Sandeep Pawar
Broker
Closing costs in Ontario, worked out for your home
Land transfer tax, first-time buyer refunds, mortgage insurance and the rest, calculated for your price and city. Toronto’s April 2026 rates included.
The short answer: your biggest closing cost is land transfer tax. Ontario charges it on every purchase, Toronto adds its own on homes inside the city, and first-time buyers can get up to $4,000 back from Ontario and up to $4,475 from Toronto. With less than 20% down, add the 8% Ontario sales tax on your mortgage insurance premium, which you pay in cash at closing.
Calculate your closing costs
Land transfer tax rates
Both taxes are charged in bands: each rate applies only to the part of the price inside its band. These are the rates for a home with one or two single-family residences.
| Part of the price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
| Part of the price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| $2,000,000 to $3,000,000 | 2.5% |
| $3,000,000 to $4,000,000 | 4.40% |
| $4,000,000 to $5,000,000 | 5.45% |
| $5,000,000 to $10,000,000 | 6.50% |
| $10,000,000 to $20,000,000 | 7.55% |
| Over $20,000,000 | 8.60% |
First-time buyer refunds
- Ontario: up to $4,000 off the provincial tax for eligible first-time buyers. You must be 18 or older, a Canadian citizen or permanent resident, never have owned a home anywhere (nor your spouse during your marriage), and move in within nine months.
- Toronto: up to $4,475 off the municipal tax for eligible first-time buyers buying in the city.
- Your lawyer usually claims both at registration. Otherwise you have 18 months to apply to Ontario.
Mortgage loan insurance
With less than 20% down, your mortgage must be insured. The premium is a percentage of your mortgage, set by how much you borrow against the price, and is usually added to the mortgage. In Ontario, 8% provincial sales tax is charged on the premium and must be paid in cash at closing.
| Mortgage as a share of the price | Premium |
|---|---|
| Up to 65% | 0.60% |
| 65.01% to 75% | 1.70% |
| 75.01% to 80% | 2.40% |
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
Insured mortgages are available for homes under $1.5 million. Lenders may add surcharges, for example for a 30-year amortization.
Other costs to budget for
- Legal fees and disbursements: ask your lawyer for an all-in quote before you offer.
- Title insurance, usually arranged by your lawyer.
- Home inspection, and any specialist inspections it recommends.
- Appraisal, if your lender charges for one.
- Adjustments: you repay the seller for property tax or utilities they prepaid past closing.
- Home insurance, effective on closing day.
- Moving, utility hook-ups and any immediate repairs.
- For a new build: HST rules, development charges and Tarion enrolment can apply. Read the agreement with your lawyer before signing.
Want me to run these numbers on a real listing?
Book a 30-minute callQuestions buyers ask
How much is land transfer tax on a $1,000,000 home in Ontario?
Ontario’s land transfer tax on a $1,000,000 home with one or two single-family residences is $16,475. In Toronto you also pay the municipal land transfer tax, another $16,475, for $32,950 in total before any first-time buyer refund.
Do I pay Toronto land transfer tax if I buy in Brampton or Mississauga?
No. The municipal land transfer tax applies only to properties inside the City of Toronto. Brampton, Mississauga, Caledon, Oakville and the rest of the GTA pay the Ontario tax only.
Who qualifies for the first-time buyer refund?
In Ontario you must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world (nor your spouse while married to you), and live in the home within nine months. Apply at registration or within 18 months. The refund is reduced if a non-qualifying person, such as a parent, is also on title.
Can I add closing costs to my mortgage?
Generally no. Land transfer tax, legal fees and the provincial sales tax on mortgage insurance are paid from your own funds on or before closing. The mortgage insurance premium itself can be added to the mortgage; the 8% sales tax on it cannot.
What other closing costs should I expect?
Legal fees and disbursements, title insurance, a home inspection, sometimes an appraisal, property tax and utility adjustments that repay the seller for anything prepaid, home insurance, and moving. Ask your lawyer for an all-in quote before you make an offer.
Sources
- Ontario.ca: calculating land transfer tax (updated 22 April 2026)
- Ontario.ca: refunds for first-time homebuyers
- City of Toronto: MLTT rates (new rates from 1 April 2026)
- CMHC: mortgage loan insurance premiums
- Financial Consumer Agency of Canada: down payments
Know your numbers before you offer
Send me a listing you like and I will run the full cost, the fair price range and what I would offer.