The number nobody tells you until your lawyer sends the trust ledger
Most Ontario buyers budget for the down payment. Almost none budget for the second cheque — the one your real estate lawyer asks for 48 hours before closing.
In 2026, total closing costs in Ontario land between 3% and 5% of the purchase price. On a $1.2M Toronto semi, that’s $36,000 to $60,000 your lender will not finance. So where does the money actually go?
The five buckets that drain your trust account
Every Ontario buyer pays into these five buckets. The split changes with the city and the lender, but the categories don’t.
1. Land Transfer Tax (the largest single line)
Ontario uses a sliding scale: 0.5% on the first $55K, 1% to $250K, 1.5% to $400K, 2% to $2M, 2.5% above $2M. On a $1.2M home, the provincial LTT alone is roughly $20,475.
Buy inside the City of Toronto and you pay a municipal LTT on top — same brackets up to $2M, then escalating to 7.5% on the portion above $20M. On that same $1.2M Toronto home, MLTT adds another $20,475. Total: about $40,950 in land transfer tax alone.
2. Legal fees and disbursements
Expect $1,800 to $2,800 for a standard freehold closing, $2,200 to $3,200 for a condo. That covers title search, title insurance ($350-$500), software fees, registration fees, and the lawyer’s time. Status certificate review on a condo adds another $200-$400.
3. Lender and mortgage costs
Appraisal: $400-$650. CMHC or Sagen insurance if your down payment is under 20% — typically 2.8% to 4% of the mortgage, financed in but the PST on the premium (8% in Ontario) is paid at closing.
4. Adjustments to the seller
Property tax, utilities, and condo fees the seller pre-paid past closing. On a $7,200/year tax bill closing mid-month, you’ll reimburse roughly $300-$600.
5. Moving and home inspection
Home inspection: $450-$700. Movers in Ontario: $1,500-$3,500. Utility hookups: $200-$400.
Real example: $1.4M detached in Vaughan vs $1.4M detached in Toronto
Same price, very different bill. Both pay roughly $25,475 in provincial LTT. The Vaughan buyer pays zero municipal LTT. The Toronto buyer pays an additional $25,475 — a $25,475 swing for crossing Steeles Avenue.
Add legal ($2,400), inspection ($550), title insurance ($450), adjustments ($800), moving ($2,500) and the Vaughan total comes in around $32,175. Toronto: $57,650.
First-time buyer rebates that actually move the number
Ontario refunds up to $4,000 in provincial LTT for first-time buyers. Toronto refunds up to $4,475 in municipal LTT. Combined: $8,475 back on closing day if you qualify.
Qualifying means: 18+, never owned a home anywhere in the world, spouse hasn’t owned during your marriage, and you’ll occupy as principal residence within 9 months. The rebate is applied at registration — your lawyer handles it.
The Bottom Line for Ontario Buyers
Budget 4% of purchase price for closing costs as a safe baseline outside Toronto. Inside Toronto, budget 5.5%. The number that wrecks deals isn’t the down payment — it’s the buyer who shows up at the lawyer’s office $30K short because nobody walked them through the math.
Before you even draft the offer, run the closing-cost calc against your cash position. And if you’re still in research mode, see how Instant Calculator works — we’ll show you the all-in number before you fall in love with the wrong listing.
This is the same homework I do for every buyer client at RE/MAX Your Community Realty, Brokerage — built from real MLS sold comparables from Repliers, not online estimates.
Curious what a home in your target neighbourhood actually costs all-in? Start with a free home-value range and a closing-cost estimate backed by real Ontario sold data → instantcalculator.ca/home-value/
— Alex Goodman, Sales Representative, RE/MAX Your Community Realty, Brokerage
 | Alex GoodmanSales Representative · RE/MAX Your Community Realty, Brokerage Alex Goodman is a Sales Representative with RE/MAX Your Community Realty, Brokerage, serving the Greater Toronto Area. He specializes in residential sales across Ontario — luxury, first-time buyer, and downsizing transactions — and maintains InstantCalculator.ca as a free public resource for Ontario homeowners researching their property value. |