In This Article How much are closing costs when buying a home in Ontario? Can closing costs be added to my mortgage? Do first-time buyers pay land transfer tax in Ontario? Beyond the Down Payment Land Transfer Tax Ontario First-Time Buyer Rebates Legal Fees Planning Your Budget? Title Insurance Home Inspection Appraisal Fees Other Costs to Consider Sample Closing Cost Calculation FAQ What's Next More on this topic More on this topic What Are Closing Costs? The Major Closing Costs Land Transfer Tax (Provincial) Toronto Municipal Land Transfer Tax Legal Fees and Disbursements Title Insurance Home Inspection Appraisal Fee Additional Closing Costs Property Tax Adjustment Condo Costs (If Applicable) Utility Hook-Ups Moving Expenses Home Insurance First-Time Buyer Programs to Reduce Costs First Home Savings Account (FHSA) RRSP Home Buyers' Plan Land Transfer Tax Rebates Tips to Minimize Closing Costs 1. Compare Legal Fee Quotes 2. Ask About Lender Credits 3. Negotiate with the Seller 4. Time Your Closing 5. Bundle Insurance FAQ Table of Contents How much are closing costs when buying a home in Ontario? Budget 1.5% to 4% of the purchase price. The biggest item is Ontario land transfer tax, doubled in Toronto by the municipal tax. Add legal fees, title insurance, a home inspection and adjustments. First-time buyers get rebates of up to $4,000 provincially and up to $4,475 in Toronto. Best Rates estimates your total exactly. Can closing costs be added to my mortgage? Generally no. Lenders want proof you have about 1.5% of the price saved for closing costs on top of your down payment. Do first-time buyers pay land transfer tax in Ontario? Yes, but the first $4,000 is rebated provincially, which covers the full tax on homes up to $368,000. Many first-time buyers focus on the down payment and forget about closing costs. These additional expenses typically range from 1.5% to 4% of the purchase price—a significant amount that needs to be factored into your home buying budget. Beyond the Down Payment On a $600,000 home, closing costs mean $9,000 to $24,000 on top of your down payment. Land Transfer Tax The biggest closing cost in most provinces: Ontario 0.5% on first $55,000 1% on $55,001 to $250,000 1.5% on $250,001 to $400,000 2% on amounts over $400,000 Toronto adds another 2% First-Time Buyer Rebates Ontario: Up to $4,000 rebate Toronto: Additional $4,475 rebate Check your province's specific rates—they vary significantly. Legal Fees Expect to pay $1,500 to $2,500 for: Title search and examination Document preparation Registration of mortgage Closing adjustments calculation Trust account administration Planning Your Budget? Use our Closing Costs Calculator to get a personalized estimate for your purchase, or get pre-approved and we'll help you plan for all your costs. Title Insurance Protects against: Title defects discovered later Survey issues Fraud Zoning violations Cost: $300 – $500 Most lenders require it, and it protects you too. Home Inspection Essential but technically optional: General inspection: $400 – $600 Specialized inspections: $200 – $400 each Radon testing Mold inspection Pest inspection Septic inspection Never skip the inspection on a resale home. Appraisal Fees Often covered by lender If required: $300 – $500 May need specialty appraiser for unique properties Other Costs to Consider Typical Amount Property insurance (required) $1,000 – $2,500/year Moving expenses $500 – $3,000 Utility deposits $100 – $300 Immediate repairs Varies CMHC premium (if applicable) Added to mortgage Sample Closing Cost Calculation For a 0,000 home in Ontario: Amount Land Transfer Tax $8,475 Legal Fees $2,000 Title Insurance $400 Home Inspection $500 Appraisal $0 (lender covered) Total $11,375 First-time buyer with rebate: $11,375 - $4,000 = $7,375 What's Next Get pre-approved and we'll help you plan your complete home purchase budget, including all closing costs. More on this topic More on this topic What Are Closing Costs? Closing costs are the fees and expenses you pay when finalizing your home purchase, beyond the down payment and mortgage. They typically range from 1.5% to 4% of the purchase price. For a $500,000 home: Budget $7,500 to $20,000 in closing costs. The Major Closing Costs Land Transfer Tax (Provincial) Most provinces charge a tax on property purchases: Ontario: Tax Rate Up to $55,000 0.5% $55,001 - $250,000 1.0% $250,001 - $400,000 1.5% $400,001 - $2,000,000 2.0% Over $2,000,000 2.5% Ontario First-Time Buyer Rebate: Up to $4,000 BC: Tax Rate Up to $200,000 1.0% $200,001 - $2,000,000 2.0% Over $2,000,000 3.0% BC First-Time Buyer Exemption: Full exemption up to $500,000 Know Your True Costs Closing costs can add thousands to your purchase. Use our calculator to budget accurately. Calculate Costs Other provinces vary. Use our Land Transfer Tax Calculator for your specific situation. Toronto Municipal Land Transfer Tax If you're buying in Toronto, you pay an additional municipal tax that mirrors the provincial rates—effectively doubling your land transfer tax. Toronto First-Time Buyer Rebate: Up to $4,475 Legal Fees and Disbursements Your real estate lawyer handles: Title search and registration Document preparation Mortgage registration Trust account management Typical cost: $1,500 - $2,500 (including disbursements) Title Insurance Protects against: Title defects Survey issues Encroachments Fraud Typical cost: $300 - $500 Home Inspection Conducted before closing (or before your offer is firm): Typical cost: $400 - $600 Appraisal Fee Sometimes required by your lender: Typical cost: $300 - $500 (may be covered by lender) Additional Closing Costs Property Tax Adjustment If the seller has prepaid property taxes beyond closing, you reimburse them: Example: Seller prepaid full year, you close July 1st = you pay 6 months of taxes Condo Costs (If Applicable) Status certificate: $100 - $200 Reserve fund contribution: Varies First month's condo fees: Due at closing Utility Hook-Ups Hydro/electricity deposit Water/sewer connection fees Gas connection fees Typical cost: $50 - $200 each Moving Expenses Often overlooked but necessary: DIY move: $200 - $500 (truck rental) Professional movers: $800 - $3,000+ Home Insurance Required before closing: Typical annual cost: $1,000 - $2,500+ First-Time Buyer Programs to Reduce Costs First Home Savings Account (FHSA) Tax-deductible contributions Tax-free growth and withdrawals Up to $40,000 lifetime contribution Can be used for down payment AND closing costs RRSP Home Buyers' Plan Withdraw up to $35,000 from RRSP Repay over 15 years Available for first-time buyers (or after 4 years without owning) Land Transfer Tax Rebates Ontario and Toronto offer rebates for first-time buyers—potentially saving $8,475 combined. Tips to Minimize Closing Costs 1. Compare Legal Fee Quotes Get quotes from 2-3 real estate lawyers. Fees vary significantly. 2. Ask About Lender Credits Some lenders offer cashback or cover certain costs (appraisal, legal fees). 3. Negotiate with the Seller In buyer's markets, sellers may contribute to closing costs. 4. Time Your Closing Close at month-end to minimize property tax adjustments. 5. Bundle Insurance Get quotes for home and auto together for discounts. Ready to Close the Deal? Get a complete breakdown of all costs involved in your home purchase. No surprises at closing. Get Full Estimate Call (416) 822-7357 Frequently Asked Questions How much are closing costs when buying a home in Ontario? Budget 1.5% to 4% of the purchase price. The biggest item is Ontario land transfer tax, doubled in Toronto by the municipal tax. Add legal fees, title insurance, a home inspection and adjustments. First-time buyers get rebates of up to $4,000 provincially and up to $4,475 in Toronto. Best Rates estimates your total exactly. Generally no. Lenders want proof you have about 1.5% of the price saved for closing costs on top of your down payment. Can closing costs be added to my mortgage? Generally no. Lenders want proof you have about 1.5% of the price saved for closing costs on top of your down payment. Do first-time buyers pay land transfer tax in Ontario? Yes, but the first $4,000 is rebated provincially, which covers the full tax on homes up to $368,000. Many first-time buyers focus on the down payment and forget about closing costs. These additional expenses typically range from 1.5% to 4% of the purchase price—a significant amount that needs to be factored into your home buying budget. Planning Your Budget? Use our Closing Costs Calculator to get a personalized estimate for your purchase, or get pre-approved and we'll help you plan for all your costs. What Are Closing Costs? Closing costs are the fees and expenses you pay when finalizing your home purchase, beyond the down payment and mortgage. They typically range from 1.5% to 4% of the purchase price. For a $500,000 home: Budget $7,500 to $20,000 in closing costs.
