Mortgage Closing Costs Calculator

How Much Are Closing Costs in Ontario? (2025 Guide)

Buying a home in Ontario involves more than just the down payment. On closing day, you’ll also pay a series of expenses known as closing costs. So, how much are closing costs in Ontario?

As a general rule, you should budget between 1.5% and 4% of your home’s purchase price for closing costs. For a $700,000 home, this could mean an extra $10,500 to $28,000.

These costs cover legal fees, taxes, insurance, and other required expenses. Being prepared for them is key to a smooth and stress-free homebuying journey.

At Turkin Mortgage, we ensure there are no surprises. This guide breaks down every cost you can expect. We guide our clients through the entire process with expert support, better rates, and truly personalized service, tapping into 35+ lenders to find the best solutions for you.

A Detailed Breakdown of Closing Costs in Ontario (2025)

Here is a detailed list of the fees and taxes that make up your closing costs in Ontario.

1. Land Transfer Tax (LTT) – Provincial and Toronto

This is almost always the largest closing cost.

• Ontario Land Transfer Tax (Provincial): This tax is paid on every property purchase in the province. It’s calculated on a sliding scale based on the home’s purchase price.

  • Example: On a $600,000 home, the provincial LTT would be $8,475.

• Municipal Land Transfer Tax (MLTT): If you are buying a property within the City of Toronto, you must pay an additional Municipal Land Transfer Tax. This tax uses a similar structure to the provincial one, effectively doubling your LTT bill.

  • Example: On that same $600,000 home in Toronto, you would pay $8,475 (Provincial) + $8,475 (Municipal) = $16,950 total.

2. First-Time Home Buyer Rebates (Provincial & Toronto)

To help make buying a home more affordable, the government offers significant rebates on the Land Transfer Tax for first-time buyers:

• Ontario Provincial Rebate: Provides a maximum rebate of $4,000. This completely covers the provincial LTT on homes up to $368,000.

• Toronto Municipal Rebate: Provides an additional maximum rebate of $4,475. This completely covers the municipal LTT on homes up to $400,000.

If you’re a first-time buyer in Toronto, you could be eligible for a combined total rebate of up to $8,475. Turkin Mortgage ensures every qualifying client applies for and receives these rebates, instantly reducing the cash you need at closing.

3. Legal Fees and Disbursements

You must use a real estate lawyer in Ontario to close your home purchase. Your lawyer handles the title search, registers the new deed and mortgage, facilitates the transfer of funds, and ensures the sale is legally binding.

• Cost: Expect to pay $1,000 to $2,000 (plus HST) for a standard purchase. This fee includes the lawyer’s time and “disbursements” (costs they pay on your behalf, like registration fees).

4. Title Insurance

Title insurance is a one-time policy that protects you and your lender from issues related to the property’s title, such as fraud, forgery, undisclosed liens, or boundary disputes. Most lenders require it.

• Cost: Typically $250 to $400 for an average home. This is a small price for significant, long-term protection.

5. Property Appraisal Fee

Your lender may require an appraisal to confirm the property’s market value before approving your mortgage.

• Cost: Usually $300 to $500 (plus HST). As your mortgage broker, Turkin Mortgage often works with lenders who offer free appraisals as a promotion, potentially saving you this cost.

6. PST on Mortgage Default Insurance (CMHC)

If your down payment is less than 20%, you must have mortgage default insurance (from CMHC, Sagen, or Canada Guaranty). While the insurance premium itself is usually added to your mortgage, the Provincial Sales Tax (PST) on that premium must be paid upfront in cash at closing.

• Cost: The PST is 8% of the total insurance premium. For example, on a $10,000 premium, you would owe $800 at closing. This is a frequently overlooked closing cost that we always include in your budget.

Other Common Closing Costs in Ontario

Beyond the “big six,” you should also budget for these other potential expenses.

• Home Inspection: While technically done before closing, this is a key home-buying expense. It’s highly recommended to identify any potential issues with the property.

  • Cost: $400 to $600.

• Property Survey (if needed): A survey shows the property’s boundaries and structure locations. Lenders often accept title insurance instead of a new survey, but if a new one is required (especially for some rural properties), it can be costly.

  • Cost: $1,000 to $2,000+.

• Adjustments (Property Tax & Utilities): You will have to reimburse the seller for any property taxes or condo fees they prepaid beyond the closing date. Your lawyer calculates this to the exact day.

  • Cost: Varies, but budget a few hundred to over a thousand dollars.

• Status Certificate (for Condos): If you’re buying a condo, your lawyer must review the Status Certificate, which outlines the condo corporation’s financial health.

  • Cost: $100.

• Tarion Warranty Fee (New Builds): If you’re buying a brand new home from a builder, you must pay the Tarion new home warranty enrollment fee at closing.

  • Cost: $700 to $1,500+, based on the home’s price.

• Miscellaneous Costs: Don’t forget to budget for home insurance (your first premium is often due at or before closing), moving costs, and utility setup fees.

How to Budget and Pay for Your Closing Costs

Remember the 1.5% to 4% rule and always aim for the higher end to be safe. Here’s how to prepare:

1. Save in a Separate Account: Earmark your closing cost funds in a dedicated high-interest savings account, separate from your down payment.

2. Get Quotes Early: Contact a real estate lawyer for a detailed quote on their fees and disbursements.

3. Get Pre-Approved: A mortgage pre-approval from Turkin Mortgage doesn’t just tell you what you can borrow. We provide a detailed financial breakdown, including your estimated closing costs in Ontario, so you know your total cash-to-close amount.

4. Explore Cash-Back Mortgages: Some lenders offer “cash-back” mortgages that provide you with a lump sum (e.g., 1-5% of the mortgage amount) on closing. This cash can be used to cover all your closing costs. We can help you determine if this is the right strategy for you.

Frequently Asked Questions About Closing Costs in Ontario

Can I add closing costs to my mortgage loan?

In most cases, no. You cannot directly roll closing costs like land transfer tax or legal fees into your mortgage. These must be paid with your own funds. The main strategy to “finance” them is by using a cash-back mortgage, which your Turkin Mortgage advisor can discuss with you.

When do I have to pay closing costs?

You pay the bulk of your closing costs on closing day. A day or two before closing, your lawyer will give you a final “Statement of Adjustments” with the exact amount you need to bring. You will typically provide this as a single bank draft or certified cheque to your lawyer, who then pays all the separate parties (the government for taxes, the seller, etc.).

Are closing costs tax deductible?

For your primary residence, no, closing costs are not tax-deductible on your income tax return. They are considered part of the capital cost of acquiring your home.

How much are lawyer fees, and what do they cover?

Expect $1,100 to $1,800 (plus HST). This fee covers the lawyer’s professional services and their disbursements. This includes performing the title search, registering the deed and mortgage, ensuring the title is clear, handling all the funds in trust, and providing you with legal advice throughout the process.

Do I really need title insurance?

Yes. Nearly all lenders require it as a condition of your mortgage. Even if you’re a cash buyer, it’s highly recommended. It protects you from fraud, errors in public records, and boundary disputes for a relatively low one-time fee. It’s essential peace of mind.

Let Turkin Mortgage Simplify Your Closing Costs

Navigating the expenses of buying a home can be complex, but you don’t have to do it alone. The team at Turkin Mortgage is dedicated to providing clarity and finding you the best financing solutions.

• No Surprises: We provide a detailed cost estimate right from the start.

• Better Rates: Access to 35+ lenders means we shop for the best rates for you.

• Expert Solutions: We can find cash-back mortgages to help cover your closing costs.

Contact us today to get pre-approved and receive a personalized estimate of your total homebuying costs.