Closing Costs in Ontario: Everything You'll Pay Beyond the Down Payment

You've saved your down payment. You're pre-approved. You've found the perfect home. But wait — the down payment isn't all you need.

Closing costs in Ontario typically run 3-5% of the purchase price. On a $700,000 home, that's $21,000 to $35,000 on top of your down payment.

Let's break down exactly where that money goes.

Land Transfer Tax (The Big One)

In Ontario, land transfer tax is the largest closing cost. It's calculated on a sliding scale:

Example: On a $700,000 home, land transfer tax = $11,475

Toronto Municipal Land Transfer Tax

If you're buying in Toronto, there's an additional municipal land transfer tax on top of the provincial one. It has similar rates, effectively doubling your land transfer tax burden.

Toronto also offers a first-time buyer rebate of up to $4,475.

Example: A $700,000 home in Toronto = approximately $22,950 in combined land transfer taxes (before rebates).

Legal Fees

You need a real estate lawyer to close the transaction. Expect to pay:

• Legal fees: $1,000 - $1,800
• Disbursements: $400 - $700 (title search, registration, couriers, etc.)

Total legal costs typically run $1,500 - $2,500.

Title Insurance

Title insurance protects against issues with the property title — things like fraud, encroachments, or zoning violations discovered after purchase.

Cost: $300 - $500 (one-time payment, coverage lasts as long as you own the home)

Most lenders require it, and it's genuinely good protection for a relatively small cost.

Home Inspection

A professional home inspection costs $400 - $600 depending on the home's size and type.

Never skip this. The few hundred dollars you spend can save you from buying a home with $50,000 in hidden problems.

Appraisal Fee

Lenders often require an appraisal to confirm the home's value. Cost: $300 - $500.

Some lenders cover this cost or waive it for certain products. Ask your mortgage professional.

CMHC Insurance Premium

If your down payment is less than 20%, you'll pay mortgage default insurance (CMHC, Sagen, or Canada Guaranty).

Example: $700,000 home with 5% down ($35,000). Mortgage = $665,000. CMHC premium = $26,600.

The premium is added to your mortgage, so you don't pay it upfront — but you pay interest on it over the life of the loan.

Property Tax & Utility Adjustments

If the seller has prepaid property taxes beyond the closing date, you'll reimburse them. Same with prepaid utilities, condo fees, or oil tank fill-ups.

This can range from a few hundred to a few thousand dollars depending on timing.

Moving & Immediate Costs

Don't forget:

• Moving company: $500 - $2,000+
• Lock changes: $100 - $300
• Hook-ups: Internet, utilities, etc.
• Immediate repairs: Things you want to fix before moving in
• Furniture & appliances: If the home doesn't include them

Real Example: $700,000 Home

Let's add it all up for a $700,000 home in Hamilton (not Toronto) for a first-time buyer with 10% down:

Add that to your $70,000 down payment (10%), and you need about $83,000 cash to close on this home.

The Bottom Line

Plan for closing costs of 3-5% of the purchase price. If you're buying in Toronto, budget closer to 5-7% due to the municipal land transfer tax.

Don't get caught short. Having to scramble for funds days before closing is stressful and can jeopardize your purchase.