What Ontario Closing Costs Actually Include
Most buyers budget for the down payment and forget about closing costs. For a typical GTA purchase, closing costs add 2%–4% of purchase price on top of your down payment. On an $800,000 home that’s $16,000–$32,000 in additional cash required on closing day.
The biggest line item is land transfer tax — provincial LTT on every Ontario purchase, plus Toronto MLTT if you’re buying within the City of Toronto boundary. First-time buyers receive rebates of up to $4,000 (Ontario) and $4,475 (Toronto) — applied automatically in this calculator.
The Costs Most Buyers Miss
Two closing costs that regularly catch Ontario buyers off guard: the CMHC PST and the property tax adjustment. If your down payment is under 20%, Ontario charges 8% PST on your CMHC premium — payable in cash at closing, not added to your mortgage. On a $600,000 insured mortgage with a $18,600 CMHC premium, that’s $1,488 in cash on top of everything else.
The property tax adjustment reimburses the seller for property taxes prepaid beyond your closing date. On a $800,000 home in Vaughan with a $6,200 annual tax bill, closing mid-year could mean a $1,500–$2,500 adjustment payable at closing.
Ontario Closing Costs — Common Questions
Closing Cost FAQ — What Ontario Buyers Actually Pay
LTT, legal fees, CMHC PST, property tax adjustments — the closing costs that surprise Ontario buyers most, answered plainly.
Budget 2%–4% of purchase price for closing costs. For an $800,000 home outside Toronto: approximately $18,000–$22,000. In Toronto: add $8,000–$12,000 for MLTT. First-time buyer rebates reduce LTT significantly — the calculator applies these automatically.
No — Ontario closing costs are paid in cash on closing day and cannot be added to your mortgage. Some lenders offer cash-back mortgages (1%–5% of mortgage at funding) that buyers use to offset closing costs, but the cash-back is priced into your rate as a premium.
Yes — Ontario law requires a real estate lawyer for every property purchase. Legal fees ($1,500–$2,500) cover title transfer, mortgage registration, and disbursements. Choose your lawyer before making an offer so they’re available for the conditional period.
Not legally required — but strongly recommended. A $500–$700 inspection can identify structural, mechanical, or environmental issues worth tens of thousands of dollars. In 2026’s more balanced market, most sellers accept conditional offers with an inspection condition.
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