Closing costs catch more Ontario buyers off guard than almost anything else in the transaction. Budget 1.5%–4% of the purchase price on top of your down payment — here is exactly where it goes in 2026.
What counts as a closing cost in Ontario?
Closing costs are expenses paid on or before your possession date, separate from your down payment. They include land transfer tax, legal fees, title insurance, home inspection, and financial adjustments for prepaid property taxes or utilities the seller has already paid.
How much is Ontario Land Transfer Tax in 2026?
Ontario's LTT runs on a sliding scale: 0.5% on the first $55,000, 1% up to $250,000, 1.5% up to $400,000, 2% up to $2,000,000, and 2.5% above that. On an $800,000 home you owe roughly $12,475. Toronto buyers pay a near-identical second municipal LTT on top. Full rates are published by the Ontario Ministry of Finance.
- First-time buyers receive an Ontario LTT rebate of up to $4,000, eliminating tax on purchases up to approximately $368,000.
- Toronto first-time buyers qualify for an additional municipal rebate of up to $4,475.
Do you pay HST on a resale home in Canada?
No. HST does not apply to resale residential properties. It does apply to professional services tied to your deal — legal fees, home inspections, and real estate commissions all carry 13% HST in Ontario.
Is HST charged on new construction homes in Ontario?
Yes. New builds are subject to 13% HST, though most builders factor it into the list price for primary residences. A federal GST/HST New Housing Rebate applies to homes under $450,000, returning up to $24,000. Homes above $450,000 receive only a partial rebate. Investment properties do not qualify — the full HST falls on the buyer.
What does title insurance cost and is it worth it?
Title insurance is a one-time premium of roughly $150–$400. It protects against fraud, survey errors, title disputes, and encroachments — risks that a standard title search will not catch. Most Ontario real estate lawyers recommend it, and most lenders require a lender policy regardless of the buyer's preference.
What other closing costs do Ontario buyers overlook?
- Legal fees: $1,500–$2,500 including disbursements.
- Home inspection: $400–$600, typically paid before closing.
- Property tax adjustment: You reimburse the seller for any taxes prepaid past your possession date.
- CMHC mortgage insurance: If your down payment is under 20%, premiums up to 4% of the mortgage are added to your balance — insured by CMHC.
How do I estimate total closing costs for my purchase?
Use 1.5%–2% of the purchase price as a baseline for resale homes, or 3%–4% for new builds once development charges and HST are factored in. On an $800,000 resale, that is $12,000–$16,000 beyond your down payment. Ask your real estate lawyer for a full closing cost statement before you firm up your offer.
Every transaction has unique adjustments. the Orchestate platform can connect you with a qualified real estate lawyer and walk you through a cost estimate specific to your purchase — before you sign, not after.
