What Fees Do Home Buyers Pay in Ontario? A Complete Breakdown of Closing Costs, Taxes and Hidden Charges

 

Understanding what fees home buyers pay in Ontario is one of the most important steps in preparing for a successful real estate purchase. Beyond the purchase price itself, buyers in Ontario typically face a range of closing costs, taxes, and charges that can add up to 1.5% to 4% of the total property value — sometimes more in urban centres like Toronto. For a $900,000 home, that could easily mean $13,500 to $36,000 in additional costs before you receive a single key.

This guide provides a complete, itemized breakdown of every fee Ontario home buyers should anticipate in 2025 and beyond. Whether you are a first-time buyer navigating the process for the first time or an experienced investor adding to your portfolio, knowing what to expect — and when to expect it — puts you firmly in control of your finances.

Fardad Farhanian is a licensed real estate broker with RE/MAX REALTRON REALTY INC., Brokerage, serving buyers across Ontario with 25+ years of experience and $750M+ in successful transactions. With his deep knowledge of markets from Thornhill and Richmond Hill to Mississauga, Barrie, and Kingston, Fardad helps clients budget accurately so there are no unpleasant surprises on closing day. Explore available residential properties across Ontario or contact Fardad directly to discuss your purchase plan.

The Big One: Ontario Land Transfer Tax

Ontario Land Transfer Tax (LTT) is typically the single largest closing cost a home buyer in Ontario will pay. As of 2026, the provincial land transfer tax applies on a tiered basis to the purchase price of any property in Ontario. The rates are: 0.5% on the first $55,000; 1.0% on the portion from $55,001 to $250,000; 1.5% on the portion from $250,001 to $400,000; 2.0% on the portion from $400,001 to $2,000,000; and 2.5% on any portion above $2,000,000.

For a $900,000 home in Ontario, the provincial LTT works out to approximately $16,475. If you are purchasing within the City of Toronto, a second, separate Municipal Land Transfer Tax (MLTT) applies at identical rates, effectively doubling your land transfer tax obligation — bringing the combined Toronto total to roughly $32,950 for the same property.

First-time home buyers may qualify for a provincial LTT rebate of up to $4,000, and a Toronto MLTT rebate of up to $4,475 for qualifying purchases. For a detailed calculation breakdown, read the comprehensive guide on Ontario Land Transfer Tax Explained: How Much You’ll Pay and How to Calculate It. You can also use the RealtyMan mortgage calculator to model your total cost of ownership.

Legal Fees and Disbursements

Every real estate transaction in Ontario legally requires a licensed real estate lawyer to close the deal. Legal fees in Ontario typically range from $1,500 to $2,500 for a straightforward residential purchase, though more complex transactions — such as those involving title issues, private lenders, or new construction — may cost more. Disbursements are additional charges your lawyer incurs on your behalf, including title search fees, registration costs, and courier charges, and these commonly add another $500 to $1,000 on top of the base legal fee.

It is important to note that Fardad Farhanian provides general guidance on the transaction process but always recommends that buyers consult a qualified real estate lawyer for all legal matters related to their purchase. Do not attempt to close an Ontario real estate transaction without proper legal representation.

Title Insurance

Title insurance protects buyers against losses from title defects, fraud, survey errors, and issues that may not surface during a standard title search. In Ontario, title insurance is not legally mandatory but is strongly recommended and is standard practice. A one-time premium for a residential property typically ranges from $200 to $400 depending on the purchase price and insurer. Most Ontario real estate lawyers will arrange this on your behalf as part of the closing process.

Home Inspection Fees

A professional home inspection is one of the most valuable investments a buyer can make before committing to a purchase. In Ontario, home inspection fees generally range from $400 to $700 for a standard single-family home, with larger or older properties sometimes running higher. While the competitive 2025 GTA market has at times led buyers to waive inspections, doing so carries significant financial risk. Fardad Farhanian consistently advises clients to include an inspection condition wherever the market allows.

Mortgage Default Insurance (CMHC Premium)

If your down payment is less than 20% of the purchase price, you are required by Canadian law to purchase mortgage default insurance through CMHC, Sagen, or Canada Guaranty. As of 2026, the premiums are: 4.00% of the mortgage amount for a down payment of 5% to 9.99%; 3.10% for 10% to 14.99%; and 2.80% for 15% to 19.99%. This premium is typically added directly to your mortgage balance rather than paid upfront, but it does increase the total amount you owe and should be factored into your overall budget. Buyers are encouraged to speak with a licensed mortgage broker for personalized guidance on insurance premiums and qualification requirements.

Property Tax Adjustment

On closing day, your lawyer will calculate a property tax adjustment. If the seller has already paid property taxes beyond the closing date, you will reimburse that portion. If the taxes are owing, the seller pays their share up to closing and you assume responsibility from that point forward. This adjustment is built into the Statement of Adjustments prepared by your lawyer and can range from a few hundred to a few thousand dollars depending on the property’s assessed value and timing of the sale.

Additional Fees and Hidden Charges Buyers Often Miss

Ontario home buyers frequently overlook several other costs that can add meaningfully to their total outlay. For a fully itemized review, the blog post on Ontario Closing Costs Every First-Time Buyer Must Budget For in 2025 offers a comprehensive breakdown. Below is a summary of the charges that most commonly catch buyers off guard:

Cost Item	Estimated Range	Notes
HST on New Builds	13% (rebates may apply)	Applies to new construction; resale homes are generally exempt
Home Appraisal	$300 – $500	Often required by lenders for mortgage approval
Moving Costs	$1,000 – $5,000+	Varies significantly based on distance and volume
Utility Connection Fees	$100 – $300	Hydro, gas, water setup charges
Condo Status Certificate (if applicable)	$100 – $200	Required for condo purchases; review carefully with your lawyer
Interest Adjustment (new mortgages)	Varies	Covers interest between the mortgage advance date and first payment date

Buyers purchasing new construction condos or pre-construction homes face a unique set of additional charges including development levies, occupancy fees, and upgrade costs. Fardad Farhanian has extensive experience guiding buyers through pre-construction purchases across the GTA and can help you identify every potential charge before you sign a builder’s agreement. Browse available properties across Canada or explore coming soon listings for upcoming opportunities.

A Realistic Total Closing Cost Estimate for Ontario Buyers

For a resale home purchased at $900,000 in the Greater Toronto Area (outside the City of Toronto), a buyer with a 20% down payment can expect to budget approximately $20,000 to $28,000 in total closing costs, with Ontario Land Transfer Tax representing the largest single item. For a Toronto purchase at the same price with less than 20% down, the combined land transfer taxes, CMHC premium, legal fees, and associated costs could approach $40,000 or more. Always budget conservatively and build a cushion of at least 3% to 4% of the purchase price for closing costs alone.

Frequently Asked Questions: Ontario Home Buyer Fees

Do home buyers in Ontario pay any fees to their real estate agent?

In most Ontario residential real estate transactions, the buyer’s agent commission is traditionally paid by the seller, not the buyer, as part of the listing agreement. However, as of 2024, new CREA rules require buyers to have a written agreement in place with their agent that outlines compensation. In practice, many transactions continue to follow the traditional model where the buyer does not pay their agent directly out of pocket. Buyers should discuss compensation clearly with their agent before signing a Buyer Representation Agreement. Fardad Farhanian is fully transparent about all compensation arrangements with every client he works with.

Is HST charged when buying a resale home in Ontario?

No. Resale homes in Ontario are generally exempt from HST. However, HST at the rate of 13% does apply to the purchase of newly constructed homes, newly built condos, and substantially renovated properties. First-time buyers of new homes may qualify for the HST New Housing Rebate, which can reduce this cost significantly. Buyers are always advised to consult their real estate lawyer to confirm HST applicability for their specific transaction.

What is the land transfer tax rebate for first-time buyers in Ontario?

First-time home buyers in Ontario are eligible for a provincial Land Transfer Tax rebate of up to $4,000. This means that if your provincial LTT is $4,000 or less, you pay no land transfer tax at all. Buyers purchasing in Toronto may also qualify for the Municipal Land Transfer Tax rebate of up to $4,475. To qualify, you must be a Canadian citizen or permanent resident, at least 18 years of age, and must not have previously owned a home anywhere in the world. For the detailed calculation methodology, refer to the guide on Ontario Land Transfer Tax Explained.

When exactly do closing costs need to be paid in Ontario?

The vast majority of closing costs — including land transfer tax, legal fees, title insurance, and property tax adjustments — are due on the closing date, which is the date ownership of the property officially transfers to you. Your real estate lawyer will provide a Statement of Adjustments in advance of closing that outlines the exact amount you need to bring, typically in the form of a certified cheque or bank wire transfer. It is critical to have these funds ready and accessible before closing day.

Are closing costs in Ontario negotiable?

Some closing costs are fixed by law, such as Ontario Land Transfer Tax and municipal taxes. Others — including legal fees, home inspection fees, and moving costs — are set by service providers and may be negotiable or variable. Buyers can reduce overall costs by shopping around for legal services, choosing a qualified home inspector who offers competitive pricing, and timing their purchase to minimize property tax adjustments. Working with an experienced broker like Fardad Farhanian means having a knowledgeable advocate who helps you understand every cost before you make an offer, not after.

Work With an Experienced Ontario Real Estate Broker

Navigating Ontario’s real estate transaction fees, taxes, and closing costs is significantly easier with an expert in your corner. Fardad Farhanian, Broker, RE/MAX REALTRON REALTY INC., Brokerage, has helped hundreds of buyers across the GTA and throughout Ontario budget accurately and close confidently. With 25+ years of experience, $750M+ in completed transactions, and deep roots in communities including Thornhill, Markham, Richmond Hill, Vaughan, North York, Mississauga, Barrie, and Kingston, Fardad offers the insight and professional guidance that buyers need at every price point.

Visit the RealtyMan About page to learn more about Fardad’s background and approach, or get in touch today to start your home buying journey with full clarity on what to expect. You can also explore the RealtyMan blog for more guides, market updates, and buyer resources across Ontario and Canada.

Fardad Farhanian, Broker, RE/MAX REALTRON REALTY INC., Brokerage
7646 Yonge Street, Thornhill, ON L4J 1V9
Phone: +1 416-707-1031 | Email: info@realtyman.ca
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