Closing Costs in Ontario When Buying a Home: Full Breakdown With Real Numbers

 

One of the most common financial surprises for Ontario homebuyers — especially those purchasing for the first time — is discovering just how much money is required beyond the down payment. Understanding your closing costs ontario home purchase breakdown before you sign anything is not a luxury; it is a necessity. As of 2026, closing costs in Ontario typically range from 1.5% to 4% of the purchase price, meaning a buyer purchasing a $900,000 home could face anywhere from $13,500 to $36,000 in additional out-of-pocket expenses at closing.

This guide breaks down every major and minor closing cost you are likely to encounter when buying a home in Ontario — with real numbers, practical context, and guidance on how to plan ahead. For an experienced perspective on navigating these costs, explore the insights shared on the RealtyMan blog, where Fardad Farhanian regularly publishes actionable real estate guidance for buyers across Canada.

Why Closing Costs Catch Ontario Buyers Off Guard

Most buyers spend months saving for their down payment and then assume the remaining steps are straightforward. The reality is that closing costs ontario first time buyer situations involve a layered set of fees — some mandatory, some optional, and some that vary depending on your purchase price, property type, and location within Ontario. Failing to account for these costs can delay your closing, put strain on your finances, or force you to renegotiate your mortgage at the last minute.

The good news: every single one of these costs is predictable if you plan properly. The blog post 10 Hidden Costs of Buying a Home in Ontario That First-Time Buyers Often Miss is an excellent companion resource that covers overlooked expenses in detail, while this article focuses specifically on the full closing cost picture with concrete dollar figures.

The Full Closing Cost Breakdown for Ontario Home Buyers (2025–2026)

Below is a structured breakdown of every major closing cost category, with estimated figures based on a $900,000 purchase price in the Greater Toronto Area. Costs will vary for properties outside the GTA, and buyers in Toronto’s city limits face an additional land transfer tax layer.

Closing Cost Item	Estimated Range	Notes
Ontario Land Transfer Tax	$13,950 – $16,475	Based on $900K purchase; tiered provincial rate
Toronto Municipal Land Transfer Tax	$13,950 – $16,475	City of Toronto purchases only; same tiered structure
Legal Fees & Disbursements	$1,500 – $3,000	Real estate lawyer; title searches, registration
Title Insurance	$200 – $400	One-time premium; protects against title defects
Home Inspection	$400 – $700	Strongly recommended; paid before closing
CMHC Mortgage Insurance	$14,400 – $28,800+	Required if down payment is under 20%; added to mortgage
Property Tax Adjustment	$500 – $3,000	Depends on closing date and seller’s prepayment
Utility & Condo Fee Adjustments	$200 – $1,500	Prorated at closing; condo buyers face this most often
Moving Costs	$800 – $3,000+	Varies by distance, volume, and time of year
HST on New Builds	Variable	May apply to new construction; rebates available

For a more detailed breakdown specific to 2025, refer to Closing Costs in Ontario: A Complete Breakdown for Buyers in 2025, which covers many of these line items with updated figures and rebate eligibility scenarios.

Ontario Land Transfer Tax: The Biggest Variable Cost

The Ontario Land Transfer Tax (LTT) is the single largest closing cost for most buyers, and it operates on a tiered structure. As of 2026, the provincial rates are:

• 0.5% on the first $55,000
• 1.0% on $55,001 to $250,000
• 1.5% on $250,001 to $400,000
• 2.0% on $400,001 to $2,000,000
• 2.5% on amounts above $2,000,000

On a $900,000 purchase, the Ontario LTT comes to approximately $13,950. If you are buying within the City of Toronto, you also pay the Toronto Municipal Land Transfer Tax at nearly identical rates, effectively doubling this cost — bringing your combined land transfer tax to roughly $27,900 on a $900,000 property.

First-time buyer rebate: Ontario first-time home buyers are eligible for a rebate of up to $4,000 on the provincial LTT. Toronto first-time buyers can receive an additional municipal rebate of up to $4,475. These rebates are applied at closing through your lawyer and can meaningfully reduce your out-of-pocket costs.

Legal Fees: Why You Cannot Skip a Real Estate Lawyer

In Ontario, a licensed real estate lawyer is legally required to complete your home purchase. Legal fees cover the title search, reviewing your Agreement of Purchase and Sale, registering the transfer of title, and handling the mortgage documentation. Expect to pay between $1,500 and $3,000 in total legal fees and disbursements.

Disbursements — the out-of-pocket expenses your lawyer incurs on your behalf — include title registration fees, government searches, and courier charges. These are separate from the base legal fee and typically add $500 to $900. Always ask your lawyer for a written quote that separates their professional fee from disbursements so you are not surprised at closing. This article does not constitute legal advice; always consult a qualified real estate lawyer for your specific situation.

CMHC Mortgage Default Insurance: Who Pays It and How Much

If your down payment is less than 20% of the purchase price, Canada Mortgage and Housing Corporation (CMHC) mortgage default insurance is mandatory under federal regulations. The premium is calculated as a percentage of your insured mortgage amount:

• 5% to 9.99% down: 4.00% insurance premium
• 10% to 14.99% down: 3.10% premium
• 15% to 19.99% down: 2.80% premium

On a $900,000 property with a 10% down payment ($90,000), your insured mortgage is $810,000. At a 3.10% premium, the CMHC insurance cost is $25,110 — which is typically added to your mortgage balance rather than paid upfront. However, Ontario also charges HST on the CMHC premium itself, and that portion must be paid out of pocket at closing. At 13% HST, you would owe approximately $3,264 at closing on this example. Note: As of late 2024, CMHC’s maximum insurable home price was raised to $1.5 million, opening CMHC coverage to more buyers in the GTA market.

Hidden Costs Buying a House Ontario: The Line Items Buyers Forget

Beyond the major costs above, several smaller — but real — expenses catch buyers off guard. These include:

Property Tax Adjustments

If the seller has prepaid property taxes beyond your closing date, you will owe them a reimbursement at closing. Conversely, if taxes are in arrears, you may receive a credit. Your lawyer handles this calculation automatically, but it is a cash flow item to anticipate.

Utility Hook-Up and Connection Fees

Some municipalities charge connection fees when transferring utilities to a new owner, particularly for water, hydro, and gas services. Budget $200 to $500 for these administrative fees.

Title Insurance

Title insurance protects you and your lender against losses from title defects, encroachments, or fraud that may not appear in a standard title search. A one-time premium of $200 to $400 is standard in Ontario and is almost universally required by lenders.

Home Inspection Fees

A professional home inspection typically costs $400 to $700 depending on the property size and type. While this cost is paid before closing during your due diligence period, it is part of your total home purchase cost and should be factored into your budget. Skipping an inspection to save money in a competitive market is a risk that can result in far greater expenses post-possession.

Moving and Immediate Post-Move Costs

Professional moving services in the GTA range from $800 for a local condo move to $3,000 or more for a large home with long-distance transport. Factor in immediate post-move costs: changing locks, window coverings, minor repairs, and painting can add another $1,000 to $5,000 depending on the property condition.

How to Use the Mortgage Calculator to Budget for Closing Costs

Accurate budgeting starts with knowing your total purchase cost, not just your down payment. The RealtyMan mortgage calculator allows you to model your monthly payment scenarios so you can ensure your financing strategy leaves room for closing cost cash reserves. As a general rule, keep a minimum of 3% to 4% of the purchase price liquid in addition to your down payment to cover closing costs with a comfortable buffer.

Buyers looking to explore properties currently available across Ontario can also browse residential listings across Canada to get a realistic sense of current price points and how closing costs scale accordingly.

Frequently Asked Questions: Closing Costs Ontario Home Purchase Breakdown

How much are closing costs in Ontario on average?

As of 2026, closing costs in Ontario typically range from 1.5% to 4% of the purchase price. On a $900,000 home, that translates to approximately $13,500 to $36,000 in additional costs beyond your down payment. The exact amount depends on your location (Toronto buyers pay double land transfer tax), whether you are a first-time buyer (eligible for LTT rebates), and whether CMHC insurance applies to your mortgage.

Do first-time home buyers get any closing cost reductions in Ontario?

Yes. First-time buyers in Ontario are eligible for a Land Transfer Tax rebate of up to $4,000 at the provincial level. If purchasing within the City of Toronto, an additional municipal rebate of up to $4,475 is available. These rebates are applied directly at closing through your real estate lawyer. First-time buyers should also explore federal programs that may assist with costs — consult a mortgage broker for personalized guidance.

Is HST applied to home purchases in Ontario?

HST (Harmonized Sales Tax at 13%) is not charged on the resale of existing homes in Ontario. However, HST does apply to newly constructed homes, substantially renovated properties, and the purchase of vacant land. New build buyers may qualify for partial HST rebates. Additionally, HST is charged on your CMHC mortgage insurance premium, and that HST portion must be paid in cash at closing — it cannot be added to the mortgage.

Can closing costs be rolled into my mortgage in Ontario?

In most cases, no. Closing costs in Ontario must be paid in cash at the time of closing. The one exception is the CMHC mortgage default insurance premium itself, which can be added to your total insured mortgage balance — but the HST on that premium must still be paid out of pocket. Some lenders offer “cashback” mortgage products that may help cover closing costs, but these come with higher interest rates. Consult a licensed mortgage broker for advice specific to your financial situation.

What happens if I don’t have enough money to cover closing costs?

If you arrive at closing without sufficient funds, the transaction can fail — resulting in loss of your deposit, potential legal liability to the seller, and significant financial and reputational damage. This is why experienced brokers like Fardad Farhanian always advise buyers to secure closing cost funds separately from their down payment, ideally held in a high-interest savings account and not invested in volatile assets. Planning for 4% on top of your down payment provides a safe buffer for most Ontario transactions.

Work With an Experienced Ontario Real Estate Broker

Understanding your ontario home purchase fees 2025 and beyond requires more than a checklist — it requires a trusted advisor who has navigated hundreds of transactions across every price point and property type. Fardad Farhanian is a licensed real estate broker with RE/MAX REALTRON REALTY INC., Brokerage, serving clients across Canada with 25+ years of experience and over $750 million in successful transactions. Whether you are a first-time buyer in Thornhill, an investor in Markham, or relocating from British Columbia, Fardad provides the guidance you need to budget correctly, negotiate effectively, and close with confidence.

Learn more about Fardad’s background and approach at the About Fardad Farhanian page, or browse available properties across Ontario and Canada on the Properties in Canada listings page. Ready to start your home buying journey? Contact Fardad Farhanian directly to schedule a no-obligation consultation and get a personalized closing cost estimate for your target property.