Closing Costs in Ontario:
The Resale Buyer's Complete Breakdown
Closing costs are one-time fees Ontario buyers pay at the end of a real estate transaction—separate from the purchase price and down payment. For a typical resale home, budget 1.5%–4% of the purchase price, with Land Transfer Tax as the largest line item. According to CMHC (2024), most Ontario first-time buyers underestimate closing costs by 30–50%, leading to last-minute scrambles on closing day.
What are the 9 closing-cost items that Ontario resale buyers actually pay?
The 9 Closing Cost Items Resale Buyers Actually Pay
Each item is listed by "what / how much / who collects / when paid." Ranges reflect GTA 2026 market norms—your actual quote may differ. The calculator below lets you plug in your real numbers. For who you deal with at each step before and after closing, see the Home Buying Checklist.
| Item | Typical range | Who collects | When paid |
|---|---|---|---|
| Provincial LTT | 0.5%–2.5% (sliding scale) | Ontario | Closing day |
| Toronto MLTT (City of Toronto only) | 0.5%–7.5% (Toronto only) | City of Toronto | Closing day |
| Lawyer fee + disbursements | $1,500–$2,500 (+$300–$600) | Lawyer | Closing day |
| Title insurance | $250–$500 | Insurer (via lawyer) | Closing day |
| Home inspection | $400–$700 | Inspector | Conditional period |
| Appraisal | $300–$500 | Lender | Mortgage approval |
| Status Certificate (Condo) | ~$100 | Condo corp | Conditional period |
| CMHC premium PST (down payment under 20%) | 8% PST on the premium (premium 2.8%–4%) | Ontario | Closing day |
| Closing adjustments | $1,000–$3,000 | Seller (pro-rated) | Closing day |
Provincial Land Transfer Tax
Ontario charges a tiered tax based on purchase price. ~$6,475 on a $500K resale; ~$16,475 on a $1M resale.
Toronto Municipal LTT
Charged on properties within Toronto city limits (incl. Etobicoke / North York / Scarborough). 905 region exempt. New high-tier brackets effective 2024 for $2M+.
Real Estate Lawyer
Two parts: the lawyer's legal fee + third-party disbursements (land registration, title search, courier, etc.). Disbursements typically $300–$600.
Title Insurance
One-time premium that protects against title fraud, undisclosed liens, encroachments. Bought through your lawyer—standard on virtually every closing.
Home Inspection
Performed during the conditional period (5–7 days) by an OAHI-registered inspector. Usually skipped on condos, strongly recommended on freehold. Excludes pre-listing reports.
Property Appraisal
Lenders sometimes require an independent appraisal to confirm the property is worth what you paid. Most conventional mortgages cover this internally (free); occasionally borne by the buyer.
Status Certificate
A document package the lawyer reviews on every condo purchase—reveals reserve fund health, upcoming fee hikes, special assessments. Ontario caps the fee at $100.
PST on CMHC Premium
If your down payment is under 20%, CMHC insurance is mandatory. The premium itself rolls into the mortgage, but Ontario's 8% PST portion must be paid in cash on closing. ~$1,520 on a $500K home with 5% down.
Closing Adjustments
Sellers pre-pay property tax, utilities, and condo fees—the portion covering days after closing is reimbursed to them. Amount varies by closing date and what sellers pre-paid.
Sources: CMHC 2024 buyer survey, Ontario Ministry of Finance (LTT rates), City of Toronto MLTT bylaw, OREA lawyer fee survey. Your actual quotes may vary.
How do you use the closing cost calculator to see the total cash needed on closing day?
Enter Your Real Quotes — See Closing-Day Cash Required
LTT is calculated automatically using Ontario's tiered rates (Toronto MLTT + first-time-buyer rebate applied where relevant). For other line items, plug in your real quotes—the tool sums everything into closing-day cash required.
Your Numbers
Closing-Day Cash
Enter your purchase price and click Calculate to see the breakdown.
Estimator only — not legal or financial advice. LTT formulas reflect 2026 Ontario / Toronto rates. Final figures appear on your lawyer's statement of adjustments at closing.
First-Time Buyer Refunds: Up to $8,475 + Tax-Sheltered Withdrawals
Four programs available to resale first-time buyers. The lawyer automatically applies LTT rebates (no application needed); FHSA / RRSP HBP withdrawals are arranged with your bank.
Ontario Land Transfer Tax Refund
Full refund if Provincial LTT ≤ $4,000 (purchase price under ~$368K); pay the difference above. Lawyer applies automatically at closing—no separate application.
Toronto MLTT Rebate
Stackable with the provincial rebate (combined max $8,475). Full refund if Toronto MLTT ≤ $4,475. Handled by the lawyer.
First Home Savings Account
Contribute up to $8K/year ($40K lifetime). Contributions are tax-deductible; withdrawals for first-home purchase are tax-free. Stackable with RRSP HBP. Funds usable for closing-day cash via lawyer's trust.
RRSP Home Buyers' Plan
Withdraw up to $60K from RRSP ($120K per couple) for first-home purchase—repay over 15 years. Withdrawal is tax-free; missed repayments are added to taxable income.
Four Legal Ways to Lower Your Closing Costs
Real savings rarely come from haggling over a lawyer’s fee. They come from structuring the purchase so that some costs never arise at all.
Cross the 20% Line
Put 20% or more down and mortgage default insurance is not required: no premium, and no 8% Ontario tax on that premium — the part that has to be paid in cash at closing (item 8 above).
Compare the Whole Legal Package
Lawyers’ fees, disbursements and title insurance differ from firm to firm. Ask two or three lawyers for an all-in quote — fee, disbursements and title insurance together — and compare the totals, not the headline fee.
Weigh a Cash-Back Mortgage
Some lenders pay a cash-back when the mortgage funds, which can cover closing costs. It usually comes with a higher rate, and breaking the mortgage early can mean paying part of it back — compare the cost over the whole term, not just the cash today.
Negotiate the Seller In
In a slower market, ask the seller to fix items before closing or to give a credit on closing. Write it into the APS, and tell your lender or mortgage broker early — a seller credit can change how the lender sizes your mortgage.
5 Questions Buyers Ask Most
Q1. How much should I budget for closing costs in Ontario?
Q2. Can I roll closing costs into my mortgage?
Q3. Are closing costs tax deductible in Ontario?
Q4. When exactly do I pay closing costs?
Q5. What if I don't have enough cash for closing?
Want to Go Deeper? Continue Here
A few of Arthur's articles, mapped to specific closing cost items.
What Does a Real Estate Lawyer Do? Ontario Closing Duties Explained
Every step the lawyer takes from offer acceptance to closing day—what your $1,500–$2,500 actually buys you.
House Burns Down Before Closing: Ontario Buyer Rights and Real Cases
Real cases that make clear what title insurance protects against—and your legal rights between offer and closing.
Complete Buyer & Seller Knowledge Map: 365 Things You Should Know in Ontario
The full buying journey from showings to closing—closing costs are one piece of the puzzle.
New Home HST Rebate: Complete Process for Owner-Occupants vs Investors
If you're buying pre-construction instead of resale, HST is a separate large cost with different rules.
Is Preconstruction Really Cheaper Than Resale? 5 Hidden Costs
Pre-construction closing is another world—development charges, occupancy fees, Tarion enrolment, and more.
3 Financial Tests Before Selling: Cash Flow, Affordability, Next-Home Math
For move-up buyers selling an existing home—closing costs are a critical variable in your next-home math.
Closing Costs Are One Piece.
See the Full Buying Journey.
From decision to keys-in-hand: the 18-step Ontario buying process—what to do, what to budget, what to watch for. Closing is steps 11–13.
See the 18 Steps →