

2. 2.Land transfer tax — the biggest line, and Toronto pays it twice

   Ontario charges land transfer tax on a graduated scale: 0.5% on the first $55,000, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, 2% from $400,000 to $2,000,000, and 2.5% above $2,000,000 for homes with one or two single-family residences. The brackets stack, so a $1,000,000 home pays $16,475 — not 2% of the whole price.

   Inside the City of Toronto, the Municipal Land Transfer Tax (MLTT) applies on top, mirroring the provincial brackets up to $3 million and then climbing: 3.5% from $3M to $4M, 4.5% to $5M, 5.5% to $10M, 6.5% to $20M and 7.5% above that (effective January 1, 2024). The practical effect for most buyers is that the land transfer bill doubles: $32,950 on a $1,000,000 home, $52,950 on $1,500,000.

   First-time buyer rebates

   If you (and your spouse, while your spouse) have never owned a home anywhere in the world, Ontario refunds up to $4,000 and Toronto up to $4,475 — $8,475 combined, claimed by your lawyer on the closing statement. The provincial rebate wipes the tax out entirely on homes up to $368,000; the Toronto rebate covers purchases up to roughly $400,000. You must occupy the home as your principal residence within nine months of closing.

   • $600,000 condo, Toronto, first-time buyer: $16,950 − $8,475 = $8,475.
   • $800,000 home, Toronto, repeat buyer: $24,950. Same home in Mississauga: $12,475.
   • $1,200,000 home, Toronto, repeat buyer: $40,950. Same home in Vaughan: $20,475.

   Run your exact number on the TORE.ca land transfer tax calculator — it applies both taxes, the luxury tiers and both rebates.

3. 3.Legal fees and disbursements

   Ontario requires a lawyer to close a real-estate purchase — they search title, register the deed and mortgage, hold the funds in trust, and prepare the statement of adjustments. Toronto fees for a straightforward resale purchase run about $1,200–$2,500 plus HST, and most lawyers quote a flat fee. Disbursements — the costs the lawyer pays on your behalf — add roughly $300–$600: title search, registration of the transfer ($80–$90 per document at the Land Registry Office), execution searches, courier and software fees.

   Ask for an all-in written quote that separates fee, disbursements and title insurance. Suspiciously low headline fees often reappear as inflated disbursements. If you are buying with a mortgage, confirm the quote includes registering the mortgage — some firms bill it separately.

4. 4.Title insurance

   A one-time premium — typically $300–$600 for a Toronto purchase, scaling with price — that protects you (and your lender) against title defects, survey problems, fraud and some municipal work orders. Virtually every Ontario lender requires it, and most buyers take an owner policy at the same time because the marginal cost is small. It is arranged by your lawyer and paid on closing. Unlike home insurance, it is paid once and lasts as long as you own the property.

5. 5.Adjustments: property tax, condo fees, utilities and rent

   The statement of adjustments settles anything the seller has prepaid past closing day or that you will be billed for retroactively. The common ones:

   • Property tax: if the seller paid the full year and you close in June, you reimburse roughly half. Toronto bills in instalments, so the adjustment can go either way. On a $1,000,000 Toronto home the annual tax is roughly $7,200 (2025 residential rate about 0.72% of MPAC assessed value), so a mid-year adjustment is a few thousand dollars.
   • Condo fees: the seller’s prepaid portion of the month you close.
   • Utilities and fuel oil: rare in the city; relevant for rural and cottage purchases where a tank is left part-full.
   • Rental income and deposits: if you are buying a tenanted property, the seller credits you the tenant’s last-month deposit plus interest and any rent received for days after closing.

   Adjustments are reconciled to the day; your lawyer will show you the exact figures a day or two before closing. Budget $1,500–$4,000 for a typical Toronto resale.

6. 6.Mortgage-related costs

   Mortgage default insurance and its PST

   With less than 20% down, your mortgage must be insured (CMHC, Sagen or Canada Guaranty). The premium itself — 2.80% to 4.00% of the loan depending on your down payment — is added to the mortgage, so it is not a closing cost in cash. But Ontario charges 8% provincial sales tax on that premium, and the PST is payable on closing. On a $700,000 condo with 5% down the premium is about $26,600 and the PST about $2,130.

   Appraisal

   Lenders often order an appraisal on uninsured mortgages, unusual properties or when the price looks high for the area. $300–$500, sometimes waived by the lender as a promotion.

   Interest adjustment

   If your mortgage funds on the 14th and your first regular payment is the 1st, the lender collects the interest for the gap on closing — a few hundred dollars. Not a fee, just timing.

   Mortgage broker fees

   For prime (A-lender) mortgages the lender pays the broker; you pay nothing. Alternative and private lenders charge lender and broker fees, typically 1–2% of the loan each, deducted from the advance.

7. 7.New construction: HST, development charges, Tarion and occupancy

   New homes carry costs resale buyers never see. HST (13%) applies to the price; builders usually quote prices with the federal and provincial rebates already credited, on condition you occupy the home as your principal residence — if you buy to rent out, you pay the HST on closing and claim the rental rebate afterward. For agreements signed on or after May 27, 2025, first-time buyers get a rebate of 100% of the federal GST portion on a new home up to $1 million, phasing out to zero at $1.5 million (the First-Time Home Buyers’ GST Rebate, CRA); check whether your builder’s price already reflects it.

   • Development charges, parkland levies and education levies: the purchase agreement often passes these to the buyer; negotiate a cap (commonly $5,000–$15,000 for a condo) before you sign.
   • Tarion warranty enrolment: paid by the builder but typically charged back; about $1,000–$2,000 depending on price.
   • Utility connections and meter installations: $500–$1,500 in many condo agreements.
   • Occupancy fees: for condos, you take possession and pay a monthly occupancy fee (interest on the unpaid balance, estimated taxes and fees) until the building registers and your mortgage funds — this can run for months.

   Pre-construction agreements are long and builder-friendly. Have a lawyer review it inside the 10-day cooling-off period, which is your only unconditional exit.

8. 8.Costs before closing: inspection, deposit, status certificate

   • Home inspection: $450–$800 plus HST in Toronto for a house; condo inspections are cheaper. Paid when the inspection happens, usually during a conditional period or — in competitive situations — before you offer.
   • Deposit: not a cost, but cash you need immediately. Toronto freehold offers commonly carry a deposit of 5% of the price, due within 24 hours of acceptance by bank draft or wire. It is credited against your down payment on closing.
   • Status certificate (condos): the seller usually pays the $100 statutory fee; your lawyer’s review of it (reserve fund, special assessments, lawsuits) is part of the legal fee.
   • Survey: rarely needed if you have title insurance, but a lender may ask for one on a rural or unusual lot. $1,500–$3,000.

9. 9.After closing: moving, utilities and the costs people forget

   • Movers: $800–$2,500 for a local Toronto move; more for a house, less for a condo with a freight elevator you can book.
   • Condo move-in fees and elevator deposits: many buildings charge $100–$300 (often refundable).
   • Utility set-up: Toronto Hydro and Enbridge usually require no deposit for homeowners with credit history; internet installations are $50–$100.
   • Locks, cleaning, immediate repairs: budget $500–$1,500 the first week.
   • Home insurance: not a closing cost, but your lender needs proof of a policy in place before funding. Expect $1,200–$2,500 a year for a Toronto house, $300–$600 for a condo.

10. 10.Two worked examples

    $800,000 condo in downtown Toronto, first-time buyer, 10% down

    • Ontario LTT $12,475 + Toronto MLTT $12,475 − rebates $8,475 = $16,475
    • Legal fee and disbursements ≈ $2,000
    • Title insurance ≈ $400
    • PST on CMHC premium (3.10% of $720,000 = $22,320; 8% PST) ≈ $1,790
    • Adjustments (condo fee, property tax) ≈ $1,200
    • Inspection $400 · Appraisal $0 (insured) · Interest adjustment ≈ $300
    • Total cash on closing ≈ $22,600, about 2.8% of price — plus the $80,000 down payment.

    $1,200,000 semi-detached in East York, repeat buyer, 20% down

    • Ontario LTT $20,475 + Toronto MLTT $20,475 = $40,950
    • Legal fee and disbursements ≈ $2,200
    • Title insurance ≈ $500
    • Appraisal $400 · Inspection $700 · Interest adjustment ≈ $500
    • Adjustments (property tax) ≈ $2,500
    • Total cash on closing ≈ $47,750, about 4.0% of price — plus the $240,000 down payment.

    The same East York home bought in Pickering or Vaughan would cost $20,475 less to close. For buyers at the edge of their budget, the Toronto tax is often the deciding factor between a semi inside the city and a detached just outside it.

11. 11.Closing-cost checklist

    • Land transfer tax (Ontario) — and Toronto MLTT if inside the city; rebates claimed if first-time.
    • Legal fee + disbursements (written quote).
    • Title insurance.
    • Statement of adjustments: property tax, condo fees, rent/deposits.
    • PST on mortgage default insurance premium (if under 20% down).
    • Appraisal and interest adjustment (ask your lender).
    • Inspection, deposit timing, status certificate review (before closing).
    • New construction only: HST treatment, development-charge cap, Tarion, occupancy fees.
    • Moving, insurance proof, utilities, first-week repairs.

Rules cited: Ontario Land Transfer Tax Act and first-time buyer refund (Ontario Ministry of Finance); City of Toronto Municipal Land Transfer Tax By-law 1423-2023 (graduated rates effective January 1, 2024); CMHC premium schedule; Retail Sales Tax Act (8% PST on insurance premiums); Ontario Land Registry fee schedule; Tarion Addendum and 10-day rescission period (Condominium Act); City of Toronto 2025 property tax rates; CRA First-Time Home Buyers’ GST/HST Rebate (agreements on/after May 27, 2025). Fee ranges are typical Toronto market figures and vary by firm and property — obtain written quotes.