Ontario Closing Costs: What You'll Actually Pay in 2026

The purchase price is just the starting point. Most buyers — especially first-time buyers — are caught off guard by the additional costs due at closing. These are not negotiable delays or optional extras. They are real obligations that must be funded on closing day, on top of your down payment.

On a $750,000 home purchase, you should expect to budget an additional $15,000-$30,000 in closing costs beyond your down payment. On a $1,000,000 purchase in Toronto, that number can exceed $45,000. This article breaks down every cost, with real numbers, so there are no surprises.

Land Transfer Tax (The Biggest One)

Ontario's Land Transfer Tax is calculated on a marginal rate basis — like income tax brackets. The rate applies only to the portion of the purchase price that falls within each bracket.

City of Toronto buyers pay an additional Municipal Land Transfer Tax at the same rate structure. On a $750,000 purchase, that is another $11,475 — bringing the total land transfer tax to $22,950.

Legal Fees

You need a real estate lawyer to close your transaction. There is no exception to this in Ontario. Your lawyer handles the title search, reviews your purchase agreement, manages the transfer of funds, and registers the title in your name.

• Lawyer's professional fee: typically $1,200-$2,000 flat. Shop around — fees vary and the cheapest is not always the best, but there are excellent lawyers at every price point.
• Disbursements: title search fees, land registry charges, bank wire fees, and related costs. Typically add $300-$600 to the lawyer's base fee.
• Total budget for legal: $1,500-$2,500

Home Inspection

A standard home inspection costs $400-$600 and covers the visible and accessible components of the home — structure, roof, foundation, electrical, plumbing, HVAC, and windows. For older or larger homes, budget toward the higher end.

In 2021, buyers were routinely waiving home inspections to compete. In 2026's buyer's market, there is no reason to skip it. An inspection that reveals a $15,000 furnace issue before you close is money well spent.

• WETT inspection (wood stove or fireplace): add $150-$300 if applicable
• Sewer scope (older homes): add $200-$400 — highly recommended for homes built before 1980
• Well water test (rural properties): add $150-$250

Title Insurance

Title insurance is a one-time premium — typically $200-$400 — that protects you against title defects, survey errors, unpaid liens from previous owners, and title fraud. Your lawyer will organize this and include it in their closing statement. It is not optional and it is worth every dollar.

Adjustments at Closing

On closing day, you reimburse the seller for any costs they have pre-paid that extend beyond the closing date. The most common adjustments include:

• Property tax pre-paid to end of year or quarter
• Pre-paid condo maintenance fees (condos)
• Pre-paid utilities (in some cases)

Adjustments are calculated by your lawyer based on the exact closing date. Budget $500-$2,000 depending on how much was pre-paid and the time of year you close.

Moving Costs and Immediate Repairs

These are not technically closing costs, but they land in the same window and need to be in your budget. Professional movers for a local move run $1,500-$4,000 depending on the size of the move and distance. Storage if needed adds $150-$300 per month.

Budget $3,000-$5,000 for immediate repairs, changes, or improvements you will want to make in the first month — fresh paint, new locks, appliances, or addressing anything the home inspection flagged. Almost every buyer spends something here, even on move-in-ready homes.

Mortgage Setup Costs

• CMHC insurance premium (if less than 20% down): 2.8%-4.0% of the insured mortgage amount. This is added to your mortgage balance — you do not pay it at closing, but it increases your loan.
• Appraisal fee (if required by your lender): $350-$500. Not always required — many lenders use automated valuation tools for properties with strong comparable sales.
• Mortgage broker fee: $0 if you are working with a broker. Brokers are paid by the lender. If you go directly through a bank, ask whether there is a rate-hold or application fee.

Total Closing Cost Summary

Figures based on a $700,000-$800,000 purchase price. First-time buyer rebates applied to LTT ranges where shown. CMHC premiums excluded (added to mortgage, not paid at closing).