Closing costs when buying a home in Ontario: full checklist
Last reviewed Oct 2026 · OntarioHomeMath
Your down payment is not the only cash you need on closing day. This checklist covers every cost Ontario buyers commonly face, which ones are fixed by law, which ones vary, and which ones apply only to condos or new builds.
A common rule of thumb is to set aside 1.5% to 4% of the price for closing costs. That range is wide because land transfer tax alone varies so much: a first-time buyer of a $350,000 condo outside Toronto may pay no LTT at all, while a repeat buyer of a $1.2 million Toronto house pays over $40,000. It is better to add up the actual items below.
1. Costs set by law
Land transfer tax
Ontario LTT applies to every purchase. In the City of Toronto you also pay Municipal LTT. On a $700,000 home it is $10,475 provincially, and double that in Toronto. First-time buyers can receive up to $4,000 back from Ontario and up to $4,475 from Toronto. Read our land transfer tax guide or use the LTT calculator.
Provincial sales tax on mortgage default insurance
If you put down less than 20%, your mortgage must be insured (CMHC, Sagen or Canada Guaranty). The premium itself is usually added to the mortgage, but Ontario charges 8% retail sales tax on the premium, and that tax cannot be financed. It is paid in cash through your lawyer on closing.
Example: $800,000 purchase with the minimum $55,000 down (6.9%). Mortgage $745,000 × 4.00% premium = $29,800 added to the loan. PST: 8% × $29,800 = $2,384 due on closing.
Non-Resident Speculation Tax
Only for foreign nationals and certain foreign entities: 25% across Ontario, plus 10% in Toronto. Most Canadian citizens and permanent residents do not pay it.
HST on new homes
Resale homes are not subject to HST. New homes are, though the price you sign is normally HST-inclusive with rebates assigned to the builder. If you don’t qualify for a rebate the builder assumed, you may owe it back on closing. See our new home HST rebate calculator.
2. Professional fees
- Real estate lawyer. Legal fees plus disbursements (title search, registration fees, courier, software and searches) and HST. Get an all-in written quote; quotes that look low often exclude disbursements.
- Title insurance. A one-time premium that most lenders require. Your lawyer arranges it.
- Home inspection. Optional but strongly recommended for resale homes. Paid when the inspection is done, which is before closing.
- Appraisal. Sometimes paid by the lender, sometimes passed to you. Ask your lender or broker.
- Mortgage broker. Usually paid by the lender on standard residential mortgages. If a broker asks you for a fee, make sure it is disclosed in writing.
Prices for these services vary by city, firm and property. We don’t publish averages we can’t verify; get two or three quotes instead.
3. Adjustments on closing
Adjustments make sure you and the seller each pay for the days you own the home. They appear on the statement of adjustments your lawyer sends before closing.
- Property tax. If the seller has prepaid the year’s instalments past closing day, you reimburse the seller for the remainder. If they are behind, you get a credit. Estimate annual property tax with our property tax calculator.
- Condo fees. Common expenses paid for the month of closing are prorated the same way.
- Utilities and rentals. Water tanks, furnaces or other rental contracts may be assumed by you; read the agreement of purchase and sale for what is included.
4. Condo-specific costs
- Status certificate. For a resale condo, the status certificate shows the corporation’s finances, reserve fund, lawsuits and any special assessments. Ontario caps the fee the corporation can charge. Have your lawyer review it before your conditions expire.
- Special assessments. If one has been levied, the agreement should say who pays it.
5. New-build (pre-construction) costs
New homes often come with closing adjustments that a resale buyer never sees. Depending on your agreement these can include:
- Tarion warranty enrolment fee (often charged back to buyers);
- utility meter and connection charges;
- development charges or education levies passed through above a stated cap;
- occupancy fees for a condo you move into before the building is registered (interim occupancy), which are paid monthly and are not equity;
- HST on upgrades and on any adjustments.
The schedule of adjustments in your agreement lists what the builder can charge, and some agreements cap the total. Have your lawyer review it before you sign or during the cooling-off period (10 days for new condo units).
6. Insurance and moving
- Home insurance. Your lender will want proof of property insurance before releasing funds. Condo owners need a unit-owner policy.
- Life or disability insurance. Offered by lenders, always optional.
- Moving, utility set-up, locks and basic tools. Small individually, real in total.
Worked example
A first-time buyer purchases an $800,000 resale condo in Toronto with the minimum $55,000 down:
| Item | Amount |
|---|---|
| Ontario LTT ($12,475) less $4,000 refund | $8,475 |
| Toronto MLTT ($12,475) less $4,475 rebate | $8,000 |
| PST on $29,800 CMHC premium | $2,384 |
| Legal, title insurance, inspection, adjustments, moving | Get quotes |
So before fees, this buyer needs about $18,859 on top of the $55,000 down payment. Put your own numbers into the closing costs calculator, which lets you edit every fee.
Checklist
- ☐ Land transfer tax (and Toronto MLTT), less first-time buyer refunds
- ☐ 8% PST on mortgage insurance premium
- ☐ Legal fees, disbursements and HST (written quote)
- ☐ Title insurance
- ☐ Home inspection / appraisal
- ☐ Property tax and condo fee adjustments
- ☐ Status certificate (condo resale)
- ☐ New-build adjustments and HST rebate assignment
- ☐ Home insurance in place before closing
- ☐ Moving and set-up
Official sources
- Ontario — Calculating land transfer tax
- Ontario — LTT refunds for first-time homebuyers
- City of Toronto — MLTT rates and fees
- CMHC — Mortgage loan insurance premiums
- Ontario — Non-Resident Speculation Tax
- CRA — GST/HST New Housing Rebate (RC4028)
- Tarion — Your warranty coverage
Last reviewed Oct 2026. General information only, not legal, tax or financial advice. Rules change; confirm with the official sources above and your lawyer or lender.