Ontario Closing Funds · 2026
How Much Money Do I Need to Close on a House in Ontario?
Calculate the approximate funds you may need to send your lawyer before closing
How much money do I need on closing day? The amount you need to close is usually more than your down payment. Your lawyer must account for the remaining purchase price, Land Transfer Tax, title insurance, legal fees and disbursements, property-tax adjustments, and any lender deductions, then subtract the mortgage advance and deposits you have already paid.
The Core Formula
The Basic Closing Funds Formula
Your lawyer adds the costs and taxes to the purchase price, then subtracts the mortgage advance and deposits you have already paid. The Purchase Closing Calculator automates this same calculation.
Each Component
What Goes Into the Amount You Need to Close?
Each part of the formula is explained below so you understand what your lawyer is accounting for.
Purchase Price
The full purchase price under the Agreement of Purchase and Sale.
Mortgage Advance
The lawyer usually receives the mortgage funds from the lender. The amount actually received may be lower than the face amount of the mortgage if the lender deducts lender fees, appraisal fees, interest adjustments, lender legal or administration charges, or other deductions. This can increase the final amount the buyer must bring.
Deposit Already Paid
Deposits paid under the Agreement of Purchase and Sale are credited toward the purchase price. For example, on an $800,000 purchase with a $40,000 deposit, the deposit reduces the balance owing on closing by $40,000.
Land Transfer Tax
Ontario Land Transfer Tax is added to the amount needed on closing, and Toronto purchases also require Toronto MLTT. See our authority page for current rates and rebates. Ontario Land Transfer Tax.
Title Insurance
Title insurance is usually a separate, transaction-specific premium. Enter the title insurance premium into the calculator for your file.
Legal Fees and Disbursements
The current advertised legal fee for a standard purchase is $790 plus HST and applicable disbursements. Qualifying standard purchases may be eligible for the $1,399 All-In Purchase Closing Special. See our fees page for details. Real Estate Lawyer Fees Ontario.
Property Tax Adjustments
The buyer may owe the seller for prepaid property taxes depending on the closing date. See our Ontario Closing Costs page. Ontario Closing Costs.
Condo / Common Expense Adjustments
Prepaid condo fees may also be adjusted between buyer and seller where applicable.
Builder Adjustments
New-construction purchases may include extra builder adjustments set out in the Agreement of Purchase and Sale.
Key Distinction
Your Down Payment Is Not the Same as Your Closing Funds
Many buyers confuse the two. They are different amounts, and you may need more cash than your down payment alone.
Down Payment
The portion of the purchase price not financed by the mortgage.
Closing Funds
The actual amount the lawyer needs after accounting for the purchase-price balance, deposits, mortgage proceeds, taxes, fees and adjustments.
For example, on an $800,000 purchase with a $640,000 mortgage and a $40,000 deposit, your down payment is $160,000 \u2014 but your closing funds also add Land Transfer Tax, title insurance, legal fees and adjustments, so the cash you bring is more than $160,000.
Worked Example
Worked Example \u2014 $800,000 Purchase
An illustrative Ontario purchase showing how the funds required are built up step by step.
| Purchase price | $800,000 |
| Mortgage | $-640,000 |
| Deposit already paid | $-40,000 |
| Remaining purchase price | $120,000 |
| Ontario Land Transfer Tax | $12,475 |
| Title insurance (illustrative) | $300 |
| $1,399 All-In Purchase Closing Special | $1,399 |
| Property tax adjustment (illustrative) | $1,200 |
| Approximate funds required to close | $135,374 |
Illustrative only \u2014 your final amount will depend on your transaction. Title insurance and the property tax adjustment shown are examples only.
First-Time Buyer Example
What If I Am a First-Time Buyer?
A qualifying first-time buyer may receive the maximum provincial LTT refund, reducing the amount needed on closing.
| Remaining purchase price | $120,000 |
| Ontario LTT (before refund) | $12,475 |
| First-time buyer refund (max $4,000) | −$4,000 |
| Net Ontario LTT | $8,475 |
| Title insurance (illustrative) | $300 |
| $1,399 All-In Purchase Closing Special | $1,399 |
| Property tax adjustment (illustrative) | $1,200 |
| Approximate funds required (first-time buyer) | $131,374 |
Illustrative only and assumes the purchaser qualifies for the maximum provincial refund. Eligibility is not automatic. See our Ontario Land Transfer Tax page for refund rules.
Buying in Toronto
Buying in Toronto
Toronto buyers may need significantly more funds because they pay Ontario LTT plus a separate Toronto Municipal Land Transfer Tax.
In Toronto the amount needed on closing is higher, because both the provincial Land Transfer Tax and the Toronto Municipal Land Transfer Tax apply. Qualifying first-time buyers may be eligible for both the provincial refund and the Toronto MLTT rebate.
For the full Toronto MLTT rate schedule and rebate details, see our Ontario Land Transfer Tax authority page.
Timing
When Will I Know the Exact Amount I Need to Send?
The exact funds required are often finalized shortly before closing, because your lawyer needs information that is only confirmed near the closing date.
Your lawyer typically needs the following before the final figure is known:
- final Statement of Adjustments
- mortgage instructions
- lender advance details
- property-tax information
- title insurance premium
- final disbursements
- payout or adjustment information where applicable
The Purchase Closing Calculator is an estimate, not the final trust figure your lawyer will request.
Sending Funds
How Are Closing Funds Sent to the Lawyer?
Law firms generally require secure, verified funds. The firm will provide instructions for your specific transaction.
Closing funds may be required by:
- Bank draft
- Wire transfer
- Certified funds
- Other approved method
Fraud warning: Never send funds based on changed wiring instructions received by email without independently verifying them with the law firm using a known telephone number.
Closing Risk
What If the Lender Sends Less Than I Expected?
If mortgage proceeds are reduced by lender deductions or changed financing terms, the buyer may need to provide more funds personally.
The mortgage advance your lawyer receives can be lower than the face amount of the mortgage because of lender fees, appraisal fees, interest adjustments, or other deductions. If the lender sends less than expected, the shortfall is added to the cash you must bring on closing.
This is an important closing risk. Confirm your financing early and ask your lender about any deductions that may reduce the advance.
Calculate the Amount You May Need to Close
Calculate the Amount You May Need to Close
The Purchase Closing Calculator combines every part of the formula into one estimated funds-required figure.
- Purchase price
- Mortgage proceeds
- Deposits already paid
- Ontario Land Transfer Tax
- Toronto MLTT where applicable
- First-time buyer rebates
- Title insurance entered by you
- $1,399 All-In Purchase Closing Special
- Estimated funds required to close
Closing Funds by Ontario City
Closing Funds by Ontario City
Ontario real estate law applies province-wide, so the closing funds formula is the same across Ontario. See city-specific context and local contact details.
Ontario Closing Funds FAQs
Frequently Asked Questions
Direct answers to common questions about the money needed to close on an Ontario home.
Prepared by Jaramillo Law Professional Corporation
Serving Ontario real estate clients since 2017.
This page is general information about estimating closing funds and is not legal advice for your specific transaction. The calculator produces an estimate, not the final trust figure. To confirm what applies to your file, , see our Ontario Closing Costs and Real Estate Lawyer Fees Ontario pages, or try the Purchase Closing Calculator.
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