Quick answer: Closing costs on a resale home in Ontario usually add up to about 1.5–4% of the purchase price. The biggest cost is land transfer tax, and Toronto buyers pay it twice, provincial and municipal. Other costs:
- Legal fees
- Title insurance
- A home inspection
- Property tax and utility adjustments
- The 8% PST on mortgage default insurance, if you put less than 20% down
First-time buyers can get up to $4,000 back on Ontario land transfer tax, plus up to $4,475 in Toronto.
Part of our First-Time Buyer's Guide to Buying a Resale Home in Ontario.
What are the closing costs on a resale home?
| Cost | Typical amount | When paid |
|---|---|---|
| Ontario land transfer tax | About 1–2% of the price | Closing |
| Toronto municipal land transfer tax | About the same as Ontario's (Toronto only) | Closing |
| Legal fees and disbursements | About $1,500–$2,500 | Closing |
| Title insurance | About $300–$600 | Closing |
| Home inspection | About $400–$700 | Before firm |
| Condo status certificate | Up to $100 | Before firm |
| Appraisal (if lender charges) | About $300–$500 | Before firm |
| PST on CMHC insurance (under 20% down) | 8% of the premium | Closing, in cash |
| Property tax and utility adjustments | Varies | Closing |
| Moving, home insurance, set-up | Varies | Around closing |
Typical ranges only. Get quotes from your lawyer and service providers.
How much is land transfer tax in Ontario?
Ontario's land transfer tax is charged in brackets:
| Portion of price | Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 – $250,000 | 1.0% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
In the City of Toronto, the municipal land transfer tax uses the same rates up to $2 million (with higher rates on luxury homes), so Toronto buyers pay roughly double.
Land transfer tax examples
| Price | Ontario LTT | First-time buyer (outside Toronto) | Toronto, first-time buyer (both taxes) |
|---|---|---|---|
| $600,000 | $8,475 | $4,475 | $8,475 |
| $800,000 | $12,475 | $8,475 | $16,475 |
| $1,000,000 | $16,475 | $12,475 | $24,475 |
| $1,200,000 | $20,475 | $16,475 | $32,475 |
Calculated using the rates above and the maximum first-time buyer refunds ($4,000 Ontario, $4,475 Toronto). Confirm your exact amount with your lawyer.
The CMHC insurance PST trap
If you put less than 20% down, your mortgage needs default insurance (from CMHC, Sagen or Canada Guaranty). The premium itself is added to your mortgage, but Ontario charges 8% PST on the premium, and you must pay it in cash at closing.
Example: an $800,000 home with the minimum down payment ($55,000) has a $745,000 mortgage. At a 4% premium, that's $29,800 added to the mortgage, plus about $2,384 PST due at closing.
What is the statement of adjustments?
Your lawyer prepares it before closing. It balances costs the seller has prepaid, such as property tax or condo fees, so you reimburse the seller for the days after closing. It also shows your deposit as a credit and the balance you owe.
Closing cost checklist
- ☐ Estimate land transfer tax (and Toronto MLTT if applicable)
- ☐ Confirm first-time buyer eligibility for LTT refunds
- ☐ Get a legal fee quote, including disbursements and title insurance
- ☐ Budget for inspection, appraisal and status certificate
- ☐ Set aside cash for PST on mortgage insurance, if under 20% down
- ☐ Arrange home insurance before closing
- ☐ Keep a cushion of about 1.5% of the price for adjustments and surprises
Related reading: Down payment guide · First-time buyer programs · Closing costs on new construction
Frequently asked questions
How much are closing costs for a first-time buyer in Ontario?
Usually about 1.5–4% of the price. On an $800,000 home outside Toronto, a first-time buyer would pay about $8,475 in land transfer tax after the refund, plus legal fees, title insurance and other costs.
Do first-time buyers pay land transfer tax in Ontario?
Yes, but they can get a refund of up to $4,000 on the Ontario tax and up to $4,475 on Toronto's municipal tax. On homes up to about $368,000, the Ontario refund covers the full tax.
Can closing costs be added to my mortgage?
Generally no. Lenders require you to show you have about 1.5% of the price in cash for closing costs. The mortgage insurance premium is added to the mortgage, but the PST on it is not.
Who pays the realtor commission when buying a resale home?
Your buyer representation agreement sets out how your agent is paid. Commonly, the seller's brokerage shares commission with the buyer's brokerage, but terms vary. Read the agreement before you sign.
When are closing costs paid?
Most are paid through your lawyer on or just before closing day. The inspection and appraisal are paid earlier.
About the author: Ola Otubu is a REALTOR® with Realty ONE Group Reveal, Real Estate Brokerage, and the founder of Buyprecon.ca. He represents buyers of new construction and resale homes across Ontario.
This article is general information, not legal or tax advice. Figures are estimates. Confirm your costs with your lawyer and lender. Sources: Government of Ontario (land transfer tax); City of Toronto (MLTT); CMHC.
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