October 25, 2026 | Buying
How Much Are Closing Costs in Ontario? (What You Need on Closing Day)
Updated October 2026 · By Xerxes Bharucha, Broker · Team Rajpal, Re/Max Key2 Real Estate., Brokerage, Seaton, Pickering
Quick answer: Closing costs in Ontario add about 1.5% to 4% of the price on top of your down payment. The biggest one is usually land transfer tax, and first-time buyers get up to $4,000 of it back. The rest is your lawyer, title insurance, a home inspection and a few smaller items. On a $549,000 Pickering townhouse, a first-time buyer’s closing costs come to roughly $7,000 to $10,000, and that’s money you need in cash. It can’t be added to your mortgage.
What are closing costs?
Closing costs are the fees and taxes you pay to finish buying a home, on top of your down payment. Most are paid through your lawyer on closing day, the day the home becomes yours. Your lender won’t lend you this money, so it has to be saved.
What closing costs do buyers pay in Ontario?
| Cost | Typical amount | Who it’s paid to |
|---|---|---|
| Land transfer tax | Depends on the price (see below) | Province of Ontario |
| Lawyer fees and costs | $1,500 – $3,000 (often a sliding scale based on the price) | Your real estate lawyer |
| Title insurance | $250 – $500 | Through your lawyer |
| Home inspection | $400 – $650 | Home inspector |
| Appraisal (only if your lender asks) | $300 – $600 | Appraiser |
| Tax on mortgage insurance (if you put down less than 20%) | 8% of the insurance, in cash | Province of Ontario |
| Adjustments | Usually a few hundred dollars | The seller |
What are adjustments? If the seller already paid this year’s property tax or other bills for days you’ll own the home, you pay them back for those days. Your lawyer works this out.
How much is land transfer tax in Ontario?
Land transfer tax in Ontario is charged on the price of the home, in steps. Here’s what it works out to at common Pickering prices:
| Price | Land transfer tax | First-time buyer pays |
|---|---|---|
| $500,000 | $6,475 | $2,475 |
| $600,000 | $8,475 | $4,475 |
| $700,000 | $10,475 | $6,475 |
| $800,000 | $12,475 | $8,475 |
| $900,000 | $14,475 | $10,475 |
| $1,000,000 | $16,475 | $12,475 |
A quick shortcut: for homes between $400,000 and $2,000,000, Ontario land transfer tax works out to 2% of the price, minus $3,525. On a $750,000 home, that’s $15,000 − $3,525 = $11,475.
First-time buyers get up to $4,000 back. To qualify, you must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and move in within 9 months.
Good news for Pickering, Ajax and Whitby: only Toronto charges a second, city land transfer tax. Buy in Durham and you pay the Ontario tax only.
Work out your own number: try our land transfer tax calculator. This link opens it set up for the example below: $549,000, outside Toronto, first-time buyer, which comes to $3,455. Change the price to the home you’re looking at, and untick “first-time home buyer” if it doesn’t apply to you.
A real example: how much cash you need for a Pickering townhouse
Using our Rosefield Road condo townhouse at $549,000, for a first-time buyer putting down the smallest amount allowed:
| Amount | |
|---|---|
| Down payment (5% of the first $500,000 + 10% of the rest) | $29,900 |
| Land transfer tax ($7,455, minus the $4,000 first-time buyer refund) | $3,455 |
| Lawyer fees and costs, including title insurance | about $1,500 – $3,000 |
| Home inspection | about $400 – $550 |
| Tax on mortgage insurance (8%) | about $1,744 |
| Adjustments | about $0 – $1,000 |
| Total cash you need | about $37,000 – $40,000 |
Is mortgage insurance a closing cost?
Partly. If you put down less than 20%, your mortgage needs insurance (often called CMHC insurance). The insurance itself is added to your mortgage, so you don’t pay it upfront. But Ontario charges 8% sales tax on it, and that tax can’t be added to your mortgage. You pay it in cash on closing day.
What are the closing costs on a new construction home in Ontario?
Buying new from a builder comes with extra closing costs that resale buyers don’t pay. Most of them show up on the builder’s statement of adjustments, the bill your lawyer gets just before closing. That’s why many new-build buyers are surprised: the price on the agreement isn’t the whole cost.
| New-build cost | What it is | Typical amount |
|---|---|---|
| Tarion warranty enrolment | The fee to register your home for its new-home warranty | $1,096 – $2,616 for homes priced $500K – $1.5M (including HST) |
| Development charges and levies | City and region fees the builder passes on to you | Varies a lot by builder. Look for a cap in your agreement. |
| Utility hookups and meters | Water meter, hydro and gas connections | Varies by builder |
| Land transfer tax | Charged on the full price, including the HST that’s built into it | Higher than on a resale home at the same sticker price |
| Lawyer fees | New-build closings take more work | Often higher than a resale closing |
| Occupancy fees (condos only) | Monthly fee if you move in before the building is registered | Covers estimated tax, condo fee and interest, for months or longer |
A real example: new-home closing costs in Seaton
Here’s what Mattamy Homes lists as closing costs on its Seaton Whitevale closing cost sheet (October 2025), for a $750,000 townhouse and a $1,000,000 detached home:
| Closing cost | $750,000 townhouse | $1,000,000 detached |
|---|---|---|
| Tarion warranty enrolment | $1,670 | $2,075 |
| Water meter | $250 | $250 |
| Hydro meter | $400 | $400 |
| Neighbourhood trees | $700 | $700 |
| HCRA fee (the provincial home builder regulator) | $170 | $170 |
| Builder closing costs, plus HST | $3,190 + HST = about $3,605 | $3,595 + HST = about $4,062 |
| Driveway paving, fencing (if applicable), lot survey | Included | Included |
| Property tax and levies | Set out in the agreement’s Schedule “1” | Set out in the agreement’s Schedule “1” |
| Lawyer fees | From your own lawyer | From your own lawyer |
| Land transfer tax | $11,475 ($7,475 for a first-time buyer) | $16,475 ($12,475 for a first-time buyer) |
So before levies, property tax adjustments and your lawyer, that’s roughly $3,600 to $4,100 in builder closing costs, on top of land transfer tax. Every builder’s list is different. Some charge for driveway paving or fencing; Mattamy includes them here. Always ask for the closing cost sheet before you sign.
What about levies? Levies are the one cost that can range a lot from builder to builder, and even from one project to the next. They’re also something builders use in promotions. As of October 2026, Mattamy’s Seaton Whitevale promotion includes no increase in levies. Promotions change, so ask the builder exactly what’s capped or frozen, and have your lawyer confirm it’s written into your agreement.
How to protect yourself:
- Look for caps. Before you sign, your lawyer should check that development charges, levies and utility fees are capped at a set dollar amount. Without a cap, there’s no limit to what can be added at closing.
- Check how HST is handled. In most Ontario new-build agreements, HST is included in the price and the builder keeps the HST rebate. See our guide to the new home HST rebate in Ontario.
- Budget extra cash. Set aside more for closing on a new build than you would for a resale home at the same price.
- Know your warranty. Your Tarion fee buys real protection. Our Tarion warranty guide explains the deadlines that matter.
What catches buyers off guard on closing day?
The thing that catches our clients off guard most is how much money they need to come up with on closing day. The deals where the total closing costs stay up in the air right to the end are pre-construction purchases, especially when nobody had a lawyer look at the contract at the time of purchase, and the development levies weren’t capped.
Xerxes Bharucha, Broker, Team Rajpal
Coming up with thousands of dollars extra at closing can catch anyone off guard, no matter how well off they are. That’s why our advice is always the same: have a lawyer review your builder contract when you buy, not when you close. A lawyer usually can’t tell you the exact amount years ahead, but they can tell you how much to prepare for. Even better, they can go back to the builder and ask for the levies to be capped.
How do you lower your closing costs?
- Claim the first-time buyer refund. Your lawyer usually claims it for you on closing day.
- Use an FHSA for your down payment, so more of your savings can go to closing costs. Our first-time home buyer guide explains how.
- Get a lawyer’s quote upfront that lists the fee and every cost.
- Ask the seller for a closing date that lines up with your lease, so you don’t pay rent and a mortgage at the same time.
- Ask your lawyer for your final numbers early. A few days before closing, your lawyer can tell you the exact amount to bring, so nothing catches you off guard.
Closing costs in Ontario: FAQ
How much are closing costs in Ontario?
Usually about 1.5% to 4% of the price, on top of your down payment. Land transfer tax is normally the biggest part.
How much is land transfer tax on a $600,000 home in Ontario?
$8,475. A first-time buyer gets up to $4,000 back, so they pay $4,475.
Is there a land transfer tax in Pickering?
Only the Ontario one. Toronto is the only city in Ontario with a second, city land transfer tax.
Who qualifies for the first-time buyer land transfer tax refund?
Buyers who are at least 18, a Canadian citizen or permanent resident, have never owned a home anywhere in the world, and move in within 9 months.
What is title insurance?
A one-time insurance policy, usually $250 to $500, that protects you if there’s a problem with the legal ownership of your home that nobody caught before closing. That includes title fraud, an old debt or lien registered on the home, survey or boundary problems, and work done without a permit. It lasts as long as you own the home. Read more in our post on title insurance in Ontario.
Is title insurance mandatory in Ontario?
Not by law. But most lenders require it, or a lawyer’s written opinion on the title, before they’ll give you a mortgage, so almost every buyer with a mortgage gets it. Even buyers paying cash usually choose it, because it’s a small one-time cost for long-term protection.
Can closing costs be added to my mortgage?
No. Closing costs, including the 8% tax on mortgage insurance, are paid in cash on closing day.
What closing cost surprises buyers the most?
The total amount of cash needed on closing day, especially on pre-construction homes where development levies weren’t capped. Have a lawyer review the builder contract when you buy so you know how much to save, and ask for the levies to be capped.
Do I pay closing costs on a new build?
Yes, and often more: development charges, Tarion enrolment and utility hookup fees can be added. Have a lawyer review the agreement first.
Buying in Pickering, Ajax or Whitby?
We’ll help you work out exactly how much cash you need before you make an offer, and connect you with a trusted lawyer. We have connections at all the lenders; reach out and we’ll put you in touch. If you’re looking for a realtor in Pickering, start here.
Call or text Team Rajpal · 647.372.2997
Sources: land transfer tax rates and first-time buyer refund from Ratehub (2026); lawyer, title insurance, inspection and appraisal ranges and the 8% tax on mortgage insurance from Frank Mortgage; Tarion warranty enrolment fees (effective September 1, 2025); new-build example from Mattamy Homes’ Seaton Whitevale closing cost sheet; resale example from Team Rajpal listing 1975 Rosefield Rd #111, Pickering.
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