Understanding Closing Costs in Ontario: A 2026 Breakdown of Every Fee, Tax, and Charge Buyers Need to Budget For

One of the most common surprises for Ontario homebuyers — particularly first-time buyers — is the gap between the purchase price they negotiated and the total amount they actually need to close. Closing costs in Ontario typically add 1.5 to 4 percent of the purchase price on top of the down payment, which means a buyer purchasing a $700,000 home should budget an additional $10,500 to $28,000 in fees, taxes, and other charges beyond their down payment.

This guide provides a detailed breakdown of every closing cost Ontario buyers need to plan for in 2026, including current rates, exemptions, and practical tips for managing these expenses.

Ontario Land Transfer Tax

The Ontario Land Transfer Tax is the single largest closing cost for most buyers and is paid to the provincial government at the time of closing. The tax is calculated on a graduated scale based on the purchase price:

• 0.5 percent on the first $55,000
• 1.0 percent on the amount from $55,000 to $250,000
• 1.5 percent on the amount from $250,000 to $400,000
• 2.0 percent on the amount from $400,000 to $2,000,000
• 2.5 percent on the amount above $2,000,000

For a $700,000 home, the Ontario Land Transfer Tax works out to $11,475. For a $1,000,000 home, it is $17,475.

First-time buyer rebate: Ontario offers a land transfer tax rebate of up to $4,000 for first-time homebuyers. To qualify, you must be at least 18 years old, a Canadian citizen or permanent resident, and have never owned a home anywhere in the world. Your spouse cannot have owned a home during your relationship. The $4,000 rebate effectively covers the full LTT on homes up to $368,333.

Toronto Municipal Land Transfer Tax

Buyers purchasing property within the City of Toronto face an additional municipal land transfer tax on top of the provincial tax. The Toronto MLTT has its own graduated scale:

• 0.5 percent on the first $55,000
• 1.0 percent on the amount from $55,000 to $250,000
• 1.5 percent on the amount from $250,000 to $400,000
• 2.0 percent on the amount from $400,000 to $2,000,000
• 2.5 percent on the amount above $2,000,000

This effectively doubles the land transfer tax for Toronto buyers. On a $700,000 Toronto home, the combined provincial and municipal LTT totals $22,950. On a $1,000,000 home, the combined total is $34,950.

Toronto first-time buyer rebate: First-time buyers in Toronto can receive a rebate of up to $4,475 on the municipal LTT, in addition to the $4,000 provincial rebate. Combined, first-time buyers in Toronto can save up to $8,475.

Legal Fees and Disbursements

You will need a real estate lawyer to handle the closing process, including title search, document preparation, mortgage registration, and the actual transfer of funds and ownership. In Ontario in 2026, expect to pay:

• Legal fees: $1,200 to $2,500, depending on the complexity of the transaction and the lawyer's experience. Standard resale transactions are at the lower end; new construction closings, which involve additional builder documentation, tend to be higher.
• Disbursements: $300 to $600. These are out-of-pocket expenses your lawyer pays on your behalf — title searches, registration fees, courier charges, and other administrative costs.
• HST on legal fees: Legal fees are subject to 13 percent HST, adding approximately $150 to $300 to the total.

Total legal costs typically range from $1,700 to $3,400. Shop around — legal fees for real estate transactions vary significantly between firms, but make sure you are comparing equivalent services. A lawyer who charges $1,200 but does not include certain disbursements in their quote may cost the same as one who charges $1,800 all-inclusive.

Title Insurance

Title insurance protects you and your lender against defects in the property's title — issues like unknown liens, encroachments, survey errors, or fraud. In Ontario, title insurance is not legally required, but virtually all mortgage lenders require it, and most real estate lawyers strongly recommend it.

The cost is a one-time premium paid at closing, typically $300 to $500 for a standard residential property. This covers both the lender's and owner's policies. Unlike other forms of insurance, there are no annual renewals — the single premium provides coverage for as long as you own the property.

Title insurance has become particularly important in Ontario in recent years due to a rise in real estate fraud, including title fraud schemes where criminals forge documents to sell or mortgage properties without the owner's knowledge.

Home Inspection

If you made your purchase conditional on a home inspection — which you should in 2026's buyer-friendly market — the inspection cost is typically paid at the time of the inspection, not at closing. However, it is a purchase-related expense that belongs in your closing cost budget:

• Standard home inspection: $400 to $600 for a typical home.
• Additional inspections: If the standard inspection reveals concerns, you may need supplementary inspections — pest inspection ($200 to $400), sewer line camera inspection ($300 to $500), radon testing ($150 to $300), or well and septic testing ($300 to $500 each for rural properties).

Budget $400 to $1,000 for inspections, depending on the property type and age.

Property Appraisal

Your mortgage lender will typically require an independent property appraisal to confirm the home's value supports the loan amount. In some cases, the lender covers this cost or uses an automated valuation model instead. When the buyer is responsible:

• Standard residential appraisal: $300 to $500.

Ask your mortgage broker or lender whether an appraisal will be required and who bears the cost before closing.

Mortgage Default Insurance (CMHC Insurance)

If your down payment is less than 20 percent of the purchase price, Canadian law requires you to purchase mortgage default insurance through CMHC, Sagen, or Canada Guaranty. The premium is calculated as a percentage of the mortgage amount and varies based on the size of your down payment:

• 5 percent down payment: 4.00 percent of the mortgage
• 10 percent down payment: 3.10 percent of the mortgage
• 15 percent down payment: 2.80 percent of the mortgage

For a $700,000 home with a 5 percent down payment ($35,000), the mortgage insurance premium would be approximately $26,600 (4.00 percent of $665,000). This is typically added to the mortgage balance rather than paid upfront at closing, but it is a real cost that increases your total borrowing amount and monthly payments.

The premium is also subject to provincial sales tax in Ontario (8 percent), which is paid at closing — approximately $2,128 in the example above. This is a cash cost you need to have available at closing.

Property Tax Adjustments

If the seller has prepaid property taxes beyond the closing date, you will reimburse the seller for the portion of prepaid taxes that covers the period after you take ownership. Conversely, if the seller has not paid property taxes up to the closing date, you receive a credit.

The amount varies depending on the closing date and the municipality's tax billing cycle. Budget $1,000 to $3,000 for property tax adjustments on a typical GTA home, though the exact amount will be calculated by your lawyer based on the actual tax bills.

Utility and Condo Fee Adjustments

Similar to property taxes, prepaid utilities (water, hydro if equalized billing is in place) are adjusted at closing. If you are purchasing a condominium, monthly maintenance fees are also prorated to the closing date.

These adjustments are typically minor — usually a few hundred dollars — but they can add up if the seller has prepaid several months of condo fees or utilities.

Moving Costs

While not a legal closing cost, moving expenses are a significant budget item that buyers often underestimate:

• Professional movers: $800 to $2,500 for a local GTA move, depending on the size of the home and distance.
• Storage: If there is a gap between your move-out and move-in dates, storage costs $100 to $300 per month for a standard unit.
• Utility setup: Connection fees for hydro, gas, water, internet, and other services typically total $100 to $300.

HST on New Construction

If you are purchasing a newly built home, HST applies to the purchase price. However, with Ontario's expanded HST rebate that took effect April 1, 2026, the full 13 percent HST is effectively eliminated on new homes priced up to $1 million, with tapering rebates on homes up to $1.85 million. This is a significant savings — up to $130,000 — but make sure you understand the eligibility requirements and timelines. The rebate runs through March 31, 2027.

For resale homes, HST does not apply to the purchase price itself, though it does apply to many of the associated service costs (legal fees, home inspection, appraisal, etc.).

Complete Closing Cost Estimate: Two Scenarios

Here is what total closing costs look like for two common GTA purchase scenarios in 2026:

Scenario 1: $700,000 Resale Home in Mississauga (First-Time Buyer, 10% Down)

Scenario 2: $1,000,000 Resale Home in Toronto (Not First-Time Buyer, 20% Down)

Tips for Managing Closing Costs

• Budget early. Start setting aside funds for closing costs as soon as you begin your home search. A common rule of thumb is to reserve 3 to 5 percent of the purchase price for closing costs on top of your down payment.
• Ask your lender about cash-back options. Some mortgage products offer cash-back at closing (typically 1 to 5 percent of the mortgage) in exchange for a slightly higher interest rate. This can help cover closing costs if your cash reserves are tight, but do the math — the higher rate costs more over the life of the mortgage.
• Negotiate with the seller. In 2026's buyer-friendly market, some sellers are willing to offer closing cost credits or contributions as part of the deal. This is more common in markets with elevated inventory, and your agent can advise on whether this is realistic for the property you are pursuing.
• Time your closing strategically. Closing at the beginning of the month versus the end can affect your property tax and condo fee adjustments. Your lawyer can advise on the optimal timing.
• Get multiple quotes. Legal fees, home inspection costs, and moving costs all vary significantly between providers. Getting two to three quotes for each service can save hundreds of dollars.

The Bottom Line

Closing costs in Ontario are a significant expense that every buyer needs to plan for — and underestimating them is one of the most common mistakes in the home buying process. On a typical GTA purchase in 2026, expect to pay $15,000 to $50,000 or more in closing costs on top of your down payment, depending on the purchase price, location, and your buyer status. Build these costs into your budget from the beginning, explore the rebates and savings available to you, and work with your agent and lawyer to ensure there are no surprises on closing day.