How much are closing costs and land transfer tax when buying a home in Ontario?
Land transfer tax is usually the biggest closing cost, charged in brackets on the purchase price, doubled if you're buying in Toronto. Add legal fees, disbursements like title insurance, and adjustments for anything the seller prepaid.
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How is Ontario land transfer tax calculated?
It's charged in brackets on the purchase price (as of 2026): 0.5% up to $55,000, 1.0% on the portion from $55,001 to $250,000, 1.5% from $250,001 to $400,000, 2.0% above $400,000, and 2.5% above $2,000,000 for one or two-unit homes. On a $700,000 home, that works out to roughly $10,475.
Do I pay extra if I'm buying in Toronto?
Yes. Toronto charges its own municipal land transfer tax on top of the provincial one, at matching rates on the first $3,000,000. Since April 1, 2026, for homes with one or two single-family residences, the portion above $3,000,000 is taxed at graduated rates from 4.4% up to 8.6% on the portion over $20,000,000. No other GTA municipality charges a separate municipal land transfer tax.
Can I get any of it back as a first-time buyer?
Yes. Ontario refunds up to $4,000 to qualifying first-time buyers (as of 2026), which covers the full provincial tax on homes up to about $368,000. Toronto adds a separate municipal refund of up to $4,475. Your lawyer applies for both as part of closing. See our first-time buyers page for eligibility details.
What other costs come up on closing, besides land transfer tax?
- Legal fees: what your lawyer charges for the transaction itself.
- Disbursements: third-party costs your lawyer pays on your behalf, like registration fees, title searches, and courier or administrative charges.
- Title insurance: a one-time premium, commonly a few hundred dollars depending on the purchase price, covering certain title defects, fraud, and survey issues.
- Adjustments: reimbursing the seller for anything they prepaid that covers a period after closing, most often property taxes.
We don't publish specific legal fee amounts here since they depend on the transaction. Ask for a quote once you have a signed agreement.
Roughly how much should I budget on top of my down payment?
Land transfer tax is the largest single item and depends heavily on price and location. Beyond that, legal fees, disbursements, title insurance, and adjustments typically add up to a few thousand dollars more, though the exact figure varies by transaction. Ask your lawyer for a written estimate once your purchase price and closing date are set, so there are no surprises the week of closing.
Where to go from here
- Ask your lawyer for a full closing cost estimate as soon as your offer is firm.
- If you're a first-time buyer, confirm your eligibility for both the provincial and, if applicable, Toronto refund.
- Budget adjustments separately. They're often overlooked until the final statement.
People also ask
Is land transfer tax the same as property tax?
No. Land transfer tax is a one-time charge paid on closing. Property tax is an ongoing annual charge from your municipality.
Do I pay land transfer tax if I already own the home through a refinance?
No. It applies to a change in ownership, not to registering or increasing a mortgage. See our refinancing page.
Is title insurance mandatory in Ontario?
Not by law, but most lenders and lawyers recommend it, and most buyers get it.
What are adjustments on my statement?
Amounts reconciling what the seller prepaid, most commonly property taxes, so neither side pays for a period they didn't own the home.
Sources
This page is general information about Ontario law as of September 2026. It isn't legal advice about your situation.