The Real Closing Costs When You Buy a Home in Ontario

Almost every first-time buyer in the GTA budgets carefully for the down payment and then gets surprised in the last two weeks before closing. Closing costs in Ontario typically run 1.5% to 4% of the purchase price, and in Toronto specifically they land at the top of that range because the city levies its own land transfer tax on top of the provincial one.

Land transfer tax is the big one

Ontario charges a marginal land transfer tax: 0.5% on the first $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2,000,000, and 2.5% above that on properties with one or two single-family residences. A property inside the City of Toronto is charged a municipal land transfer tax on top, which roughly doubles the bill. On a $1,000,000 home that is $16,475 provincially and the same again municipally inside Toronto — about $32,950 in land transfer tax alone.

If you are buying above $3 million in Toronto, the maths changed

As of 1 April 2026 the City of Toronto applies additional luxury brackets to its municipal land transfer tax on residential properties above $3,000,000, rising in steps to 8.6% on the highest portion. On an expensive Toronto purchase this is a very large number, and it is the single most common thing buyers at that level have not budgeted for. It applies to the municipal tax only — the provincial rates are unchanged — and only inside Toronto, not in Oakville, Vaughan, or the rest of the GTA.

First-time buyer rebates

Ontario refunds up to $4,000 of the provincial tax, which covers it entirely up to about $368,000. Toronto refunds up to $4,475 of the municipal tax, covering it fully up to $400,000. Buying in Toronto you can claim both, for up to $8,475. To qualify you must be at least 18, occupy the home as your principal residence, and never have owned a home anywhere in the world. Both are claimed at closing through your lawyer rather than filed afterwards, so make sure your lawyer knows you qualify before the file closes.

Legal fees and disbursements

Budget $1,800 to $2,800 for a straightforward residential purchase, including title search, registration, and the lawyer's fee. A condo purchase sits at the higher end because of the status certificate review.

Title insurance

Usually $300 to $600 as a one-time premium. Most lenders require it, and it is cheaper than the survey it replaces.

Adjustments

You reimburse the seller for anything they prepaid past the closing date — most often property taxes, and on a condo, that month's maintenance fee. On a mid-year closing this can be $1,500 or more.

What buyers forget

Home inspection ($500–$800), moving costs, and the first month of utilities and insurance. If the property is new construction, add HST considerations and development levies, which are a separate conversation entirely.

The practical takeaway: on a $1,000,000 Toronto purchase, land transfer tax alone is about $32,950, and with legal fees, title insurance, and adjustments you should plan for roughly $37,000 in closing costs on top of your down payment. Outside Toronto, where only the provincial tax applies, closer to $20,000. Have the figure confirmed in writing by your lawyer before you waive conditions.