Closing Costs in Ontario: What to Budget Before You Buy.
An estimate of the three big closing costs: legal fees, land transfer tax and the statement of adjustments. You'll see how buying in Toronto compares with the rest of Ontario. Will Mansour, working with buyers and sellers since 2004.
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The Three Main Closing Costs
Your down payment is only part of the cash you need on closing day. Plan for these three costs too.
Legal Fees
A real estate lawyer must close the deal. Their bill covers the fee itself plus disbursements such as title searches, title insurance and registration costs, plus HST.
Land Transfer Tax
A provincial tax charged on the purchase price, paid on closing. In Toronto a second, municipal land transfer tax is added on top.
Statement of Adjustments
A split of costs such as property tax, utilities and condo fees between buyer and seller as of the closing date. This amount can go up or down.
Land Transfer Tax: Ontario vs. Toronto
Ontario's land transfer tax applies to every purchase in the province. Buying in the City of Toronto adds the Municipal Land Transfer Tax (MLTT). Up to $2,000,000, Toronto's brackets match the province's, so Toronto buyers pay roughly double the land transfer tax, which makes Toronto noticeably more expensive.
Ontario (provincial)
- 0.5% on the first $55,000
- 1.0% from $55,000 to $250,000
- 1.5% from $250,000 to $400,000
- 2.0% above $400,000
- 2.5% above $2,000,000 (one or two single family residences)
Toronto (added on top)
- Same brackets as Ontario up to $2,000,000
- 2.5% from $2M to $3M
- 4.4% from $3M to $4M and 5.45% from $4M to $5M
- Higher tiers above $5M (rates as of April 1, 2026, for one or two single family residences)
- Toronto adds an MLTT admin fee of $102.56 + HST
Example Estimates
Land transfer tax only, for a resale home with one single family residence, before any first-time buyer refund.
$700,000 home
$10,475
Ontario (provincial only)
$20,950
Toronto (provincial + municipal), $10,475 more
$1,000,000 home
$16,475
Ontario (provincial only)
$32,950
Toronto (provincial + municipal), $16,475 more
$1,500,000 home
$26,475
Ontario (provincial only)
$52,950
Toronto (provincial + municipal), $26,475 more
| Price | Ontario total | Toronto: provincial | Toronto: municipal | Toronto total |
|---|---|---|---|---|
| $700,000 | $10,475 | $10,475 | $10,475 | $20,950 |
| $1,000,000 | $16,475 | $16,475 | $16,475 | $32,950 |
| $1,500,000 | $26,475 | $26,475 | $26,475 | $52,950 |
First-Time Buyer Refunds
Eligible first-time buyers can get up to $4,000 back on the Ontario tax and, in Toronto, up to $4,475 back on the municipal tax. You must be at least 18, live in the home within nine months and never have owned a home anywhere in the world. Your spouse must not have owned one while you were together. Toronto also requires Canadian citizenship or permanent residence. Your lawyer usually claims the refund at closing.
| Price | Ontario, after refund | Toronto, after both refunds |
|---|---|---|
| $700,000 | $6,475 | $12,475 |
| $1,000,000 | $12,475 | $24,475 |
| $1,500,000 | $22,475 | $44,475 |
All figures are estimates calculated from the official brackets (Ontario Ministry of Finance; City of Toronto, rates as of April 1, 2026). Non-resident speculation taxes, new-build HST rules and other special cases are not included.
Legal Fees: Get a Quote
Legal fees vary by lawyer, by property type (freehold, condo, new build) and by how complex the deal is, so there is no single correct number. Rather than rely on a figure from the internet, ask two or three real estate lawyers for a written, all-in quote. Check that it covers:
- The lawyer's fee for the purchase and the mortgage
- Title search and title insurance
- Registering the deed and the mortgage
- Searches for tax, utility and work-order issues
- Status certificate review for condos
- HST and any other disbursements
The Statement of Adjustments
Before closing, your lawyer prepares a statement of adjustments. It credits or charges each side so that everyone pays only for the days they own the home. Common items:
Property Tax
If the seller has prepaid the year's taxes, the buyer repays the portion from closing onward. If taxes are owing, the seller credits the buyer.
Utilities
Prepaid items such as water or a fuel tank may be adjusted. Meters are usually read on closing day.
Condo Fees
If the seller has paid the month's condo fee, the buyer repays the days after closing.
Deposit & Other Credits
Your deposit is credited, along with any rental items or other agreed amounts, to arrive at the final balance due.
Selling? Sellers don't pay land transfer tax. They usually pay their own lawyer, the agreed brokerage commission, the mortgage payout and any prepayment penalty, plus their side of the adjustments. Ask your lawyer and lender for exact figures.
Closing Costs FAQ
How much is land transfer tax in Ontario?
Ontario's land transfer tax is charged in brackets: 0.5% up to $55,000, 1.0% to $250,000, 1.5% to $400,000, 2.0% above $400,000, and 2.5% above $2,000,000 for homes with one or two single family residences. On a $1,000,000 home that works out to $16,475.
Why are closing costs higher in Toronto?
Toronto charges its own municipal land transfer tax on top of the provincial tax. Up to $2,000,000 the city uses the same brackets as the province, so the land transfer tax roughly doubles. On a $1,000,000 home the combined total is $32,950, versus $16,475 elsewhere in Ontario.
Do first-time buyers get a land transfer tax refund?
Yes, if you qualify. Ontario refunds up to $4,000, and the City of Toronto rebates up to $4,475 of its municipal tax. You must be at least 18, move in within nine months and never have owned a home anywhere in the world. Other rules apply, so confirm with your lawyer.
How much are real estate legal fees in Ontario?
Fees vary by lawyer, by property type and by how complex the deal is, so ask two or three real estate lawyers for a written quote. Ask what the quote includes: the fee itself, title insurance, searches, registration costs and HST.
What is a statement of adjustments?
It is the closing statement your lawyer prepares that splits ongoing costs between buyer and seller as of the closing date. Common items are property tax, prepaid utilities and condo fees. It shows the final balance the buyer must pay to close.
What do sellers pay at closing?
Sellers do not pay land transfer tax. Typical seller costs include their real estate lawyer, the agreed brokerage commission, paying out the mortgage (plus any prepayment penalty), and their share of the statement of adjustments.
Estimates only. This is not legal or tax advice. Rates and refunds change, and your situation may differ. Confirm every figure with your real estate lawyer before you make an offer or close.
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