Closing Costs in Ontario: The Real Number You Should Budget For

Almost every Ontario buyer underestimates closing costs. The mortgage and the down payment get all the attention, but the cheque you write on closing day is bigger than most first-time buyers realize — usually 1.5% to 4% of the purchase price on top of your down payment.

This is the honest, itemized version. Real numbers, real Durham Region examples, nothing hidden.

Quick estimate: budget 1.5%–4% of purchase price

• Resale home in Durham (~$800k): budget $18,000–$25,000 in closing costs
• New build in Durham (~$800k): budget $30,000–$45,000 (new builds carry extra charges)
• First-time buyer: subtract up to $4,000 back thanks to the LTT rebate

The single biggest variable is Land Transfer Tax. Run your exact LTT here before anything else.

1. Land Transfer Tax (LTT) — the biggest line item

Ontario charges a graduated Land Transfer Tax on every home purchase. On an $800,000 home you'll pay roughly $12,475. First-time buyers get up to $4,000 back — applied automatically at closing by your lawyer.

Buying in Toronto? You pay a second municipal LTT of roughly the same amount. Durham Region has no municipal LTT — one of the quietest reasons buyers keep shifting east.

2. Legal fees + disbursements — $1,800 to $2,500

Your real estate lawyer handles the title transfer, mortgage registration, and closing funds. Typical Durham lawyer:

• Legal fees: $1,200–$1,800
• Disbursements (title search, registration, couriers, software): $400–$700
• HST on the above

Get a written all-in quote. "$999 legal fees" ads almost always exclude disbursements.

3. Title insurance — $250 to $500

A one-time premium your lawyer arranges. Protects you from title fraud, survey issues, and unknown liens for as long as you own the home. Not optional in practice — every lender requires it.

4. Property tax + utility adjustments — variable

If the seller pre-paid property taxes past your closing date, you reimburse the difference. Same for oil, propane, or condo fees. This is almost always a few hundred to a few thousand dollars — it's a rounding line, not a surprise.

5. Home inspection — $450 to $700

Paid before closing (usually during conditions). Optional but strongly recommended on any resale home. New builds don't need one until the 30-day and 1-year Tarion visits.

6. Mortgage-related costs

• Appraisal: $300–$500 (waived by many lenders on insured mortgages)
• CMHC / Sagen / Canada Guaranty premium: 2.8%–4.0% of the mortgage amount if your down payment is under 20%. Added to the mortgage, not paid at closing — but you do pay 8% Ontario PST on the premium at closing.

On a $700,000 mortgage with 10% down, that PST alone is roughly $1,700.

7. New-build only: HST, Tarion, and development levies

New construction adds costs resale doesn't:

• HST is included in most builder price lists — but confirm in writing. The federal + Ontario new housing rebates are usually assigned to the builder.
• Tarion enrollment: $600–$1,900 depending on price
• Development charges, education levies, meter installations: often $10,000–$25,000, buried in the schedule to the APS
• Occupancy fees on new condos: interest-only "phantom rent" until final closing

Never sign a new-build APS without a real estate lawyer redlining the closing-cost caps. This is where six-figure surprises happen.

8. Moving, insurance, and setup

• Home insurance (first year, prepaid): $1,000–$1,800
• Movers: $800–$2,500
• Utility hookups, locks, blinds, first shop: budget a few thousand

Real example: $800,000 resale in Whitby, first-time buyer, 15% down

• Land Transfer Tax: $12,475 – $4,000 rebate = $8,475
• Legal fees + disbursements + HST: ~$2,200
• Title insurance: ~$400
• Tax/utility adjustments: ~$600
• Inspection (paid earlier): $600
• CMHC PST on premium: ~$1,700
• Total due at closing: ~$13,375 (plus your $120,000 down payment)

How to avoid closing-day sticker shock

1. Run the LTT calculator before you write an offer.
2. Get a written all-in quote from your lawyer — legal + disbursements + HST.
3. Ask your mortgage broker for the exact CMHC PST hit if you're under 20% down.
4. On new builds, have the lawyer cap closing adjustments in the offer.

Want a personalized closing-cost estimate for a home you're considering? Send me the address and I'll run the numbers with you — no obligation.