What do I need to know before buying a home in Ontario?
Beyond your down payment, budget for land transfer tax, legal fees, title insurance, and adjustments for prepaid property taxes. Your lawyer checks title, reviews your mortgage instructions, and makes sure the money and the deed move together on closing day.
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What does a buyer pay for on closing, besides the price?
Ontario land transfer tax is charged in brackets (as of 2026): 0.5% up to $55,000, 1.0% up to $250,000, 1.5% up to $400,000, 2.0% above that, and 2.5% above $2,000,000 for one or two-unit homes. Toronto adds its own municipal land transfer tax on top; nowhere else in the GTA does. Add legal fees, title insurance, and adjustments for anything the seller prepaid, like property taxes.
What is a deposit, and is it refundable?
Your deposit is paid when you sign the offer, held in trust, and credited toward your purchase price at closing. It isn't a separate fee. If a financing or inspection condition isn't met and you cancel properly within that period, the deposit is normally returned. Once conditions are waived, walking away puts it at risk.
What does a title search check for?
Your lawyer confirms the seller has clear ownership and searches for anything registered against the property: old undischarged mortgages, liens, easements, or municipal work orders. That's separate from a home inspection, which checks the house's physical condition, not its legal status.
Do I need title insurance?
Most buyers get it. It's a one-time premium covering certain title defects, fraud, and survey issues a search might miss. Your lawyer can explain what it covers for your purchase.
What happens to my mortgage money on closing day?
Your lender sends instructions your lawyer must follow exactly. Your lawyer combines the mortgage funds with your down payment, pays the seller, and registers the deed and mortgage on title, usually within hours of each other.
Where to go from here
- Get a lawyer involved as soon as your offer is firm, not closing week.
- Ask your lawyer to review the agreement before your conditions expire, not after.
- Budget for land transfer tax and legal fees separately from your down payment.
People also ask
Is my deposit the same as my down payment?
No. The deposit is credited toward your purchase price. The down payment is your total equity versus your mortgage.
What if the home inspection finds a problem?
You can typically negotiate, ask for repairs, or walk away with your deposit returned, depending on your agreement's wording.
Do I need a lawyer if I'm paying cash, no mortgage?
Yes. Title still needs checking and the deed still needs registering, mortgage or not.
How is land transfer tax different from property tax?
Land transfer tax is a one-time charge on closing. Property tax is an ongoing annual charge from your municipality.
This page is general information about Ontario law as of September 2026. It isn't legal advice about your situation.