Buying · September 29, 2026 · 4 min read
Closing costs in Ontario: what to budget for beyond the down payment
The down payment isn’t the only cheque you’ll write. Here are the costs that come due on closing, so none of them catch you off guard.
Most buyers plan carefully for the down payment, then get caught off guard by the costs due on closing day. None of them are mysterious. They just need to be in the budget from the start.
Land transfer tax
Ontario charges land transfer tax on a home purchase, based on the price. If you buy in the City of Toronto, there’s a municipal land transfer tax on top of the provincial one. First-time buyers may qualify for a refund on part of it, so ask your lawyer to check.
Legal fees and title insurance
Your lawyer charges a fee for the purchase, plus disbursements such as searches and registration. Most buyers also buy a title insurance policy, which your lawyer arranges.
Adjustments
If the seller has prepaid property taxes or certain utilities past your closing date, you pay them back for your share. Your lawyer works this out on the statement of adjustments.
Mortgage-related costs
- Mortgage default insurance, if your down payment is under 20%. The premium is usually added to your mortgage, but Ontario charges sales tax on it, and that tax is due on closing.
- An appraisal fee, if your lender asks for one.
- Your home inspection, paid before your conditions come off.
Buying new? A few extras
New homes and condos can carry extra charges on closing, depending on the agreement, such as utility connection fees or development charge adjustments. Read the schedules carefully, or better, have your lawyer review the agreement before you sign.
A good budget has room for the costs nobody puts on the listing.
Moving, a little set aside for repairs and the first round of furniture come on top. We’ll help you build a realistic budget before you start making offers.
