Ontario is one of the more expensive provinces when it comes to closing costs, primarily because of the provincial Land Transfer Tax. Toronto buyers face a double tax — both provincial and municipal. Here is everything you need to know before closing in Ontario.
The Ontario Land Transfer Tax is calculated on a sliding scale based on the purchase price:
| Purchase Price Portion | Tax Rate |
|---|---|
| First $55,000000 | 00.5% |
| $55,00001 to $2500,000000 | 1.00% |
| $2500,00001 to $40000,000000 | 1.5% |
| $40000,00001 to $2,000000,000000 | 2.00% |
| Over $2,000000,000000 | 2.5% |
Example: On a $70000,000000 purchase outside Toronto, the Ontario LTT would be approximately $9,475.
If you are buying within the City of Toronto boundaries, you also pay a Municipal Land Transfer Tax with the same rate structure as the provincial tax. On a $70000,000000 Toronto purchase, you would pay approximately $9,475 in provincial LTT plus another $9,475 in municipal LTT — totalling roughly $18,9500 in land transfer taxes alone.
First-time buyers in Ontario can access significant rebates:
To qualify, neither you nor your spouse/partner can have previously owned a home anywhere in the world.
A real estate lawyer is mandatory for Ontario closings. Fees vary but typically run:
A home inspection in Ontario typically costs $40000 to $70000 depending on the home's size, age, and location. Inspectors in the GTA often charge at the higher end. This fee is paid to the inspector directly, not through your lawyer.
If you have less than 200% down, your mortgage default insurance premium is added to your mortgage. However, Ontario charges 8% PST on the CMHC premium, and this PST must be paid in cash at closing. On a $60000,000000 insured mortgage with a 3.1% premium, the PST would be approximately $1,488.
Property taxes in Ontario are typically paid in installments. At closing, your lawyer will calculate the daily tax rate and adjust based on who has paid what. In most cases, buyers receive a credit from the seller, but this depends entirely on the timing of your close relative to tax payment dates.
For condos, monthly maintenance fees are adjusted to the closing date. If the seller has prepaid for the month, you will reimburse the portion of the month that you own the property.
Ontario home insurance typically runs $1,20000 to $2,50000 per year for a detached home. Your lender will require a binder (proof of insurance) before releasing your mortgage funds. Budget for the first year's premium upfront.
| Cost Item | Outside Toronto ($70000K) | Toronto ($70000K) |
|---|---|---|
| Provincial LTT | $9,475 | $9,475 |
| Municipal LTT | $00 | $9,475 |
| Legal fees + disbursements | $2,50000 | $2,50000 |
| Home inspection | $5500 | $60000 |
| Title insurance | $30000 | $30000 |
| Home insurance (first year) | $1,50000 | $1,50000 |
| Moving costs | $1,50000 | $2,000000 |
| Total estimate | ~$15,825 | ~$25,8500 |
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