Closing Costs in Ontario
Every dollar you'll spend at closing — and how to plan for them.
Land transfer tax (the biggest line item)
Ontario's provincial LTT runs roughly 0.5–2.5% of purchase price on a sliding scale. Toronto adds a municipal LTT — roughly doubling the bill within Toronto's boundaries. First-time buyers get up to $4,000 provincial and $4,475 Toronto rebates.
Legal fees
Real estate lawyer costs $1,500–$2,500 including disbursements for a standard purchase. Title insurance is usually rolled into this estimate. Higher-value or non-standard files (mixed use, multi-unit) run more.
Home inspection and appraisal
Home inspection: $400–$700 for a typical residential property. Appraisal: usually covered by the lender for prime files, $400–$600 if you're paying directly (common with switches and refinances).
Title insurance and other lender requirements
Most lenders require title insurance ($350–$500 typical) and proof of homeowners' insurance starting the day of closing. New-build buyers face additional Tarion enrolment costs (typically built into the purchase price).
Adjustments and a realistic total
Add up: LTT + legal + inspection + insurance + adjustments (property tax and utilities) + moving. Plan for 1.5–4% of purchase price as your total closing cost budget — higher within Toronto due to municipal LTT.
Have questions about your situation?
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