All the cash you actually need at closing — Land Transfer Tax, lawyer fees, title insurance, status certificate, CMHC PST, tax adjustments and more. Updated for 2026 Ontario rates and Toronto MLTT.
Real answers about Ontario closing costs — lawyer fees, title insurance, CMHC PST, tax adjustments and more.
A safe rule of thumb is 1.5% to 4% of the purchase price on top of your down payment. On a $850,000 home, that's roughly $12,750 to $34,000. The biggest line items are Land Transfer Tax, lawyer fees, title insurance, and (if buying a condo) a status certificate. Buyers in Toronto pay roughly double the LTT of buyers elsewhere in Ontario.
Typical Ontario real estate lawyer fees range from $1,500 to $2,500 for a straightforward purchase, including disbursements (registration, software, courier, etc.). Title insurance is usually quoted separately and runs $250-$500 depending on property value. Some lawyers bundle these — always ask for the full all-in quote upfront.
Title insurance isn't legally required, but every Ontario lender requires it for any mortgaged purchase, and most lawyers strongly recommend it for cash purchases too. It's a one-time premium that protects against title fraud, survey defects, and prior-owner liens. Premiums are based on property value and run roughly $250-$500 for typical residential purchases.
On closing day, your lawyer reconciles property taxes between you and the seller. If the seller has prepaid taxes for a period that extends beyond closing, you reimburse them for the days you'll own the home. If taxes are unpaid for the year-to-date, the seller credits you. The amount is prorated daily based on the annual tax bill and your closing date — typically $200-$800 either direction on a typical GTA home.
No. HST does NOT apply to resale residential homes in Ontario. HST is only charged on NEWLY built homes from a builder (new construction, pre-construction condos, builder inventory). For new builds, a New Housing Rebate offsets a portion of the HST automatically through the builder for principal residences. Resale buyers can ignore this entirely.
When your down payment is less than 20% of the purchase price, your lender requires CMHC (or Sagen/Canada Guaranty) mortgage default insurance. The insurance premium itself is added to your mortgage balance, but Ontario charges 8% PST on the premium and that PST is payable in cash at closing. On a $30,000 CMHC premium, you'd owe $2,400 PST on closing day. This catches a lot of first-time buyers off guard.
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