Every year, thousands of Ontario home buyers get to the closing table and are surprised by costs they didn't budget for. Closing costs in Ontario typically run 1.5% to 4% of the purchase price — on top of your down payment. On a $700,000 home, that's $10,500 to $28,000 in cash you need ready before you get the keys.

Here is every cost you should expect, in the order your lawyer will actually bill them.

1.5-4%
Of Purchase Price
$10.5K-$28K
On a $700K Home
$4,000
First-Time Buyer LTT Rebate

1. LAND TRANSFER TAX (THE BIG ONE)

Ontario charges a provincial Land Transfer Tax (LTT) on every property purchase, calculated on a sliding scale based on purchase price. On a $700,000 home, the provincial LTT works out to approximately $9,475.

If you're buying in Toronto, you pay a second, municipal LTT on top — roughly doubling your land transfer tax bill to around $18,950 on the same $700K home.

✅ First-Time Buyer Rebate

Ontario rebates up to $4,000 of provincial LTT for first-time buyers — effectively eliminating it on homes up to roughly $368,000. Toronto offers an additional municipal rebate up to $4,475. Your lawyer applies this automatically at closing; you don't need to file separately.

2. LEGAL FEES

You are required to have a real estate lawyer in Ontario — it's not optional. Budget $1,500 to $2,500 for legal fees, which covers title search, drafting the closing documents, registering the transfer, and disbursements (courier fees, registration fees, etc.).

Some lawyers advertise "$799 closing" but disbursements often add $500-$800 on top, so always ask for the all-in number upfront.

3. TITLE INSURANCE

Title insurance protects you against issues with the property's legal title — fraud, undisclosed liens, survey errors. It's a one-time premium, typically $300 to $500, and almost every lender requires it as a condition of the mortgage.

4. HOME INSPECTION

While not technically a "closing" cost (it happens before your offer firms up), a home inspection is $400 to $600 and is one of the best-value expenses in the entire transaction. In the current buyer's market, there's no reason to skip it.

5. CMHC / MORTGAGE DEFAULT INSURANCE

If your down payment is less than 20% of the purchase price, your lender requires mortgage default insurance (commonly called CMHC insurance, though Sagen and Canada Guaranty also offer it). This premium is calculated as a percentage of your mortgage amount — ranging from 0.6% to 4% depending on your down payment size — and is typically added to your mortgage rather than paid in cash at closing.

📊 Example: $700,000 Home, 10% Down

Down payment: $70,000 | Mortgage amount: $630,000 | CMHC premium (~2.4%): ~$15,120 added to mortgage | Land transfer tax: ~$9,475 (or less with first-time buyer rebate) | Legal fees: ~$2,000 | Title insurance: ~$400 | Inspection: ~$500 | Total cash needed at closing (beyond down payment): ~$11,875-$15,875

6. ADJUSTMENTS

On closing day, costs like property tax, condo fees, heating oil, and utilities are "adjusted" between buyer and seller based on the closing date. If the seller prepaid property tax for the year, you reimburse them for the portion covering your ownership period. These adjustments are usually a few hundred dollars either way, calculated by your lawyer.

7. MOVING COSTS

Not a "closing cost" technically, but real money you'll spend in the same window: movers ($800-$2,500 depending on distance and home size), connection fees for utilities and internet, and any immediate repairs or cleaning. Budget at least $1,000-$2,000 for this.

HOW TO REDUCE YOUR CLOSING COSTS

  • Maximize your down payment to 20%+ if possible — eliminates CMHC insurance entirely, saving thousands.
  • Claim every rebate you qualify for — first-time buyer LTT rebate is the single biggest line item you can reduce.
  • Get a buyer rebate. At onepercentsold.ca, our up to 50% buyer cash-back rebate (capped at $25,000) can be applied directly toward your closing costs through your lawyer's trust account — turning a cost center into found money.
  • Shop your lawyer. Legal fees vary by $500-1,000 between firms for the same work. Get two quotes.

⚠️ Budget Buffer

Always keep an extra $2,000-$3,000 buffer beyond your estimated closing costs. Adjustments, last-minute repairs, and unexpected fees are common. Running short of cash at closing can delay your possession date.

BUYING IN ONTARIO? GET CASH BACK AT CLOSING.

Our up to 50% buyer rebate can be applied directly to your closing costs — real savings when you need them most.

See the Buyer Rebate Free Consultation Call Aakash — 705-970-7654