Estimate Your Closing Costs
What Are Closing Costs?
Closing costs are the fees and expenses you pay on top of the purchase price when buying a home in Ontario. They are due on the closing date and must be paid with available funds (they cannot be added to your mortgage). Typical closing costs range from 1.5% to 4% of the purchase price.
Breakdown of Ontario Closing Costs
| Cost | Typical Range | Description |
|---|---|---|
| Land Transfer Tax | Varies by price | Ontario provincial tax; Toronto also has a municipal LTT |
| Legal Fees | $1,500 – $2,500 | Real estate lawyer fees for closing |
| Title Insurance | $250 – $500 | One-time premium protecting against title issues |
| Home Inspection | $400 – $600 | Professional inspection before purchase |
| Appraisal | $300 – $500 | May be required by your lender |
| CMHC Insurance PST | 8% of premium | Ontario PST on mortgage insurance (if down < 20%) |
| Property Tax Adjustment | Varies | Prorated share of property taxes from closing to year-end |
| Moving Costs | $500 – $3,000 | Professional movers or truck rental |
| Utility Hookup | $100 – $300 | Setting up hydro, gas, water, internet |
| Home Insurance | $100 – $250/mo | Required by lender; first payment or prepaid at closing |
Tips to Reduce Your Closing Costs
- Claim the first-time buyer LTT rebate (up to $4,000 provincial + $4,475 Toronto)
- Put 20%+ down to avoid CMHC insurance and PST on the premium
- Compare lawyer fees — get quotes from at least 2–3 real estate lawyers
- Ask if your lender covers the appraisal fee
- Negotiate closing date to minimize property tax adjustments