Short answer: On top of the down payment, first-time buyers in Ontario should budget for land transfer tax (two taxes in Toronto), legal fees and disbursements, title insurance, adjustments for prepaid property tax or condo fees, provincial sales tax on any mortgage default insurance premium, and inspection and moving costs. Most of these are due on closing day.
The costs most buyers pay
| Cost | What it is | When paid |
|---|---|---|
| Land transfer tax | Ontario tax, plus the municipal tax in Toronto; first-time buyer rebates reduce both | Closing |
| Legal fees and disbursements | Your lawyer's fee, searches, registration fees and other out of pocket costs | Closing |
| Title insurance | A one time premium protecting against title problems and some fraud risks | Closing |
| Adjustments | Your share of property taxes, utilities or condo fees the seller already prepaid | Closing |
| Tax on mortgage default insurance | Ontario charges provincial sales tax on the insurance premium; it cannot be added to the mortgage | Closing |
| Home inspection and appraisal | Inspection before firm deal; lender may require an appraisal | Before closing |
| Home and fire insurance | Required by the lender from the day you take possession | Before closing |
| Moving and set-up | Movers, utility connections, immediate repairs | Around closing |
Land transfer tax is the big one
In Toronto you pay both Ontario's land transfer tax and the City of Toronto's. On an $800,000 home that is $24,950 combined before rebates. Eligible first-time buyers can receive up to $8,475 back in total. Our guide to Toronto land transfer tax in 2026 has the rates and worked examples.
Costs that apply to some purchases
- Condos: a status certificate review before you go firm, and prepaid common expenses adjusted on closing.
- New builds: HST is usually included in the price with the rebate assigned to the builder, but agreements often add development charges, utility connection fees and other adjustments. Read the schedule of adjustments carefully.
- Rural properties: well water testing and septic inspections.
- Properties with tenants: leases, deposits and rent adjustments.
Your lawyer's role on closing
- Reviews the agreement of purchase and sale and the mortgage instructions.
- Searches title, executions and taxes, and arranges title insurance.
- Prepares the statement of adjustments and tells you the exact balance due.
- Receives the mortgage funds and your balance, pays the seller and registers the transfer.
- Claims first-time buyer rebates and releases the keys.
Avoiding surprises
- Ask your lawyer for an estimate of all closing costs as soon as your deal is firm.
- Keep the funds for closing costs available in your account well before closing day; lenders and lawyers need time to move money.
- Read your agreement for clauses that add costs, especially on new builds.
- Do not make large purchases on credit before closing; lenders can recheck your finances.
Frequently asked questions
How much are closing costs in Ontario?
It depends mainly on the price and location. In Toronto, land transfer tax is the largest item; legal fees, title insurance, adjustments and the tax on mortgage insurance are added on top.
Can closing costs be added to the mortgage in Ontario?
Generally no. Land transfer tax, legal fees and the provincial sales tax on mortgage insurance must be paid in cash on closing.
Do first-time buyers pay land transfer tax?
Yes, but they can receive up to $4,000 back from Ontario and up to $4,475 from Toronto.
What is a statement of adjustments?
A document your lawyer prepares that shows the purchase price, credits for the deposit and adjustments for prepaid taxes or fees, and the balance due on closing.
Do I need title insurance in Ontario?
It is not legally required, but most lenders require it or an equivalent, and it protects against title defects and some types of fraud.
Talk to our team
This guide is general information, not legal advice. For advice on your situation, see our real estate lawyer in Toronto page. To book a paid consultation (30 minutes, $150 plus HST, paid when you book), book online or call (647) 271-1646. The phone is answered 24 hours a day, 7 days a week, and office meetings are by appointment. Civitas Law is a team of legal professionals under the leadership of lawyer Nasibeh Mehrpouyan, serving clients in English, French, Farsi, Russian and Serbian.