Closing

Common Closing Costs When Purchasing in Ontario

Closing costs are the part of a purchase budget most often underestimated. They are separate from the down payment, they are due at closing, and they are almost always larger than buyers first assume.

By Leah Kadikoff, Mortgage Agent Level 1

Last reviewed: September 2026

A planning range, not a quote

As a general planning reference, budgeting roughly 1.5% to 4% of the purchase price for closing costs is a reasonable starting point in Ontario. The actual figure depends on the property, its location, the transaction structure and your own lawyer's fees. Treat the range as a budgeting tool, never as a quote.

Land transfer tax

Ontario charges provincial land transfer tax on residential purchases, calculated on a graduated scale against the purchase price. Properties within the City of Toronto are also subject to a separate municipal land transfer tax, which roughly doubles this line for Toronto buyers.

Eligible first-time buyers may claim rebates against provincial and, in Toronto, municipal land transfer tax. Eligibility rules are specific, so confirm them with your lawyer before relying on the rebate in a budget.

Legal fees and disbursements

Your lawyer handles title searches, registration, the exchange of funds and the statement of adjustments. The bill combines professional fees with disbursements — the third-party costs incurred on your behalf — plus applicable tax. Ask for an estimate covering both parts rather than the fee alone.

Title insurance

A one-time premium, generally arranged through your lawyer. Lenders commonly require it, and it protects against certain title-related risks.

Adjustments

If the seller has prepaid property taxes, utilities or condo fees beyond the closing date, you reimburse the prepaid portion at closing. These adjustments appear on the lawyer's statement and can add up on a closing that falls early in a tax or fee period.

Other common items

Home inspection, where you arrange one — usually paid before closing rather than at it.
Appraisal, where the lender requires one and does not cover the cost.
Property insurance, which must be in place effective the closing date.
Mortgage default insurance premium, where applicable — usually added to the mortgage, though the provincial sales tax on it is payable at closing.
Status certificate for a condominium purchase.
Moving costs, utility connections and any immediate work on the property.

Build it into the plan early

Closing costs generally cannot be added to the mortgage, so they need to be available in cash on top of the down payment. Use the purchase and down payment calculator to see the price, down payment and closing-cost planning range together before you set your budget.

This article is general information only. It is not a mortgage approval, a rate quote, or individualized financial, tax or legal advice. Terms, availability and eligibility depend on the borrower, the property and the lender.

FAQs

Direct answers

How much should I budget for closing costs in Ontario?

As a general planning reference, roughly 1.5% to 4% of the purchase price. The actual amount depends on the property, its location, the transaction and your lawyer's fees, so treat the range as a planning tool rather than a quote.

Can closing costs be added to my mortgage?

Generally no. Closing costs are usually payable in cash at closing, separate from and in addition to the down payment. This is why they belong in the budget from the beginning.

Do first-time buyers pay land transfer tax in Ontario?

Land transfer tax applies, but eligible first-time buyers may claim rebates against the provincial amount and, for Toronto purchases, the municipal amount. Eligibility rules are specific and should be confirmed with your lawyer.

Why are closing costs higher in Toronto?

Purchases within the City of Toronto are subject to a municipal land transfer tax in addition to the provincial one, which meaningfully increases the total for a comparable purchase price elsewhere in Ontario.

Related services

Run the numbers

Have a mortgage question?

Share a few details and Leah will follow up personally to help you understand your next step.

Keep reading

Related guides

First-time buyers