Ontario Closing Costs ChecklistBuyer, Seller & Moving Prep
Arthur Zhao · AZ Real Estate Partners
AZ AZ Real Estate Partners Buying Process · Cost Planning
AZ Real Estate Partners
Ontario Closing Costs ChecklistBuyer, Seller & Moving Prep
Beyond the purchase price, how much extra cash do you actually need? Here’s every line item — nothing hidden.
Legal Fees
Adjustments
Moving Checklist
What Are Closing Costs?
Closing costs are all expenses due on closing day (the date the transaction completes) beyond your down payment. According to CMHC (2025), Ontario buyers should budget an additional 1.5%–4% of the purchase price for closing costs. On a $900,000 home, that means having $13,500–$36,000 in extra cash ready at closing.
Buyer Closing Costs
| Cost Item | Typical Range | Notes |
|---|---|---|
| Ontario Land Transfer Tax | ~$16,475 on $900K | First-time buyers: up to $4,000 rebate |
| Toronto Municipal LTT | ~$15,225 on $900K | City of Toronto only; first-time buyers: up to $4,475 rebate |
| Legal Fees + Disbursements | $1,500–$2,500 | Includes title search, mortgage registration, admin |
| Title Insurance | $250–$400 | One-time, lifetime coverage |
| Home Inspection | $450–$700 | Higher for detached homes |
| Adjustments | $500–$3,000 (variable) | Pro-rated property tax, condo fees, etc. |
| CMHC Mortgage Insurance (if applicable) | 2.8%–4% of loan | Required if down payment is under 20% |
| Moving Costs | $1,000–$4,000 | Depends on distance and volume |
Ontario Land Transfer Tax Rates
$0–$55,000
0.5%
$55,001–$250,000
1.0%
$250,001–$400,000
1.5%
$400,001–$2,000,000
2.0%
Understanding Adjustments
Adjustments are pro-rated settlements in the Statement of Adjustments — your lawyer calculates them automatically. Common adjustment items:
Property Taxes
If the seller pre-paid annual property taxes, the buyer reimburses the seller for the days after closing.
Condo Maintenance Fees
Monthly fees already paid are split by the closing date — buyer gets credit for unused days or owes seller for their share.
Utility Deposits
Any pre-paid water, heat, or utility deposits are adjusted proportionally.
Rental Income (Tenanted)
If the property has tenants, the seller’s pre-collected rent for days after closing transfers to the buyer.
Seller Closing Costs
Real Estate Commission
3%–5%
Of sale price; includes buyer’s agent co-op
Legal Fees
$1,000–$1,500
Includes mortgage discharge and title transfer
Mortgage Prepayment Penalty
Varies
Fixed rates can trigger 3-month interest penalty
WETT / Pool Certifications
$200–$600
If requested by buyer; not mandatory
Closing Day: 5 Key Steps
Buyer Funds Delivered to Lawyer
1–2 days before closing, the buyer delivers the balance (down payment remainder + closing costs) as a bank draft to their lawyer’s trust account.
Lawyers Complete Registration
Both lawyers use the Teraview system to register the deed transfer and mortgage — typically completed in the afternoon.
Funds Released to Seller
Once registration is complete, the buyer’s lawyer transfers funds to the seller’s lawyer, who deducts the mortgage payout and fees and releases the net proceeds to the seller.
Keys Handed Over
Usually by 6 PM, depending on when registration completes. Sellers should not schedule their move-out for closing day — delays are common.
Final Walk-Through
Just before closing, confirm the property’s condition, that all agreed items are present, and that utilities work. Document issues immediately with photos and notify your lawyer.
Moving Preparation Checklist
2–4 Weeks Before Closing
- Book movers (peak season books fast)
- Notify bank / insurance of new address
- Notify employer / school
- Cancel services at old address
- Schedule utility transfers (hydro, gas, internet)
1 Week Before Closing
- Confirm lawyer has all documents
- Prepare bank draft
- Set up Canada Post mail forwarding
- Update driver’s licence / health card
- Schedule final walk-through
Closing Day
- Final walk-through of property
- Photo-document the condition
- Count keys, fobs, remotes
- Read water / hydro / gas meters
- Confirm all agreed chattels present
Common Pitfalls to Avoid
- Timing of funds: Bank drafts cannot be arranged on the day of closing — prepare early
- HST on new construction: New homes (not resale) require approximately 2% HST on top — resale homes are generally exempt
- Non-resident sellers: Purchasing from a non-resident may require the buyer to hold back a portion for CRA withholding tax
- Home insurance: Banks require proof of insurance before releasing mortgage funds — purchase your policy before closing day
Frequently Asked Questions
How much should Ontario buyers budget for closing costs?
According to CMHC (2025), Ontario buyers should budget an additional 1.5%–4% of the purchase price for closing costs beyond the down payment. On a $900,000 home that means $13,500–$36,000 in extra cash needed at closing.
Do first-time buyers get a land transfer tax refund in Ontario?
Yes. Ontario first-time buyers can receive up to $4,000 in provincial land transfer tax rebate. Those buying within the City of Toronto can also receive up to $4,475 in Toronto municipal land transfer tax rebate — for a combined maximum of $8,475.
What are adjustments on a real estate closing?
Adjustments are pro-rated calculations on closing day where buyers and sellers settle pre-paid expenses proportionally. Common adjustments include property taxes, condo maintenance fees, and utility bills. Your lawyer calculates these automatically in the Statement of Adjustments.
What are the main costs for sellers in Ontario?
Sellers primarily pay real estate commission (approximately 3%–5% of the sale price), legal fees of $1,000–$1,500, any mortgage prepayment penalty if breaking a fixed-rate term early, and moving costs. Sellers do not pay land transfer tax.
Why can closing day be delayed?
Common causes include buyer funds not reaching the lawyer’s trust account on time, last-minute lender condition reviews, title issues, or document delays between lawyers. Confirm with your lawyer at least one week before closing that all documents and funds are in order.
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Worried About Closing Cost Surprises?
I prepare a full closing cost estimate before you make an offer — so you go in with eyes open.
Arthur Zhao · Real Estate Broker · FRI · ABR · SRS · MCNE · E-PRO · GUILD Elite
VP & Branch Manager, Bay Street Group Inc.
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · GUILD Elite
VP & Branch Manager, Bay Street Group Inc.
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