Ontario Closing Costs · 2026
Ontario Closing Costs — 2026
What home buyers should budget for before closing
How much are closing costs in Ontario? Ontario home buyers should budget for more than just the down payment. Closing costs can include Land Transfer Tax, title insurance, legal fees and disbursements, registration charges, property tax adjustments, lender deductions, and other transaction-specific items. The exact amount depends on the purchase price, location, financing, and details of the Agreement of Purchase and Sale.
Closing Cost Summary
What Ontario Buyers Pay at Closing
Typical cost items, who pays them, when they come due, and notes. Variable items are not given fixed amounts because they depend on the transaction.
| Cost Item | Who Pays | Typical Timing | Notes |
|---|---|---|---|
| Ontario Land Transfer Tax | Buyer | On closing | Provincial tax on the purchase price. Rates rise in brackets. First-time buyers may get a rebate. |
| Toronto Municipal Land Transfer Tax | Buyer (Toronto only) | On closing | A separate municipal tax that applies only when the property is in Toronto. First-time buyers may get a municipal rebate. |
| Legal fees | Buyer | On/before closing | The lawyer’s professional fee for the transaction. Subject to 13% HST. |
| HST on legal fees | Buyer | On closing | 13% HST added to the legal fee. Not charged on Land Transfer Tax. |
| Title insurance | Buyer | Before closing | One-time premium. Transaction-specific; entered separately in the calculator. |
| Registration charges | Buyer | On closing | Government fees to register the transfer and the mortgage. |
| Title searches | Buyer | Before closing | Searches to confirm title and encumbrances. Cost varies with the file. |
| Lender portal charges | Buyer | On closing | Mortgage-instruction portal fee passed through from the lender’s platform. |
| Bank draft / wire charges | Buyer | On closing | Cost of the bank draft or wire used to deliver closing funds. |
| Property tax adjustments | Buyer or Seller | On closing | Adjusted as of closing on the Statement of Adjustments. Depends on timing and payment status. |
| Condo / common-expense adjustments | Buyer or Seller | On closing | May apply to condo purchases. Agreement- and status-certificate-specific. |
| Lender deductions / mortgage adjustments | Buyer | On closing | Items the lender deducts from mortgage proceeds, such as interest adjustments or fees. |
| Builder adjustments (new construction) | Buyer | On closing | May apply to new-build purchases. Agreement-specific; review the APS carefully. |
Ontario Land Transfer Tax
- Pays:
- Buyer
- Timing:
- On closing
- Notes:
- Provincial tax on the purchase price. Rates rise in brackets. First-time buyers may get a rebate.
Toronto Municipal Land Transfer Tax
- Pays:
- Buyer (Toronto only)
- Timing:
- On closing
- Notes:
- A separate municipal tax that applies only when the property is in Toronto. First-time buyers may get a municipal rebate.
Legal fees
- Pays:
- Buyer
- Timing:
- On/before closing
- Notes:
- The lawyer’s professional fee for the transaction. Subject to 13% HST.
HST on legal fees
- Pays:
- Buyer
- Timing:
- On closing
- Notes:
- 13% HST added to the legal fee. Not charged on Land Transfer Tax.
Title insurance
- Pays:
- Buyer
- Timing:
- Before closing
- Notes:
- One-time premium. Transaction-specific; entered separately in the calculator.
Registration charges
- Pays:
- Buyer
- Timing:
- On closing
- Notes:
- Government fees to register the transfer and the mortgage.
Title searches
- Pays:
- Buyer
- Timing:
- Before closing
- Notes:
- Searches to confirm title and encumbrances. Cost varies with the file.
Lender portal charges
- Pays:
- Buyer
- Timing:
- On closing
- Notes:
- Mortgage-instruction portal fee passed through from the lender’s platform.
Bank draft / wire charges
- Pays:
- Buyer
- Timing:
- On closing
- Notes:
- Cost of the bank draft or wire used to deliver closing funds.
Property tax adjustments
- Pays:
- Buyer or Seller
- Timing:
- On closing
- Notes:
- Adjusted as of closing on the Statement of Adjustments. Depends on timing and payment status.
Condo / common-expense adjustments
- Pays:
- Buyer or Seller
- Timing:
- On closing
- Notes:
- May apply to condo purchases. Agreement- and status-certificate-specific.
Lender deductions / mortgage adjustments
- Pays:
- Buyer
- Timing:
- On closing
- Notes:
- Items the lender deducts from mortgage proceeds, such as interest adjustments or fees.
Builder adjustments (new construction)
- Pays:
- Buyer
- Timing:
- On closing
- Notes:
- May apply to new-build purchases. Agreement-specific; review the APS carefully.
Down Payment vs. Closing Costs
The Down Payment Is Not a Closing Cost
The down payment is the portion of the price you finance with your own funds. Closing costs are the additional amounts needed to complete the transaction on top of that.
Remaining Purchase Price
Purchase Price − Mortgage Amount − Deposits Already Paid
This is the balance of the purchase price still owing at closing, before any closing costs.
Approximate Funds Required
Remaining Purchase Price + Closing Costs
Closing costs add Land Transfer Tax, title insurance, legal fees and disbursements, and adjustments on top of the price balance.
The Purchase Closing Calculator combines these two steps for you: it starts from the purchase price, subtracts the mortgage and deposits, then adds Land Transfer Tax, rebates, the title insurance you enter, and the $1,399 All-In Purchase Closing Special to estimate the funds required.
Ontario Land Transfer Tax
Land Transfer Tax on Ontario Purchases
Land Transfer Tax is usually the largest single closing cost for an Ontario buyer, and Toronto buyers pay a second municipal tax.
- Ontario Land Transfer Tax (LTT) generally applies when you buy a home in Ontario.
- The City of Toronto charges a separate Municipal Land Transfer Tax on top of the provincial LTT, but only when the property is actually in Toronto.
- Qualifying first-time home buyers may be eligible for provincial (and, in Toronto, municipal) LTT rebates, subject to the program rules.
- LTT rates increase in brackets based on the purchase price, so the tax rises as the price goes up.
- Exact eligibility and the amount payable should be confirmed with your lawyer for your specific transaction.
For the full rates, brackets, first-time buyer refunds and Toronto MLTT details, see our Ontario Land Transfer Tax authority page, or estimate your provincial LTT and first-time buyer rebate with the Purchase Closing Calculator.
Title Insurance
Title Insurance on an Ontario Purchase
Title insurance is a one-time premium that protects against certain title and closing risks. It is commonly used in Ontario residential purchases.
Title insurance is an insurance product that protects the owner (and the lender) against certain defects in title and some closing-related risks that might not be discoverable through a title search alone. In Ontario residential purchases it is commonly placed by the lawyer on the buyer\u2019s behalf at closing.
The premium is transaction-specific — it generally depends on the property value and the coverage selected, and it is paid once at closing rather than as an ongoing premium. Because the amount varies, the Purchase Closing Calculator lets you enter the title-insurance premium separately so it is reflected in your estimated funds required.
FCT (First Canadian Title) is one of several title insurers active in Ontario. We do not claim that any one insurer is always cheaper; the appropriate insurer and premium depend on the transaction, and your lawyer can arrange the coverage that fits your file.
Legal Fees and Disbursements
Legal Fees at VirtualRealEstateLawyer.ca
Flat legal fees for standard Ontario residential transactions, plus HST and applicable disbursements.
| Service | Legal Fee |
|---|---|
| Purchase | $790 |
| Sale | $590 |
| Mortgage Refinance | $790 |
| Title Transfer | $390 |
Plus HST and applicable disbursements unless otherwise stated.
On a purchase, the legal fee is only one part of the total closing cost. The purchase process also includes standard disbursements and charges such as HST on the legal fee, registration charges, title searches, software charges, the mortgage-instruction portal charge and the bank draft fee. For a full breakdown of what is and is not included, see our Ontario Real Estate Lawyer Fees authority page.
$1,399 All-In Purchase Closing Special
A Flat Purchase Closing Price
Qualifying standard purchase transactions may be eligible for the $1,399 All-In Purchase Closing Special.
Included
- Legal fee
- HST on the legal fee
- Standard disbursements
- Standard software charge
- Registration of one transfer
- Registration of one mortgage
- Standard Law Society transaction fee
- Standard searches
- Standard mortgage instruction portal charge
- Standard bank draft charge
- Bridge financing legal work, where required
- Extra title issue work within the ordinary scope of the transaction
Additional
- Land Transfer Tax
- Title insurance
- Unusual lender requirements
- Rush fees
- Property tax adjustments
- Statement of Adjustments amounts
- Lender deductions
- Extraordinary third-party costs
- Additional registrations
The special bundles the legal fee, HST and standard closing charges into one flat price of $1,399.00 for one purchase with one mortgage. It does not include Land Transfer Tax or title insurance, and it does not cover extraordinary items, unusual lender requirements, rush fees or additional registrations. Eligibility is confirmed after the firm reviews your file.
Property Tax Adjustments
How Property Taxes Are Adjusted at Closing
Property taxes are usually split between buyer and seller as of the closing date, not paid in full by either party.
The seller may have prepaid property taxes for the year, or may owe taxes that are not yet due. On closing, the buyer and seller are adjusted as of the closing date so that each pays their share of the annual property tax.
These adjustments appear on the Statement of Adjustments, a document your lawyer prepares before closing. The amount depends on the closing date and the payment status of the property taxes at that time.
This is general information, not legal advice for specific facts. Your lawyer will calculate the actual adjustment for your transaction.
Condo Closing Adjustments
Closing Costs on a Condominium Purchase
Condo purchases can include adjustment items that freehold purchases typically do not.
Condominium purchases may involve common-expense adjustments, prepaid common expenses, and items connected to the status certificate that your lawyer reviews before closing. Parking and storage allocations, where applicable, can also affect the amounts on the Statement of Adjustments.
These items are agreement- and status-certificate-specific. They do not always apply, and the amounts vary by condominium corporation and transaction. Your lawyer confirms what applies after reviewing the status certificate and the Agreement of Purchase and Sale.
New Construction Closing Costs
Closing Costs on a Builder Purchase
Buying from a builder can add closing items that resale purchases do not, and many are set out in the Agreement of Purchase and Sale.
- Development-related charges
- Utility setup charges
- Meter fees
- Tarion-related items, where applicable
- HST-related adjustments
- Builder administration charges
- Levies and caps under the Agreement of Purchase and Sale
These items are agreement-specific and should be reviewed carefully before you sign. The builder\u2019s Agreement of Purchase and Sale, not this page, governs which charges apply to your transaction. Have a lawyer review the agreement before your conditions expire.
Mortgage-Related Closing Costs
Costs Connected to Your Mortgage
Your financing can create closing items beyond the legal fee and Land Transfer Tax.
- Lender deductions from the mortgage advance
- Interest adjustments around the closing date
- Appraisal or lender fees
- Mortgage-instruction portal fees
- Payout amounts on related transactions (such as discharging an existing mortgage)
- Bridge financing costs, where a bridge is required
The specific amounts depend on your lender, your mortgage terms and whether a bridge or payout is involved. Your lawyer coordinates with the lender and confirms the net mortgage proceeds that will be applied at closing.
Closing Cost Example
An Illustrative Ontario Purchase
A simplified example showing how the estimated funds required come together. Every variable number below is an illustrative example, not a quote, and does not apply to every transaction.
The estimated funds required are the remaining purchase price plus the closing costs. In this example, the buyer needs roughly $134,174.00 at closing, made up of $120,000.00 for the price balance and $14,174.00 in closing costs. Your own numbers will differ — use the Purchase Closing Calculator for an estimate based on your transaction.
Calculate Your Estimated Closing Funds
One Calculator for the Whole Picture
The Purchase Closing Calculator combines the moving parts of an Ontario purchase into a single estimated funds-required figure.
- Purchase price
- Land Transfer Tax
- First-time buyer rebates
- Mortgage proceeds
- Deposits paid
- Title insurance entered by you
- $1,399 All-In Purchase Closing Special
Closing Costs by Ontario City
Closing Costs Where You're Buying
Ontario real estate law applies province-wide, so the closing cost categories are the same across Ontario. See city-specific context and local contact details.
Ontario Closing Cost FAQs
Frequently Asked Questions
Direct answers to common questions about closing costs for Ontario home buyers.
Prepared by Jaramillo Law Professional Corporation
Serving Ontario real estate clients since 2017.
This page is general information about Ontario closing costs and is not legal advice for your specific transaction. To confirm what applies to your file, or visit our Ontario Real Estate Lawyer Fees page.
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