Closing costs in Ontario (2026): land transfer tax and more

Closing costs in Ontario are the cash you pay on top of your down payment: land transfer tax, legal fees, title insurance, adjustments and, with an insured mortgage, 8% sales tax on the premium. Land transfer tax is the biggest. On an $800,000 home it's $12,475, or $24,950 in the City of Toronto, which charges its own tax too.

Here's what each cost is, how it's calculated and how first-time buyers can cut it.

$12,475Ontario land transfer taxAnywhere in Ontario

$24,950Land transfer tax in the City of TorontoOntario LTT + Toronto MLTT

$16,475In Toronto for a first-time buyerAfter both refunds ($8,475 saved)

3.1%Toronto land transfer tax as a share of the price1.6% elsewhere in Ontario

$2,503Sales tax on the CMHC premium, paid in cashMinimum down, 30-year amortization

$100Most a condo can charge for a status certificateIncluding taxes

Excludes legal fees, title insurance, inspection and adjustments, which vary by home and provider.

Source: Ontario Ministry of Finance (LTT rates, $4,000 refund); City of Toronto (MLTT rates, $4,475 rebate); FCAC minimum down payment rules; CMHC premium table (+0.20% for 30-yr amortization); Ontario 8% RST on premiums; Condominium Authority of Ontario. Dibz calculation.

Ontario land transfer tax (LTT)

Ontario charges land transfer tax on almost every home purchase. It's calculated in brackets on the "value of the consideration" (usually the purchase price). For a property with one or two single-family residences, the rates are:

Like income tax brackets, each rate applies only to the slice of the price inside that band.

Example: on an $800,000 home, Ontario LTT is $275 + $1,950 + $2,250 + $8,000 = $12,475.

First-time buyer refund: up to $4,000

Ontario refunds up to $4,000 of land transfer tax for eligible first-time buyers. That fully covers the tax on homes up to $368,000 and reduces it on more expensive homes. To qualify, you generally must:

• Be at least 18 and a Canadian citizen or permanent resident (there's an 18-month window to become a permanent resident after the purchase).
• Never have owned a home, or an interest in a home, anywhere in the world.
• If you have a spouse, they can't have owned a home while you were spouses.
• Live in the home as your principal residence within nine months of the transfer.

Most buyers claim it at registration through their lawyer. If you miss it, you can apply within 18 months of registration.

Toronto municipal land transfer tax (MLTT)

If the home is in the City of Toronto, you also pay the city's municipal land transfer tax. For one or two single-family residences, the rates up to $3 million mirror Ontario's:

Above $3 million, Toronto applies higher graduated luxury rates. Since April 1, 2026, they are 4.40% on the portion from $3 million to $4 million, 5.45% to $5 million, 6.50% to $10 million, 7.55% to $20 million and 8.60% above that. Check the City's current rate table if you're shopping in that range.

Example: on the same $800,000 home, Toronto MLTT is also $12,475, for combined land transfer tax of $24,950.

Toronto first-time buyer rebate: up to $4,475

Toronto rebates up to $4,475 of MLTT for first-time buyers, which fully covers the tax on homes up to $400,000. The conditions are similar to Ontario's: 18 or older, a citizen or permanent resident, never owned a home anywhere in the world, and moving in within nine months. Apply within 18 months of the purchase if it isn't claimed at closing.

Example with both rebates: a first-time buyer purchasing that $800,000 Toronto home would pay $12,475 − $4,000 = $8,475 to Ontario and $12,475 − $4,475 = $8,000 to Toronto, for a total of $16,475 instead of $24,950.

The gap holds at every price: buying in Toronto doubles the tax. At $1 million it's $32,950 in Toronto versus $16,475 elsewhere in Ontario. The refunds save a first-time buyer up to $8,475 in Toronto and $4,000 elsewhere, so a $1 million Toronto first-timer still pays $24,475.

• City of Toronto (Ontario + MLTT)
• City of Toronto, first-time buyer
• Outside Toronto (Ontario LTT only)
• Outside Toronto, first-time buyer

First-time buyer lines assume the full Ontario refund (up to $4,000) and, in Toronto, the full MLTT rebate (up to $4,475).

Source: Ontario Ministry of Finance (LTT rates, $4,000 refund); City of Toronto (MLTT rates, $4,475 rebate). Dibz calculation.

Show the numbers

	City of Toronto (Ontario + MLTT)	City of Toronto, first-time buyer	Outside Toronto (Ontario LTT only)	Outside Toronto, first-time buyer
$500K	$12,950	$4,475	$6,475	$2,475
$600K	$16,950	$8,475	$8,475	$4,475
$700K	$20,950	$12,475	$10,475	$6,475
$800K	$24,950	$16,475	$12,475	$8,475
$900K	$28,950	$20,475	$14,475	$10,475
$1M	$32,950	$24,475	$16,475	$12,475
$1.1M	$36,950	$28,475	$18,475	$14,475
$1.2M	$40,950	$32,475	$20,475	$16,475
$1.3M	$44,950	$36,475	$22,475	$18,475
$1.4M	$48,950	$40,475	$24,475	$20,475
$1.5M	$52,950	$44,475	$26,475	$22,475

Outside Toronto? Mississauga, Brampton, Vaughan, Markham and the rest of the GTA don't charge a municipal land transfer tax, so you pay only Ontario's LTT.

That changes the math between cities. Toronto's median asking price on October 2, 2026 ($799,000) was the lowest of the seven GTA municipalities below, yet the tax on it ($24,910) was higher than on Mississauga's higher median ($878,000, tax $14,035). Only Oakville, with a median asking price of $1,499,000, came out higher, at $26,455.

• Ontario LTT
• Toronto MLTT

Median asking price across active detached, semi, townhouse and condo listings in each municipality, sorted from lowest to highest. Asking prices, not sale prices.

Source: Dibz analysis of active MLS® listings (TRREB, via PropTx), Oct 2, 2026; Ontario Ministry of Finance (LTT rates, $4,000 refund); City of Toronto (MLTT rates, $4,475 rebate). Dibz calculation.

Show the numbers

	Ontario LTT	Toronto MLTT
Toronto ($799,000)	$12,455	$12,455
Brampton ($867,250)	$13,820	$0
Mississauga ($878,000)	$14,035	$0
Markham ($1,080,000)	$18,075	$0
Vaughan ($1,147,500)	$19,425	$0
Richmond Hill ($1,298,000)	$22,435	$0
Oakville ($1,499,000)	$26,455	$0

Foreign buyers

Buyers who aren't Canadian citizens or permanent residents may also owe Ontario's 25% Non-Resident Speculation Tax and, in Toronto, the 10% Municipal Non-Resident Speculation Tax. See our newcomers guide.

Sales tax on mortgage insurance (CMHC premium)

If your down payment is under 20%, you'll pay a mortgage insurance premium (from CMHC, Sagen or Canada Guaranty). The premium itself is usually added to your mortgage, but in Ontario the 8% provincial sales tax on the premium must be paid at closing and can't be financed.

With the minimum down payment, that's $1,216 to $1,277 on a $400,000 home, about $2,100 to $2,200 at $700,000 and $4,400 to $4,620 on a home just under $1.5 million. The higher figure in each pair is for a 30-year amortization, which carries a slightly higher premium.

• 25-year amortization
• 30-year amortization

Premiums from CMHC's table for the minimum down payment (above 90% loan-to-value: 4.00%, plus 0.20% for 30 years). A bigger down payment means a lower premium and less tax.

Source: FCAC minimum down payment rules; CMHC premium table (+0.20% for 30-yr amortization); Ontario 8% RST on premiums. Dibz calculation.

Show the numbers

	25-year amortization	30-year amortization
$400K	$1,216	$1,277
$500K	$1,520	$1,596
$600K	$1,808	$1,898
$700K	$2,096	$2,201
$800K	$2,384	$2,503
$900K	$2,672	$2,806
$1M	$2,960	$3,108
$1.2M	$3,536	$3,713
$1.5M (just under)	$4,400	$4,620

Legal fees and disbursements

You'll need a real estate lawyer to review documents, search title, handle funds, register the transfer and your mortgage, and calculate adjustments. You'll pay their fee plus disbursements such as registration fees, searches and courier costs, with HST on taxable items. Get a written quote up front and ask what's included.

Title insurance

Most lenders require title insurance, which protects against problems like title fraud, survey issues or work orders the previous owner didn't disclose. It's a one-time premium paid at closing. Your lawyer will usually arrange it.

Adjustments

On closing day, your lawyer settles up with the seller for costs that have been prepaid or are owed:

• Property taxes. If the seller has paid ahead, you reimburse them for your share.
• Condo fees. Same idea for a prepaid monthly fee.
• Utilities and fuel. For example, a full oil or propane tank.

Adjustments can go either way, but buyers often owe something here. Your lawyer's statement of adjustments shows the exact figures.

Other costs to plan for

• Home inspection. Strongly recommended before you commit.
• Appraisal. Some lenders charge for it, and some cover it.
• Status certificate review (condos). A condo corporation can charge no more than $100, including taxes, for a status certificate delivered within 10 days. Your lawyer will usually charge to review it.
• Home insurance. Your lender will want proof of coverage before closing.
• Moving costs and a cushion for repairs, furniture and utility setup.

Extra costs on new builds

A new home from a builder can come with its own closing adjustments, such as utility connection fees or development charges passed through in the agreement. Read the schedule of adjustments carefully, ideally with your lawyer before you sign.

On the plus side, new homes may qualify for GST/HST relief. First-time buyers can get a federal rebate of up to $50,000 on eligible new homes (full relief on homes up to $1 million). Ontario's enhanced HST new housing rebate is available for agreements signed with a builder from April 1, 2026 to March 31, 2027. Each has eligibility rules, so check CRA's pages for the details.

How much are closing costs in Ontario?

It depends heavily on price and location. Land transfer tax is usually the largest single cost, and in Toronto it's twice as big: about 3.1% of an $800,000 price and 3.3% at $1 million, versus about 1.6% elsewhere in Ontario, before any first-time refunds.

• City of Toronto
• Outside Toronto

Single-family home. Because the rates are graduated, the share rises with the price.

Source: Ontario Ministry of Finance (LTT rates, $4,000 refund); City of Toronto (MLTT rates, $4,475 rebate). Dibz calculation.

Show the numbers

	City of Toronto	Outside Toronto
$500K	2.6%	1.3%
$600K	2.8%	1.4%
$700K	3%	1.5%
$800K	3.1%	1.6%
$900K	3.2%	1.6%
$1M	3.3%	1.7%
$1.1M	3.4%	1.7%
$1.2M	3.4%	1.7%
$1.3M	3.5%	1.7%
$1.4M	3.5%	1.8%
$1.5M	3.5%	1.8%

A simple way to plan: work out your land transfer tax first, then add the sales tax on your mortgage insurance premium if you're putting down less than 20%, and an allowance for legal fees, title insurance, inspection, adjustments and moving. Get written quotes for the variable items, since they depend on the home and the provider.

To see the exact figures for a specific home, open it on Dibz and use the mortgage calculator. It's built for Ontario: it works out your monthly payment along with the CMHC premium and its sales tax, Ontario and Toronto land transfer tax, first-time buyer rebates, the stress test and your total cash to close. You can find homes on the Dibz map and run the numbers on each one before you book a showing.

Closing-day checklist

Most of the work happens in the days before closing. Here's the order to expect.

1. 1
   Confirm your mortgageOnce the deal is firm

   Make sure your mortgage is approved and your lender has instructed your lawyer.

2. 2
   Send proof of home insuranceBefore closing

   Your lender needs it before it will release the mortgage funds.

3. 3
   Transfer your fundsA few days before closing

   Send the balance of your down payment and closing costs to your lawyer's trust account. Ask exactly when they need it.

4. 4
   Sign your documentsClosing week

   Sign what your lawyer prepares, including any land transfer tax refund statements.

5. 5
   Do the final walk-throughIf your agreement allows one

   Check that the home and the included items are as agreed.

6. 6
   Collect your keysClosing day

   Once the deal is registered, the home is yours.

For the full journey from pre-approval to keys, see our first-time home buyer guide. Saving for these costs? Our FHSA and Home Buyers' Plan guide explains how to do it tax-free, and if you're buying with a partner, see buying a home together for how spouses affect first-time refunds.

FAQ

How much are closing costs in Ontario?

Land transfer tax is the biggest part: about 1.3% to 1.8% of the price outside Toronto and 2.6% to 3.5% in Toronto, for homes from $500,000 to $1.5 million, before first-time refunds. Add 8% sales tax on any mortgage insurance premium, plus legal fees, title insurance, an inspection and adjustments, which vary by home.

What is the land transfer tax on a $500,000 home in Ontario?

Ontario LTT on $500,000 is $6,475. A first-time buyer who qualifies for the full refund pays $2,475. In the City of Toronto, the municipal tax adds another $6,475, for $12,950 in total, or $4,475 for a first-time buyer who gets both refunds.

How much is land transfer tax on a $1 million home in Toronto?

Ontario LTT is $16,475 and Toronto MLTT is also $16,475, for $32,950 in total. A first-time buyer who qualifies for both rebates would pay $24,475.

Do I pay Toronto's land transfer tax in Mississauga or Vaughan?

No. Toronto's municipal land transfer tax applies only to properties in the City of Toronto. Elsewhere in the GTA you pay only Ontario's land transfer tax.

Can I add land transfer tax to my mortgage?

Generally no. Land transfer tax is paid at closing from your own funds, which is why it needs to be part of your savings plan.

Who qualifies as a first-time buyer for the land transfer tax refund?

You must never have owned a home anywhere in the world, be a Canadian citizen or permanent resident, and move in within nine months. If you have a spouse, they can't have owned a home while you were spouses.

Is the PST on mortgage insurance a closing cost?

Yes. In Ontario, the 8% sales tax on your mortgage insurance premium is paid in cash at closing.

Sources

• Ontario: Calculating land transfer tax
• Ontario: Land transfer tax refunds for first-time homebuyers
• City of Toronto: MLTT rates and fees
• City of Toronto: MLTT rebate opportunities
• Ontario: Retail sales tax on insurance
• CMHC: Premium information for homeowner loans
• FCAC: Down payment
• City of Toronto: MLTT and Municipal Non-Resident Speculation Tax
• Condominium Authority of Ontario: Status certificates
• CRA: First-time home buyers' GST/HST rebate
• CRA: Ontario temporary enhanced new housing rebate
• Municipal median asking prices: Dibz analysis of active MLS® listings (TRREB, via PropTx), October 2, 2026. These are asking prices of homes for sale, not sale prices.

This article is general information, not financial or legal advice. Tax rates and rebates can change; confirm current figures with official sources and your lawyer.