Thinking about buying a house in Ontario? One of the most common questions homebuyers ask is: How much money do I need beyond my down payment?
Whether you’re a first-time homebuyer or purchasing your next property, understanding buyer’s closing costs in Ontario is essential to avoiding unexpected expenses on closing day.
From land transfer tax and lawyer fees to home inspections, mortgage costs and moving expenses, there is more to budget for than the purchase price alone.
To make things easier, we’ll use a $1,000,000 resale home in King City or York Region as our example. These costs generally apply throughout Ontario, although purchasing within the City of Toronto involves additional land transfer tax.
What Are the Buyer’s Closing Costs in Ontario?
Here is a quick breakdown of the example expenses involved in purchasing a $1 million resale home outside Toronto, before rebates:
| Expense | Example Amount |
|---|---|
| Ontario land transfer tax | $16,475 |
| Legal fees | $2,000 |
| Title insurance | $500 |
| Home inspection | $500 |
| Appraisal | $400 |
| Moving expenses | $1,000 |
Keep in mind: Not every expense applies to every purchase. Some fees are included in your lawyer’s quote, and others may be covered by your lender. Moving and inspection expenses are part of your overall buying budget, although they are not necessarily paid on closing day.
1. Ontario and Toronto Land Transfer Tax
Land transfer tax is usually one of the largest closing costs when buying a house in Ontario.
For a $1 million home purchased in King City, Aurora, Richmond Hill, Vaughan or elsewhere in York Region, the provincial land transfer tax is $16,475, before any applicable rebates.
If you’re purchasing within the City of Toronto, you’ll also pay municipal land transfer tax. On a $1 million home, that adds another $16,475, bringing the combined land transfer tax to $32,950 before rebates and administrative fees.
First-time homebuyer? You may qualify for an Ontario land transfer tax refund of up to $4,000. Eligible first-time buyers purchasing in Toronto may also qualify for a municipal rebate. Ask your lawyer to confirm eligibility, your eligible share and when any refund can be applied.
2. Legal Fees and Disbursements
You’ll need a real estate lawyer to handle the legal aspects of purchasing your home.
Your lawyer will review the title, register the property in your name, complete mortgage documentation and arrange the transfer of funds.
My advice: Ask whether your legal quote includes HST, registration fees, title searches, title insurance and other disbursements. This will help you avoid surprises.
3. Home Inspection
A professional home inspection helps identify potential issues with the property, including the roof, plumbing, electrical systems, heating and foundation.
Even if a house appears to be in excellent condition, an inspection may reveal problems that aren’t immediately visible.
My advice: Don’t overlook a home inspection simply because the property looks beautifully renovated. Understanding its condition before committing can save you from expensive surprises later.
4. Property Appraisal
Some mortgage lenders require a property appraisal to confirm that the home is worth the amount being financed.
The cost depends on the property and lender. In some cases, your mortgage provider may cover this expense.
5. Title Insurance
Title insurance provides protection against certain property ownership risks, including some title defects, registration issues and title fraud.
It is generally arranged through your real estate lawyer and paid as a one-time expense.
6. Mortgage Default Insurance and Provincial Sales Tax
If your down payment is less than 20%, mortgage default insurance is generally required for an eligible mortgage.
The insurance premium is calculated based on your mortgage amount and down payment. It can usually be added to your mortgage.
One important expense buyers often overlook: Ontario charges 8% provincial sales tax on the mortgage insurance premium. Unlike the premium itself, this tax cannot be added to your mortgage.
For example, if your mortgage insurance premium is $20,000, the provincial sales tax would be $1,600, which you’ll need to budget for separately.
7. Property Tax and Other Closing Adjustments
Property taxes and certain other expenses are adjusted between the buyer and seller on closing.
For example, if the seller has prepaid property taxes covering a period after your closing date, you may need to reimburse them for that portion.
Your lawyer will calculate these adjustments and include them in your final statement of adjustments.
8. Moving and Home Insurance
Moving costs depend on the size of your home, the distance involved and whether professional packing services are needed. A local move may cost approximately $500 to $3,000 or more.
You’ll also need appropriate home insurance, typically effective on your closing date. Most mortgage lenders require proof of insurance before releasing the mortgage funds.
Is Your Deposit Part of Your Down Payment?
This is something that often causes confusion, especially for first-time homebuyers. Your deposit is normally part of your down payment, not an additional closing cost.
For example, if you’re buying a $1 million home with a 20% down payment, the total down payment is $200,000. A $50,000 deposit leaves $150,000 of the down payment still to provide.
Your deposit is credited toward your purchase, and you’ll need to provide the balance of your down payment along with the required closing funds.
Estimate How Much Cash You Need to Buy a Home
Start with the $1 million resale-home example in York Region with a 20% down payment, or enter your own figures. The prefilled budget is $220,875 before the deposit credit, or $170,875 remaining after the example $50,000 deposit. These are planning figures, not an amount due on a particular day.
Other Buying Costs Worth Considering
Depending on the type of property you’re purchasing, there may be additional expenses:
- Condominium status certificate and document review: Additional costs may apply when purchasing a condo.
- New construction HST and builder adjustments: Newly built homes may involve taxes and charges that differ from resale purchases.
- Rural property inspections: Homes with wells, septic systems or other specialized features may require additional inspections.
- Non-resident buyer taxes: Certain purchasers may be subject to additional taxes or restrictions, depending on eligibility.
- Immediate repairs or improvements: It’s always a good idea to keep some funds available for unexpected expenses after moving in.
Watch: Buyer’s Closing Costs in Ontario
Wondering how much money you’ll actually need to purchase a home beyond your down payment?
In my Buyer’s Closing Costs in Ontario video, I walk you through the expenses homebuyers should prepare for, from land transfer taxes and legal fees to inspections and other commonly overlooked costs.
Whether you’re buying your first home or making your next move, understanding these expenses early can make the entire process less stressful.
Get My Free Buyer’s Guide
Buying a home involves much more than finding the right property.
My free step-by-step Buyer’s Guide walks you through the homebuying process in Ontario, including preparing your finances, finding the right home, making an offer, arranging inspections, avoiding common mistakes and preparing for closing day.
Final Thoughts: Plan Your Purchase With Confidence
Buying a home is an exciting milestone, but understanding the full financial picture is just as important as finding the right property.
My advice: Before making an offer, review your down payment, mortgage approval, buyer’s closing costs and additional expenses with your mortgage professional and real estate agent.
A little planning can make a big difference and help you approach your purchase with confidence.
Thinking about buying a home in King City, York Region or the surrounding areas?
I’d be happy to guide you through the buying process, explain what to expect and help you make informed decisions every step of the way.
Marina Selby | Your Local King City REALTOR®
647-558-4818
Helping Ontario homebuyers purchase with confidence.
Frequently Asked Questions About Buyer’s Closing Costs
How much are closing costs on a $1 million house in Ontario?
For a $1 million resale home outside Toronto, provincial land transfer tax is $16,475 before rebates. Including legal fees, title insurance, inspections and other expenses, your total buying costs can exceed $20,000 in addition to your down payment.
Do first-time homebuyers pay closing costs in Ontario?
Yes. First-time homebuyers are responsible for applicable closing costs, although qualifying buyers may receive an Ontario land transfer tax refund of up to $4,000 and additional rebates if purchasing within Toronto.
Can buyer’s closing costs be included in a mortgage?
Most closing costs must be paid separately. Mortgage default insurance premiums can generally be added to the mortgage, but Ontario’s provincial sales tax on those premiums cannot.
Does the buyer pay realtor commission in Ontario?
In many resale transactions, the seller agrees to pay compensation toward the buyer’s brokerage. However, compensation arrangements are negotiable, and buyers may have obligations under their representation agreements. Review these terms with your agent before signing.
Are closing costs negotiable in Ontario?
Certain expenses, credits or closing-related terms may be negotiated as part of the purchase agreement.
In a buyer’s market, purchasers may have greater negotiating power and could request that the seller contribute toward certain expenses or agree to a price adjustment.
In a seller’s market, buyers may choose to offer more favourable terms to make their offer more competitive. Government taxes and statutory fees themselves are not negotiable.
When do buyers pay closing costs in Ontario?
Many closing costs are paid through your real estate lawyer on closing day. However, deposits, inspections, appraisals and some other expenses may need to be paid earlier.
This 2027 planning guide uses Canadian-dollar estimates and rules checked in October 2026. Reconfirm applicable 2027 rules and costs with your lawyer and lender. Actual costs depend on your property, location, financing and transaction.
Reference information: Ontario land transfer tax; Ontario first-time buyer refunds; Toronto tax rates and fees; Toronto rebate eligibility; Ontario insurance-premium tax; FCAC down-payment guidance; Insured-mortgage eligibility rules; RECO Information Guide. Service-cost examples are illustrative, not provider quotations.