Closing Costs in Ontario: The Complete Breakdown

You've saved your down payment and won the offer — but there's one more number that catches buyers off guard: closing costs. In Ontario, these one-time fees typically add up to 1.5% to 4% of the purchase price, and most of them are due on closing day. This guide breaks down exactly what you'll pay, how much to budget, and where you can legally save.

Key takeaways

• Budget roughly 1.5%–4% of the purchase price for closing costs in Ontario.
• Land transfer tax is usually the single largest closing cost — and Toronto buyers pay it twice.
• First-time buyers can claim land transfer tax rebates of up to $4,000 (provincial) and $4,475 (Toronto).
• A real estate lawyer is mandatory in Ontario — budget $1,100–$2,500.
• HOMEH gives eligible buyers the industry's highest Cashback Rebate, which can offset your closing costs entirely.

What are closing costs?

Closing costs are the one-time fees you pay to finalize a home purchase — separate from your down payment. They cover government taxes, legal work, and due-diligence checks that transfer the property into your name. Unlike your mortgage, these are paid up front, so they need to be in your bank account before closing day.

As a rule of thumb, set aside 1.5% to 4% of the purchase price. The exact figure depends mostly on where you buy (Toronto is the most expensive) and whether you qualify as a first-time buyer. Want a precise number for your situation? Run it through the HOMEH Closing Cost Calculator.

Land transfer tax: the big one

Ontario charges a provincial Land Transfer Tax (LTT) on every home purchase, calculated on a sliding scale. If you buy in the City of Toronto, you also pay a second, municipal land transfer tax of roughly the same amount — effectively doubling this cost. Learn the mechanics in our guide to Ontario land transfer tax and the Toronto municipal land transfer tax.

First-time buyer? Claim your rebate

First-time buyers get a provincial LTT rebate of up to $4,000, and Toronto first-time buyers get an additional municipal rebate of up to $4,475. See the full list of incentives in our land transfer tax rebate guide.

The other closing costs

Beyond land transfer tax, here are the costs nearly every Ontario buyer should expect. A real estate lawyer is legally required to close a transaction in Ontario.

How much should you budget?

Here's how a typical closing-cost budget breaks down for an $800,000 Toronto home for a buyer who is not a first-time buyer. Land transfer tax dominates — which is why first-time buyer rebates matter so much.

Don't forget moving and adjustments

On closing, you'll also reimburse the seller for any prepaid property taxes or utilities (called adjustments), plus moving costs. Budget a small buffer on top of your core closing costs.

How HOMEH helps you keep more

Closing costs are mostly fixed by the government — but the commission side isn't. HOMEH gives eligible buyers the industry's highest Cashback Rebate, which can cover your closing costs many times over. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting. Estimate yours with the cashback calculator, then see what you can afford with the affordability calculator.