The Three Buckets of Cash You Need to Close
Bucket 1 — Down payment: 5%–20% depending on purchase price (5% on first $500K, 10% on $500K–$1.5M, 20% above $1.5M). Bucket 2 — Land Transfer Tax: provincial LTT on every Ontario purchase, plus Toronto MLTT if buying within the City of Toronto. First-time buyer rebates up to $8,475 applied automatically. Bucket 3 — Closing costs: legal fees, title insurance, home inspection, CMHC PST if applicable, property tax adjustments. Typically $5,000–$12,000.
Most buyers prepare Bucket 1 and forget Buckets 2 and 3. This calculator combines all three into one number.
Ontario vs. Toronto — Why Location Changes the Number
Buying the same $800,000 property in Vaughan versus Toronto produces very different all-in cash requirements. Vaughan: Ontario LTT ~$12,475 (minus $4,000 rebate for first-time buyers). Toronto: Ontario LTT ~$12,475 + Toronto MLTT ~$11,975 = ~$24,450 combined (minus up to $8,475 in rebates for first-time buyers).
The municipal boundary difference on an $800,000 purchase for a non-first-time buyer: approximately $12,000 in additional cash required at closing. Use our LTT Calculator to check any specific address.
Ontario Home Purchase Costs — Common Questions
Purchase All-In FAQ — Total Cash to Close in Ontario
Down payment, LTT, closing costs, deposits — the complete cash picture for buying a home in Ontario, including the questions most buyers only ask after the fact.
For a $700,000 home outside Toronto with 10% down (first-time buyer): approximately $87,000 total — $70,000 down payment + $6,475 LTT after rebate + $10,000 in closing costs. In Toronto: add approximately $5,500 for Toronto MLTT after rebate = ~$92,500 total.
The deposit (typically 5% submitted with your offer) is part of your down payment — not an additional cost. On a $700,000 purchase with 10% down, you submit a $35,000 deposit at acceptance and wire the remaining $35,000 plus closing costs to your lawyer before closing day.
FHSA and HBP withdrawals go toward your down payment — not closing costs. Closing costs must be paid from separate cash savings or chequing. First-time buyers should plan their FHSA/HBP withdrawal to cover the down payment, then ensure additional savings cover closing costs separately.
If the deal falls through due to an unfulfilled financing or inspection condition: your deposit is returned in full within 10 days. If you waive conditions and then try to back out: the deposit can be forfeited and the seller may pursue additional damages. Never waive a financing condition without a firm commitment letter from your lender.
Still Have Questions?
Not seeing your exact situation here? Let’s take a look at your numbers and walk through your options step by step.
