Land Transfer Tax · CMHC Insurance · Legal Fees · Closing Costs · First-Time Buyer Rebates
Buying a home in Ontario involves more than just the purchase price. Between land transfer tax, legal fees, home inspection, title insurance, and CMHC mortgage insurance, closing costs for the average Ontario buyer total $15,000–$30,000 on top of the down payment. This guide breaks down every cost so you can plan accurately and avoid surprises.
Ontario's Land Transfer Tax (LTT) is the largest closing cost for most buyers. It is paid on closing day and is calculated using a marginal bracket system on the purchase price:
| Portion of Purchase Price | Rate | Max Tax in Bracket |
|---|---|---|
| First $55,000 | 0.5% | $275 |
| $55,001 – $250,000 | 1.0% | $1,950 |
| $250,001 – $400,000 | 1.5% | $2,250 |
| $400,001 – $2,000,000 | 2.0% | $32,000 |
| Above $2,000,000 | 2.5% | Unlimited |
At the Ontario average of $850,000, the gross Ontario LTT is $13,475. First-time buyers receive a rebate of up to $4,000, reducing this to $9,475.
Toronto buyers pay double: The City of Toronto also charges a Municipal Land Transfer Tax (MLTT) using the same brackets, effectively doubling the LTT burden. Toronto buyers at $850,000 pay $26,950 total in LTT versus $13,475 outside the city.
For a comprehensive breakdown, visit our Ontario Land Transfer Tax guide.
If your down payment is less than 20%, you are required to purchase CMHC mortgage default insurance. The premium is added to your mortgage and paid over the amortization — not as a lump sum at closing. However, it does increase the size of your mortgage and your monthly payments.
| Down Payment | CMHC Premium Rate | Premium on $850K (at that %) |
|---|---|---|
| 5% ($42,500) | 4.00% | ~$32,300 |
| 10% ($85,000) | 3.10% | ~$23,560 |
| 15% ($127,500) | 2.80% | ~$20,230 |
| 20%+ | No CMHC | $0 |
Note: CMHC insurance is only available for homes priced below $1,500,000 (the 2024 threshold increase). Buyers with less than 20% down on homes above $1.5M must make a 20% down payment.
You are required to hire a real estate lawyer to complete a home purchase in Ontario. Your lawyer handles the title search, prepares closing documents, calculates adjustments, and registers the transfer with the province.
Title insurance protects you against defects in title, unpermitted work, survey issues, and title fraud. It is almost always worth the cost.
A home inspection costs $500–$700 for a standard detached home and is one of the most important due-diligence steps you can take. Inspectors check the structure, roof, HVAC, plumbing, electrical, and more. Skipping an inspection to compete in a hot market can expose you to costly post-closing surprises.
If the seller has prepaid property taxes beyond the closing date, you reimburse them the prepaid portion at closing. This is calculated as a daily rate and handled by your lawyer. Conversely, if taxes are overdue, the buyer receives a credit.
Local moves within a city typically cost $1,500–$3,000. Inter-city moves (e.g., GTA to London or Barrie) can run $3,000–$6,000 depending on distance, volume, and access.
HST applies to new-build homes and condos. However, a New Housing Rebate of up to $24,000 may apply on the provincial portion if the home is your principal residence. Builders often include HST in their advertised price — verify this before signing a purchase agreement.
When buying a resale condo, you should obtain and review the Status Certificate, which includes the condo corporation's financials, reserve fund status, and any outstanding special assessments. A condo lawyer review costs approximately $500–$700.
First-time buyers receive a rebate on Ontario LTT of up to $4,000. To qualify, all buyers on title must never have owned a home anywhere in the world, and the home must become your principal residence within 9 months.
The FHSA allows first-time buyers to contribute up to $8,000 per year (lifetime maximum $40,000), with contributions being tax-deductible and qualifying withdrawals being tax-free. This is one of the most powerful savings tools available for first-time buyers.
First-time buyers can withdraw up to $35,000 from their RRSP tax-free to put toward a home purchase. The withdrawn amount must be repaid to the RRSP over 15 years. Couples can each withdraw $35,000 for a combined $70,000.
The federal FTHBI shared-equity program was discontinued in March 2024. First-time buyers should focus on the FHSA and HBP as their primary federal tools.
| City | Approx. Median Price | Ontario LTT | Net LTT (First-Timer) |
|---|---|---|---|
| Toronto | $1,050,000 | $18,475 Ont + $18,475 MLTT | $32,950 |
| Richmond Hill | $1,150,000 | $20,475 | $16,475 |
| Aurora | $1,050,000 | $18,475 | $14,475 |
| Newmarket | $890,000 | $14,075 | $10,075 |
| Barrie | $680,000 | $10,225 | $6,225 |
| Guelph | $730,000 | $11,225 | $7,225 |
| Kitchener | $680,000 | $10,225 | $6,225 |
| Waterloo | $720,000 | $11,025 | $7,025 |
| London | $620,000 | $9,225 | $5,225 |
| Kingston | $590,000 | $8,475 | $4,475 |
| Peterborough | $590,000 | $8,475 | $4,475 |
| Belleville | $470,000 | $6,225 | $2,225 |
| Thunder Bay | $310,000 | $3,975 | $0 |
| Sudbury | $340,000 | $4,350 | $350 |
| North Bay | $300,000 | $3,725 | $0 |
All cities outside the City of Toronto pay only Ontario's provincial LTT. For detailed calculators, visit our Ontario Land Transfer Tax guide.
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For a typical Ontario home at $700,000–$900,000, total closing costs (excluding the down payment) run $15,000–$30,000. The biggest single cost is Ontario Land Transfer Tax, which ranges from $10,225 to $14,075 at those price points. Legal fees, title insurance, and inspection add another $3,000–$4,000.
HST applies to new construction homes and condos, but not resale properties. New build buyers may be eligible for the New Housing Rebate of up to $24,000. Confirm with your builder and lawyer whether HST is included in the purchase price before signing.
Yes. Ontario offers a rebate of up to $4,000 on the provincial LTT for eligible first-time buyers. You must never have owned a home anywhere in the world, and the home must become your principal residence within 9 months of closing. Toronto also offers a separate municipal rebate of up to $4,475 for first-time buyers within the city.
The minimum down payment is 5% on the first $500,000 of the purchase price and 10% on the remainder up to $999,999. Homes at $1M+ require a minimum 20% down payment. CMHC mortgage insurance is required for all insured mortgages (under 20% down).
No — closing costs cannot be rolled into a standard Canadian mortgage. You must have the full closing costs available in cash or liquid savings at the time of closing. Some lenders offer cashback mortgages that can help cover closing costs, but these typically carry higher interest rates.
For a detailed Ontario LTT breakdown, see our Ontario Land Transfer Tax guide.