Closing Costs in Ontario: What You'll Actually Pay in 2026

Buyers almost always arrive at closing underprepared. Not because they did not save enough in total, but because they budgeted for the down payment and forgot that closing costs in Ontario are separate, substantial, and due in liquid cash on the same day.

In Ontario, closing costs typically run 2.5% to 4% of the purchase price for purchases outside Toronto. Inside Toronto, the Municipal Land Transfer Tax pushes that to 3.5% to 5% or more for first-time buyers who do not qualify for the full rebate. On a $700,000 purchase, that means $17,500 to $35,000 in closing costs sitting alongside your down payment.

This guide breaks down every line item.

The Biggest Line Item: Land Transfer Tax

The Ontario Land Transfer Tax (LTT) is the dominant closing cost for most buyers. It is calculated as a progressive tax on the purchase price and must be paid in full at closing — it cannot be financed or added to the mortgage.

Ontario LTT on a $700,000 home:

• 0.5% on first $55,000 = $275
• 1.0% on next $195,000 = $1,950
• 1.5% on next $150,000 = $2,250
• 2.0% on remaining $300,000 = $6,000
• Gross: $10,475

First-time buyers receive up to $4,000 back, reducing net provincial LTT to $6,475.

Toronto Municipal LTT (only for City of Toronto properties):

Toronto levies an additional Municipal Land Transfer Tax using nearly identical brackets. On a $700,000 Toronto home, the MLTT is also $10,475. First-time buyers receive a Toronto rebate of up to $4,475, leaving a net MLTT of $6,000.

Combined LTT at closing for a $700,000 home:

On a $1 million purchase:

• Outside Toronto, gross provincial LTT = $16,475 (after rebate, FTHB pays $12,475)
• In Toronto, combined gross = $32,950 (after rebates, FTHB pays $24,475)

Legal Fees and Disbursements

A real estate lawyer is mandatory in Ontario. Budget $1,500 to $2,500 total, which covers the lawyer's professional fee and disbursements — registration fees, title search charges, execution certificates, couriers, and software transaction fees.

The Teranet registration fee for electronically filing a document under the Land Titles Act is $83.45. A title search (parcel register) costs roughly $36.50. These are passed through as disbursements on your final statement.

Your lawyer also prepares the LTT affidavit, submits your first-time buyer refund claim, calculates property tax adjustments, arranges the title insurance policy, and processes the closing funds. Do not choose a real estate lawyer based on price alone — a mistake in the LTT affidavit or a missed condition can have significant financial consequences.

Title Insurance

Title insurance protects you and your lender against defects in title, fraud, undisclosed encumbrances, and zoning issues not caught in the title search. It is a one-time premium paid at closing.

• Standard condominium: $250 to $400
• Freehold property: $300 to $600
• New construction: varies, sometimes included by builder

The lender's policy protects the lender. The buyer's policy protects you. Most lawyers purchase both simultaneously. The premium covers you for as long as you own the property.

Home Inspection

For freehold properties and townhouses, a home inspection by an OAHI-certified inspector typically costs $500 to $700, depending on property size and location. Inspections for larger homes or those with complex systems (older electrical, older plumbing) may be on the higher end.

Condominium purchases typically include a suite inspection only — appliances, fixtures, HVAC within the unit. The inspection does not cover common elements; those are assessed through the Status Certificate review.

Status Certificate Fee (Condominiums Only)

If you are purchasing a condominium, the condominium corporation may charge up to $100 for the Status Certificate. This is a statutory maximum fee; some corporations charge less. The certificate is ordered after your offer is accepted conditionally.

Your real estate lawyer reviews the Status Certificate and its attached Reserve Fund Study, operating budget, and minutes. Review typically costs an additional $200 to $400 in legal time, usually included in your overall legal fee estimate.

Property Tax Adjustment

On closing day, the property taxes are adjusted between buyer and seller. If the seller has paid taxes for the full year and you are closing mid-year, you reimburse the seller for the portion of the year that will be yours. If taxes are paid in arrears and the seller has not yet paid, you may receive a credit.

In Toronto, the 2026 residential tax rate is 0.767311% of assessed value. On an assessed value of $600,000, annual taxes are approximately $4,604 — meaning a mid-year closing would involve an adjustment of $2,000 to $2,500 on your closing statement.

Condo Fee Adjustment (Condominiums Only)

Like property taxes, monthly condominium maintenance fees are adjusted between buyer and seller at closing. Budget approximately $300 to $700 depending on the monthly fee level and where in the month you close.

Moving Costs

Professional movers for a local move within the GTA typically cost $800 to $1,500 for a 1 to 2 bedroom condo. Larger homes or long-distance moves increase this substantially. Budget this separately from closing costs but do not omit it — it comes due within days of your closing date.

Home Insurance

Your lender requires proof of home insurance before funds advance. For condominiums, you insure the contents and your unit's improvements, not the building. For freehold properties, building insurance covers the structure itself.

Condo insurance typically runs $80 to $150/month. Freehold home insurance varies significantly by age, size, and location, but $150 to $300/month is a reasonable range for Ontario.

The Full Closing Cost Comparison: Toronto vs. Mississauga at $700,000

Add the 10% down payment of $70,000 and a first-time buyer needs roughly $86,925 in liquid cash to close a Toronto purchase versus $80,925 for the same property outside Toronto — a $6,000 difference attributable entirely to the MLTT.

What "Liquid Cash" Means

Everything in the above table requires cash — not CMHC-insured borrowing, not equity in another property, not a line of credit. Your closing statement will show a net amount due, and your lawyer's trust account needs to receive those funds before the deal closes.

This is why experienced Ontario buyers treat closing costs as a completely separate pool from their down payment when saving. If you have $90,000 saved and assume you can put $80,000 down with $10,000 in closing costs, you may find yourself $6,000 to $10,000 short on closing day.

For a complete, personalized calculation of your closing cost requirements based on location, purchase price, and first-time buyer status, the Ontario First-Time Home Buyer Guide includes a full closing cost worksheet covering every expense category.

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