Closing Costs in Ontario: What to Budget For (2026)

Most first-time buyers focus all their savings on the down payment — and then get caught off guard by closing costs. These are the fees and charges due on possession day, on top of your down payment, and they can add up faster than people expect. This guide breaks down every closing cost you should plan for in Ontario, with real numbers and a worked example so there are no surprises on closing day.

First-time buyer? You qualify for the LTT rebate — up to $4,000 off your closing costs. Check if you qualify →

The Rule of Thumb

Budget 1.5% to 4% of the purchase price for closing costs, on top of your down payment. On a $650,000 home, that’s roughly $9,750 to $26,000. The wide range exists because some costs are fixed (legal fees), some scale with purchase price (land transfer tax), and some depend on your down payment size (CMHC insurance tax). The sections below explain each cost clearly. At the end, there’s a full worked example so you can see how it all adds up.

Land Transfer Tax (Ontario)

This is typically the largest closing cost. Ontario charges a provincial land transfer tax (LTT) based on the purchase price, calculated in brackets:

Purchase Price Portion	Tax Rate
First $55,000	0.5%
$55,001 – $250,000	1.0%
$250,001 – $400,000	1.5%
$400,001 – $2,000,000	2.0%

First-time buyers get a rebate of up to $4,000, applied automatically at closing by your lawyer. On homes priced up to about $368,333, the rebate covers the full LTT. Above that, you pay only the amount exceeding the rebate. Use our Ontario LTT calculator to see your exact number →

Legal Fees

You need a real estate lawyer to close any home purchase in Ontario. Expect to pay $1,500 to $2,500 in legal fees, depending on the complexity of the transaction and the firm you use. Your lawyer handles the title search, reviews the purchase agreement, registers the transfer of ownership, and handles the flow of funds on closing day. This is not optional and not a place to cut corners — your lawyer is protecting your largest financial asset.

Title Insurance

Title insurance protects against title defects, survey issues, and certain fraud scenarios. It’s typically $200 to $400 for a residential purchase and is usually included in your lawyer’s closing package. Most lawyers order this automatically. If yours doesn’t mention it, ask.

Home Inspection

A home inspection costs $400 to $600 and is conducted before you firm up your offer, not at closing. It’s technically optional, but strongly recommended — especially for resale homes. A good inspector can identify issues that affect your negotiating position or flag problems that would cost significantly more to fix after the fact. This cost is paid directly to the inspector at the time of the inspection, not at closing.

Property Tax Adjustment

Here’s one most buyers miss entirely. Property taxes in Ontario are typically paid a few months in advance. If the seller has pre-paid property taxes beyond your closing date, you owe them a reimbursement for the days you’ll be the owner. For example, if property taxes are $6,000/year and the seller has paid through the end of June, but you close on May 1st, you’d owe the seller roughly two months of taxes — approximately $1,000. This amount varies with every transaction and is calculated precisely by your lawyer. Budget a few hundred to a couple thousand dollars depending on timing.

CMHC Mortgage Default Insurance — Provincial Tax

If your down payment is less than 20% of the purchase price, you’re required to have CMHC mortgage default insurance (also known as CMHC insurance or mortgage default insurance). The premium is:

Down Payment	Premium (% of mortgage)
5% – 9.99%	4.00%
10% – 14.99%	3.10%
15% – 19.99%	2.80%

The good news: the insurance premium itself is rolled into your mortgage — you don’t pay it out of pocket at closing. The part people miss: Ontario charges 8% PST on that premium, and that tax is due at closing, in cash, not rolled into the mortgage. On a $650,000 home with 10% down ($65,000), the mortgage is $585,000. The CMHC premium at 3.10% is $18,135. Ontario’s 8% PST on that premium is $1,451 — due on closing day.

Moving Costs

Budget $1,000 to $3,000 for moving, depending on how far you’re moving, how much stuff you have, and whether you hire movers or rent a truck. This isn’t technically a closing cost, but it’s cash you need on or around the same day.

What First-Time Buyers Most Often Forget

After doing this with a lot of first-time buyers, these are the three costs that consistently catch people off guard:

1. The CMHC provincial tax — most buyers know about the insurance premium, but don’t know the PST on it is due in cash at closing
2. The property tax adjustment — varies every transaction, often overlooked entirely
3. Title insurance — small, but worth knowing it’s there

Worked Example: $650,000 Home, 10% Down, First-Time Buyer

Here’s a full closing cost breakdown for a realistic Halton Region purchase:

Cost Item	Amount	Notes
Land Transfer Tax (Ontario)	$9,475	Full LTT calculated on brackets
First-Time Buyer Rebate	–$4,000	Applied at closing
Net Land Transfer Tax	$5,475
Legal Fees	$2,000	Mid-range estimate
Title Insurance	$300	Typically included in legal package
Property Tax Adjustment	$800	Estimate — depends on closing date
CMHC PST (Ontario 8%)	$1,451	On $18,135 CMHC premium
Home Inspection	$500	Paid before closing
Moving Costs	$1,500	Estimate
Total Closing Costs	~$12,026	Approx 1.85% of purchase price

Down payment (10%): $65,000 Closing costs: ~$12,026 Total cash needed at closing: ~$77,026 Note: the CMHC premium of $18,135 is added to the mortgage — it’s not in this cash total. Only the PST portion ($1,451) comes out of pocket.

Frequently Asked Questions

Q: Do I need all of this cash on closing day? Yes — closing costs are due on the day of possession. Your lawyer will confirm the exact amount a few days before closing so you can arrange the wire transfer or bank draft. Q: Can any closing costs be rolled into the mortgage? The CMHC premium (not the PST) is added to the mortgage balance. Everything else — legal fees, LTT, property tax adjustment, PST — comes out of your own funds on closing day. Q: Does my real estate agent charge a buyer’s fee? In Ontario, the seller typically pays both agents’ commissions. As a buyer, you generally don’t pay your agent directly. Confirm the arrangement in writing with your agent before you start. Q: Are closing costs the same for new construction? Not quite. New builds have additional costs including HST (partially rebated for principal residences), development charges, and sometimes Tarion enrollment fees. New construction closing costs deserve their own guide.

The Bottom Line

Closing costs in Ontario are real, they’re significant, and they’re due in cash on possession day. Budget 1.5–4% of the purchase price beyond your down payment, get a precise estimate from your lawyer a few weeks before closing, and make sure the CMHC provincial tax and property tax adjustment are on your radar.