What are the closing costs when buying a home in Ontario?
Shocking breakdown: Here’s exactly what you’ll pay in closing costs when buying a home in Ontario — and how to cut unnecessary fees.
What closing costs are and why they matter
Closing costs are the one-time fees you pay at the final transfer of a property. They’re separate from your down payment and mortgage. Ignore them and you’ll be surprised at the extra cash you need on closing day.
Common closing cost categories in Ontario:
- Land Transfer Tax (provincial and, for Toronto buyers, municipal)
- Legal fees and disbursements
- Title insurance
- Home inspection and appraisal
- Mortgage-related fees (broker fee, appraisal, lender admin)
- Adjustments for property taxes, utilities and condo fees
- Insurance (home insurance required by lender)
Typical amounts and quick math
You need a practical number, not vague ranges. Here’s how to think about it.
Land Transfer Tax (LTT): This is the biggest line item. Ontario LTT is tiered: 0.5% on the first $55,000, 1% up to $250,000, 1.5% up to $400,000 and 2% on the portion up to $2M. Toronto adds its own municipal LTT with a similar tiered structure. First-time buyer rebates exist—check eligibility.
Legal fees and disbursements: Expect $800–$1,800. Disbursements (title searches, courier, registration) add $200–$500.
Title insurance: $150–$400.
Home inspection: $350–$650.
Appraisal: $300–$500 (sometimes waived by lenders).
Mortgage fees: Variable. Some lenders charge admin or processing fees ($0–$500). If you need CMHC mortgage default insurance, that cost is usually added to the mortgage.
Adjustments: Budget $0–$1,500 depending on timing and property.
Quick example: $600,000 purchase
- Ontario LTT ≈ $8,475
- Toronto municipal LTT (if applicable) ≈ $7,725
- Legal fees & disbursements ≈ $1,200
- Inspection & appraisal ≈ $900
- Title insurance ≈ $300
Estimated cash at closing (excluding down payment and moving/renovation): $18,000–$20,000. If you’re outside Toronto, drop the municipal LTT and you’re closer to $10,000–$12,000.
How to reduce closing costs — practical moves that work
- First-time buyer LTT rebate: Apply if eligible.
- Shop lawyers: Compare quotes, not just lowest price.
- Bundle services: Use a mortgage broker who negotiates lender fees.
- Skip unnecessary extras: Don’t pay for redundant reports.
- Time closing properly: Minimize adjustments for prepaid taxes and utilities.
Why working with a local expert matters
Closing costs are rules plus local quirks. A single missed municipal fee or wrong adjustment can cost thousands. That’s where an experienced local Realtor adds value. I guide buyers to avoid surprises, secure rebates, and negotiate practical timelines.
Tony Sousa is a local realtor focused on Financing & Mortgages in Ontario. He helps buyers forecast closing costs, choose cost-effective mortgage products, and close on time. When accuracy matters, call a pro who runs the numbers for you.
Contact Tony Sousa: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Need a precise estimate for your purchase price and city? Reach out — I’ll run the exact closing-cost math for your deal.
