Ontario at a glance
- Typical closing costs
- 1.5%–4% of purchase price
- Land transfer tax
- 0.5%–2.5% (tiered)
- First-time buyer LTT rebate
- up to $4,000 (provincial)
- Status certificate (condos)
- max $100 incl. HST
Closing costs are the one-time expenses you pay on top of your down payment to legally complete a home purchase in Ontario. For most buyers they land somewhere between 1.5% and 4% of the purchase price — and the single largest piece is almost always land transfer tax.
Below is a plain-language breakdown of every cost you should budget for, what drives the number up or down, and where first-time buyers can claw thousands of dollars back.
The short answer: On a $700,000 home in Ontario, a typical buyer should set aside roughly $20,000–$25,000 in closing costs — most of it land transfer tax — before any first-time buyer rebate is applied.
#Land transfer tax: the biggest line item
Ontario charges Land Transfer Tax (LTT) on every property purchase, calculated on a sliding scale under the Land Transfer Tax Act:
| Portion of purchase price | Provincial LTT rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 (residential) | 2.5% |
Buying in the City of Toronto? You'll pay a second municipal land transfer tax at similar rates, effectively doubling this cost. Buyers in Mississauga, Waterloo, and the rest of the GTA pay only the provincial tax.
The first-time home buyer rebate
If you're a first-time buyer, Ontario refunds up to $4,000 of provincial LTT — enough to eliminate the tax entirely on a home up to about $368,000, and to reduce it on more expensive homes. To qualify, you must be 18 or older, intend to occupy the home as your principal residence within nine months, and never have owned a home anywhere in the world. Your lawyer claims the rebate at closing so you never front the money.
#Legal fees and disbursements
Your real estate lawyer handles the legal machinery of the deal — reviewing your Agreement of Purchase and Sale, searching title, registering the transfer and mortgage, exchanging funds in trust, and certifying everything closes cleanly. Fees come in two parts:
- Legal fees — the lawyer's professional charge. At Tokas Lex we use transparent flat-rate pricing for most residential closings so there are no surprises.
- Disbursements — out-of-pocket costs the lawyer pays on your behalf: title search fees, government registration charges, software and courier costs, and a title insurance premium.
Always ask for an all-in quote that combines fees, disbursements, and HST. A quote that lists only the "legal fee" can look cheaper while hiding hundreds of dollars in disbursements.
#Title insurance
A one-time title insurance premium (commonly in the range of a few hundred dollars) protects you against title defects, survey problems, fraud, and certain title-related claims that a search might not reveal. It's standard on virtually every Ontario residential purchase and is usually arranged by your lawyer at closing.
#Statement of adjustments
At closing, your lawyer prepares a Statement of Adjustments that reconciles costs the seller has prepaid or owes. Common adjustments include:
- Property taxes the seller paid beyond the closing date (you reimburse them)
- Prepaid utilities or fuel (for example, an oil tank left full)
- For new builds, HST, development levies, and Tarion enrolment
- For condos, the monthly common expense (maintenance) fee for the closing month
#Condo buyers: the status certificate
If you're buying a condominium, your lawyer should review the status certificate — a package disclosing the corporation's finances, reserve fund, rules, insurance, and any special assessments or litigation. The condo corporation may charge up to $100 (including HST) for it under the Condominium Act, and must deliver it within 10 days. It's a small cost that can reveal expensive problems before you're committed. (See our guide to what your lawyer checks in a status certificate.)
#Other costs buyers forget
- Mortgage-related costs — appraisal, and CMHC mortgage default insurance if your down payment is under 20% (added to your mortgage, plus 8% PST payable at closing in Ontario).
- Home inspection — typically a few hundred dollars, paid before closing.
- Property insurance — lenders require proof of home insurance effective on the closing date.
- Moving costs and immediate repairs.
#A sample budget
For a $700,000 resale home in Mississauga with a 20% down payment, a buyer who is not a first-time buyer might budget approximately:
| Cost | Estimate |
|---|---|
| Provincial land transfer tax | ~$10,475 |
| Legal fees, disbursements & HST | ~$1,800–$2,500 |
| Title insurance | ~$400 |
| Property tax / utility adjustments | varies |
| Approximate total | ~$13,000–$14,000 |
A first-time buyer would subtract up to $4,000 from that figure thanks to the LTT rebate.
#How a real estate lawyer keeps closing costs predictable
The biggest closing-cost mistake is being surprised. A good real estate lawyer gives you an all-in quote up front, claims every rebate you're entitled to, scrutinizes the Statement of Adjustments so you don't overpay the seller, and flags title or condo issues before they become your problem.
If you're buying, selling, or refinancing anywhere in Ontario, contact Tokas Lex for a clear, flat-rate quote before you sign.
This article provides general information about Ontario law and is not legal advice. Costs and figures are estimates that change over time and vary by transaction. For advice on your specific purchase, please consult a lawyer.
Frequently asked questions
Closing costs in Ontario typically run 1.5% to 4% of the purchase price. The largest component is land transfer tax (0.5%–2.5% on a sliding scale), followed by legal fees and disbursements, title insurance, and adjustments. First-time buyers can rebate up to $4,000 of provincial land transfer tax.
There is no general exemption, but first-time home buyers can claim a rebate of up to $4,000 of provincial land transfer tax — which eliminates the tax on homes up to about $368,000. You must be 18+, occupy the home as your principal residence within nine months, and never have owned a home anywhere.
Most Ontario real estate lawyers charge a flat legal fee plus disbursements (title search, registration, software and title insurance). Always ask for an all-in quote combining fees, disbursements and HST so you can compare accurately. Tokas Lex offers transparent flat-rate pricing for most residential closings.
Yes. First-time buyers still pay legal fees, title insurance and adjustments, but they can rebate up to $4,000 of provincial land transfer tax, which significantly reduces or eliminates that line item depending on the home's price.
Have a Real Estate Law question?
Speak directly with Anantika Tokas. Consultations are available in Mississauga, Waterloo, or virtually across Ontario.
Related practice area: Real Estate Law
