Closing Costs in Ontario 2026 — Every Fee You Need to Know Before Buying

Most buyers in Ontario spend months worrying about their down payment and almost no time thinking about closing costs. Then, a week before they get their keys, their lawyer sends them a statement with numbers they were not expecting. That is a stressful moment — and it is completely avoidable.

Closing costs are separate from your down payment, paid in cash before you receive your keys. Here is exactly where the money goes, broken down fee by fee for a typical Ontario purchase.

Typical Closing Costs

1.5%–4%

of your purchase price, paid on top of your down payment — in cash, before you get your keys.

On a $700,000 home, that's $10,500–$28,000 sitting outside your mortgage.

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Why Buyers Forget Closing Costs

Closing costs are the one-time fees and taxes required to legally transfer ownership of a property into your name. They are separate from your down payment, and — this is the part people miss — your mortgage lender does not cover them. You need this money in liquid savings, in your account, ready to go.

The reason buyers forget them is simple: nobody talks about them until it is too late. Your listing search shows you a price. Your lender approves you for a number. The whole conversation is about the purchase. By the time you are three weeks from closing, you are emotionally committed to the house and the closing cost bill lands like a surprise.

The Fix

Budget for closing costs before you even make an offer — not after. Here is exactly what you're actually paying for.

Land Transfer Tax — Provincial + Toronto

The Ontario land transfer tax is a marginal tax, and each portion of your home's value is taxed at a unique rate. It works similarly to income tax brackets — the rate applies only to the slice of your purchase price that falls within each tier, not to the entire amount.

For a $700,000 home purchased outside of Toronto, your Ontario land transfer tax comes to approximately $9,475.

If you are buying within the City of Toronto — any postal code starting with "M" — you pay a second Municipal Land Transfer Tax on top of the provincial one, effectively doubling that bill to approximately $18,950 before rebates. That is a difference of nearly $9,500 based purely on which side of the city boundary you are on.

First-Time Buyer Rebates

Ontario offers a provincial LTT rebate of up to $4,000. If you buy within Toronto, you may also qualify for a municipal rebate of up to $4,475. Your lawyer applies these automatically at closing — you do not need to file anything separately. Make sure your lawyer knows you are a first-time buyer before closing day.

Legal Fees and Title Insurance

In Ontario, hiring a real estate lawyer is mandatory for property transactions. Unlike some other provinces where notaries can handle closings, Ontario requires a licensed lawyer to oversee the title transfer and mortgage registration.

Legal fees typically range from $1,100 to $1,800 for a standard transaction. That figure includes the lawyer's professional fee plus disbursements — the third-party expenses your lawyer pays on your behalf, such as title search costs, government registration fees, and any adjustments owed to the seller.

HST applies to the professional portion of the legal fee, not to disbursements like land transfer tax. When you get a quote from a lawyer, ask for a full all-in estimate including disbursements — numbers that look low sometimes exclude these line items.

Title Insurance

Purchased through your lawyer at the same time, title insurance protects against title defects, fraud, and survey issues, and virtually all lenders require it. The cost runs roughly $200 to $400. It has largely replaced the need for a new survey, saving buyers $1,000 or more while providing broader protection.

Home Inspection Cost

A home inspection gives you an independent, professional assessment of the property's condition before you commit. Fees typically range from $300 to $600, depending on the size of the home and the inspector you hire.

Some buyers in competitive markets waive their inspection condition to make their offer more attractive. That is a personal decision, but it is worth understanding what you are giving up. An inspector does not just look for cosmetic issues — they check the roof, electrical, plumbing, HVAC, foundation, and insulation.

For newer homes or recently renovated properties, some buyers skip the inspection. For anything over 20 years old, skipping it is a gamble most experienced agents would not recommend.

CMHC Mortgage Default Insurance

If your down payment is less than 20% of the purchase price, you are required by federal law to carry mortgage default insurance. In Canada, this is most commonly called CMHC insurance, after the Canada Mortgage and Housing Corporation, though Sagen and Canada Guaranty also offer equivalent products.

The premium is calculated as a percentage of your total mortgage amount:

On a $700,000 home with 5% down ($35,000), your insured mortgage is $665,000 and your CMHC premium is $26,600. That amount is added directly to your mortgage — you do not pay it out of pocket at closing.

The Catch

Ontario charges PST on the CMHC premium, and that portion must be paid in cash at closing. On a $26,600 premium, the PST works out to roughly $2,128. CMHC insurance protects the lender if you stop making payments — the cost is entirely borne by the buyer.

Total Estimate on a $700K Ontario Home

Here is how the numbers stack up for a typical Ontario resale purchase at $700,000, with 10% down, outside of Toronto:

That works out to roughly 1.9% to 2.1% of the purchase price. First-time buyers who qualify for the provincial LTT rebate of $4,000 bring that number down to approximately $9,400 to $10,900.

If you are buying in Toronto with the same numbers, add roughly $9,475 for the municipal LTT before rebates — or subtract up to $8,475 if you qualify for both first-time buyer rebates.

Key Takeaways

FAQ — Closing Costs in Ontario 2026

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