What closing costs should I expect when buying a home in Ontario?

Closing costs are the fees and taxes you pay on top of your purchase price when a real estate deal closes. In Ontario, buyers typically pay land transfer tax, legal fees, title insurance, home inspection fees, and land registration charges, among other items.

Land transfer tax is often the biggest single closing cost. Ontario charges a provincial tax on every property purchase, and if you buy in Toronto, the City of Toronto adds its own municipal land transfer tax on top. First-time buyers may qualify for a rebate of up to $4,000 on the provincial tax.

Legal fees vary by firm and deal complexity, but budgeting $1,500–$2,500 for lawyer fees plus disbursements is a reasonable starting point. Title insurance typically costs a few hundred dollars as a one-time premium. As a rule of thumb, many buyers budget 1.5%–4% of the purchase price for total closing costs, but the actual amount depends on your price, municipality, and deal specifics. Speak with your lawyer early so there are no surprises on closing day.