Closing Costs in Ontario: What to Budget Beyond Your Down Payment

The short answer

Set aside roughly 1.5% to 4% of the purchase price, in cash, on top of your down payment. Here is what goes into that number.

1. Ontario land transfer tax

Every buyer in Ontario pays provincial land transfer tax on closing. It is calculated in brackets, so the rate climbs as the price goes up. First time buyers can receive a refund of up to $4,000.

2. Toronto municipal land transfer tax (North York buyers)

If you are buying in the City of Toronto, which includes North York, you pay a second land transfer tax to the city. First time buyers can get a rebate of up to $4,475. Markham, Vaughan, Richmond Hill and Thornhill are outside Toronto, so this tax does not apply there. On the same price, that difference alone can be thousands of dollars.

3. Legal fees and title insurance

Your real estate lawyer handles the title search, mortgage documents and the transfer. Fees plus disbursements typically land in the $1,500 to $2,500 range, with title insurance on top. Ask for an all in quote up front.

4. Home inspection

Usually $400 to $700 for a house, depending on size. It is the best money you will spend on the purchase.

5. Adjustments

If the seller prepaid property taxes, utilities or condo fees past your closing date, you reimburse them for those days. Your lawyer calculates this on the statement of adjustments.

6. Mortgage insurance tax (if you put less than 20% down)

The CMHC premium itself is added to your mortgage, but Ontario charges 8% provincial sales tax on that premium, and that tax must be paid in cash on closing. Many buyers miss this one.

7. Moving and setup

Movers, utility hookups, a few days of overlap if you are leaving a rental, and the things you will want in week one.

Every purchase is different. Before you make an offer, I will walk you through an estimate for that specific home and connect you with a lawyer and mortgage specialist who can confirm the exact numbers. Figures last reviewed October 2026.

Common questions about closing costs

How much is land transfer tax on a $1 million home in Ontario?

About $16,475 in Ontario land transfer tax on a $1,000,000 home in Markham, Vaughan, Richmond Hill or Thornhill. A first time buyer would get up to $4,000 of that back. In North York, you also pay Toronto's municipal land transfer tax, which roughly doubles the total before rebates.

Do I pay Toronto land transfer tax if I buy in Thornhill or Markham?

No. Thornhill, Markham, Vaughan and Richmond Hill are outside the City of Toronto, so only the Ontario land transfer tax applies.

Can closing costs be added to my mortgage?

Generally no. Land transfer tax, legal fees and the tax on mortgage insurance are paid in cash on or before closing. Only the CMHC premium itself is added to the mortgage.