Closing Costs in Ontario: What to Budget When Buying (2026)

Updated October 2026 · by Neso Basara, licensed real estate agent

Part of the first-time home buyer guide for ontario (2026)

Closing costs are the taxes and fees a buyer pays to complete a home purchase, on top of the price. Budget 1.5% to 4% of the price for closing costs, paid in cash on top of your down payment. Land transfer tax is almost always the biggest item; legal fees, title insurance, the tax on mortgage insurance and adjustments make up most of the rest. According to the Financial Consumer Agency of Canada, lenders typically want to see at least 1.5% of the price set aside for closing costs before they approve your mortgage.

Closing costs calculator

Enter the price and your down payment to see what you'll pay on closing, line by line.

Ontario closing costs calculator

Closing costs$16,6652.2% of the price
Land transfer taxOntario only; no municipal tax here
$11,475
Tax on mortgage insurance8% of the $28,000 premium, which goes on the mortgage
$2,240
Legal feesEstimate, including disbursements
$2,000
Title insuranceEstimate
$450
Home inspectionEstimate, if you get one
$500
Cash you need, with your down payment
$66,665

Legal fees, title insurance and the inspection are typical estimates; get real quotes. Mortgage insurance uses the 25-year premium. Not included: adjustments for prepaid property tax or condo fees, moving, and anything your lender charges.

What closing costs include

Cost Typical amount When you pay it
Land transfer tax 0.5% to 2.5% of the price, in bands On closing
Tax on mortgage insurance 8% of the premium, if you put down less than 20% On closing
Legal fees and disbursements About $1,500 to $2,500 On closing
Title insurance About $250 to $500 On closing, through your lawyer
Property tax and condo fee adjustments Depends on what the seller prepaid On closing
Home inspection About $400 to $600 Before your offer is firm
Condo status certificate Up to $100 Before your offer is firm
Home insurance Your first premium Before closing

Closing cost ranges are typical for Waterloo Region; get real quotes for the ones you can shop around for.

Closing costs in Waterloo Region

The table below shows what closing costs come to on the typical home in each Waterloo Region city, at the minimum down payment.

CityDetachedFreehold townhouseCondo apartment
Kitchener$16,024
$12,024 for a first-time buyer · on a $722,000 median
$13,874
$9,874 for a first-time buyer · on a $628,000 median
$7,486
$3,971 for a first-time buyer · on a $336,000 median
Waterloo$18,940
$14,940 for a first-time buyer · on a $849,450 median
$14,720
$10,720 for a first-time buyer · on a $665,000 median
$8,641
$4,641 for a first-time buyer · on a $400,000 median
Cambridge$15,864
$11,864 for a first-time buyer · on a $715,000 median
$13,576
$9,576 for a first-time buyer · on a $615,000 median
$8,100
$4,100 for a first-time buyer · on a $370,000 median
Woolwich$19,639
$15,639 for a first-time buyer · on a $880,000 median
$13,713
$9,713 for a first-time buyer · on a $621,000 median
Too few sales
Wilmot$19,411
$15,411 for a first-time buyer · on a $870,000 median
Too few salesToo few sales
Wellesley$20,669
$16,669 for a first-time buyer · on a $925,000 median
Too few salesToo few sales
North Dumfries$18,839
$14,839 for a first-time buyer · on a $845,000 median
Too few salesToo few sales

Estimated closing costs on the median sold price at the minimum down payment, by city and property type: land transfer tax, the tax on mortgage insurance, and typical legal, title insurance and inspection costs. Medians cover the 90 days of sales ending October 26, 2026; fewer than 10 sales and we don't show a figure. How we calculate this.

See what you can afford, with closing costs included →

Closing costs breakdown

Land transfer tax

The Ontario Ministry of Finance charges land transfer tax on every purchase, from 0.5% to 2.5% of the price in bands. On a $750,000 home it's $11,475. First-time buyers can get up to $4,000 of it refunded, and Waterloo Region has no municipal land transfer tax on top. Calculate your land transfer tax →

Tax on mortgage insurance

With less than 20% down, your mortgage must be insured, and the premium is added to your mortgage. Ontario's 8% retail sales tax on the premium can't be added, so it's due in cash on closing. On the minimum down payment for a $750,000 home, that's $2,240. See how the premium works →

Legal fees and disbursements

You need a real estate lawyer to close. They search the title, register the sale and your mortgage, prepare the statement of adjustments, and move the money between you, your lender and the seller. Their fee plus disbursements (search fees, registration fees and other out-of-pocket costs) usually lands between $1,500 and $2,500.

Title insurance

Title insurance protects you and your lender against problems with the property's title, such as fraud, errors in the records or work done without permits by a past owner. Title insurance is a one-time premium, usually $250 to $500, arranged and paid through your lawyer.

Adjustments

Adjustments repay the seller, on closing, for anything they prepaid that covers time after you take over. The usual ones are property tax, condo fees and rental contracts for equipment like a water heater. They show up on the statement of adjustments your lawyer prepares, and they can be a few hundred dollars or a few thousand, depending on the time of year.

Home inspection

A home inspection usually costs $400 to $600 and happens before your offer is firm. It's optional, but it's the main way to find out about the roof, furnace, foundation and wiring before you're committed.

Condo status certificate

A condo status certificate shows the condominium corporation's finances, the reserve fund, any special assessments and the rules. According to the Condominium Authority of Ontario, the corporation can charge up to $100 for it. Have your lawyer read it before your offer is firm.

Home insurance

Your lender needs proof of home insurance before closing. You pay the first premium, monthly or for the year, before you get the keys.

Buying new construction

New builds come with their own closing costs. Builder agreements often add closing adjustments such as utility connection fees, the Tarion warranty enrolment fee and increases in development charges, and these can add thousands to what you pay on closing.

Land transfer tax on a new home is usually calculated on the price including harmonized sales tax (HST). Have your lawyer review the agreement, and its list of adjustments, before you sign.

When and how you pay

Most closing costs are paid through your lawyer. A few days before closing, they send you a statement showing the balance due: your down payment (less the deposit you already paid), land transfer tax, the tax on mortgage insurance, their fees and the adjustments. You send them that amount by bank draft or wire transfer, and they pay everyone on closing day.

The home inspection, status certificate and home insurance are paid separately, before closing.

What lenders check

Lenders typically want to see enough money for closing costs, about 1.5% of the price, on top of your down payment, and they'll ask for statements to prove it. On a $750,000 home, that's $11,250. If your closing costs will be higher, as they are for most buyers here at that price, plan for the real number, not just the lender's minimum.

Plan for life after closing too: moving, utility hookups, furniture and the first repairs aren't closing costs, but they come due in the same few weeks.

Frequently asked questions

How much are closing costs in Ontario?
Closing costs in Ontario are usually 1.5% to 4% of the purchase price, paid in cash on top of the down payment. On a $750,000 home with the minimum down payment, expect roughly $16,000 to $17,000, mostly land transfer tax.
Can closing costs be added to my mortgage?
Closing costs generally can't be added to your mortgage; they're paid in cash on closing. The one exception is the mortgage insurance premium itself, which is added to the mortgage, but the 8% sales tax on it still has to be paid in cash.
Who pays closing costs, the buyer or the seller?
The buyer pays the closing costs on a home purchase, including land transfer tax, legal fees, title insurance and adjustments. The seller has their own costs, such as their legal fees and paying off their mortgage.
How much are lawyer fees for buying a house in Ontario?
Lawyer fees for buying a house in Ontario are usually $1,500 to $2,500, including disbursements like search and registration fees. Ask for an all-in quote before you hire one, so there are no surprises on closing.
Are closing costs lower for first-time buyers?
Yes, closing costs are lower for first-time buyers in Ontario by up to $4,000, through the land transfer tax refund. The other closing costs, such as legal fees, title insurance and adjustments, are the same for everyone.
When do I pay closing costs?
Most closing costs are paid through your lawyer, a few days before the closing date, by bank draft or wire transfer. The home inspection, condo status certificate and home insurance are paid separately, before closing.

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Sources

General information for Ontario, not legal, tax or financial advice. Rules and amounts change; confirm the details for your situation with a lawyer, accountant or lender.