Closing costs in Ontario: what to budget beyond the down payment

Your down payment isn’t the only money you need on closing day. Many first-time buyers are surprised by the costs below. A common planning figure is 1.5% to 4% of the purchase price, but ask your lawyer for an estimate on your purchase.

This guide is general information as of November 2026, not legal, tax, immigration, mortgage or financial advice. Rules change, so confirm your situation with a qualified professional.

Land transfer tax

Ontario charges land transfer tax on almost every purchase, and it is one of the largest closing costs. In the City of Toronto you pay a second, municipal land transfer tax as well.

First-time buyers may qualify for refunds:

• Ontario: up to $4,000, for citizens and permanent residents who have never owned a home anywhere in the world and who move in within nine months
• Toronto: a separate municipal rebate. The amount has been under review, so ask your lawyer for the current figure.

If you have owned a home in another country, you may not qualify for the Ontario refund. Tell your lawyer early.

Other common costs

• Legal fees and disbursements: your real estate lawyer handles the transfer
• Title insurance
• Home inspection and possibly an appraisal
• Provincial sales tax on mortgage default insurance: if you put down less than 20%, Ontario’s 8% tax on the premium is usually due at closing, in cash
• Property tax and utility adjustments: you repay the seller for costs they have prepaid
• HST: can apply to newly built homes, so read the agreement carefully
• Home insurance, moving costs and setup

Programs that may help

Ask your lender or accountant about the First Home Savings Account (FHSA) and the RRSP Home Buyers’ Plan, including whether you qualify as a newcomer.

Plan with Lena

Book a free consultation and Lena will walk you through the steps. Also read our guide to using savings from abroad.