How much are closing costs on a $600,000 home in Ontario?

Provincial land transfer tax on $600,000 is about $8,475 before refunds. Add legal fees of roughly $1,500 to $2,500, title insurance, a possible appraisal, and adjustments, and most buyers land between $11,000 and $16,000 total, roughly 2 to 2.7 percent. In Toronto, add the city tax of about $7,475 after its first-time refund considerations.

Can closing costs be added to my mortgage?

Generally, no. Land transfer tax and legal fees must be paid in cash at closing, which is why lenders verify you have about 1.5 percent of the price saved beyond your down payment. The one big exception is the mortgage default insurance premium, which is normally added to the mortgage balance, though its provincial sales tax is due in cash.

Do first-time buyers pay less land transfer tax in Ontario?

Yes. Ontario refunds up to $4,000 of the provincial tax for eligible first-time buyers, and Toronto refunds up to $4,475 of its tax. Eligibility requires that you and your spouse have never owned a home anywhere in the world. Your lawyer confirms eligibility and claims the refunds as part of closing.

FIRST-TIME HOMEBUYERS · BY VISHVESH PATEL · NOV 13, 2026

Closing Costs in Ontario Explained: What Buyers Actually Pay

Short answer: In Ontario, closing costs typically total 1.5 to 4 percent of the purchase price, on top of your down payment. The biggest item is Ontario land transfer tax, plus an additional Toronto land transfer tax if the home is inside Toronto. Legal fees, title insurance, appraisal, and adjustments make up most of the rest. First-time buyers may qualify for land transfer tax refunds that cut the tax significantly.

Ontario land transfer tax

Every Ontario buyer pays provincial land transfer tax when a property is registered, calculated on a sliding scale set by the Government of Ontario: 0.5 percent on the first $55,000, 1 percent up to $250,000, 1.5 percent up to $400,000, and 2 percent on the portion above $400,000. On a $700,000 home, the provincial tax is about $10,475 before any refunds.

Toronto's additional land transfer tax

Buy inside Toronto and you pay a second, similar tax to the City of Toronto, roughly doubling the land transfer tax bill on the same home. This is the single biggest reason Toronto closing costs sit at the high end of the range. Always confirm whether a property is inside the city boundary before budgeting.

First-time buyer refunds

Ontario offers first-time buyers a refund of up to $4,000 on the provincial tax, and Toronto offers up to $4,475 on its tax. Together they can save a first-time buyer over $8,000 on a Toronto purchase. Your real estate lawyer applies for these refunds at closing, and eligibility depends on you and your spouse never having owned a home anywhere before.

Legal fees and disbursements

Your real estate lawyer handles the title search, registration, mortgage instructions, and the transfer itself. Legal fees plus disbursements (the lawyer's out-of-pocket costs) commonly total $1,500 to $2,500 or more depending on the file. This is not the place to bargain hunt; a careful lawyer protects the largest purchase of your life.

The smaller items that still add up

Title insurance: a one-time premium, often a few hundred dollars, protecting against title defects and fraud
Appraisal: if your lender requires one, typically $300 to $500
Adjustments: reimbursing the seller for prepaid property taxes, utilities, or condo fees, which varies widely
Home insurance: must be in place for closing day; the first premium is your cost
Registration and government fees: modest charges to register the deed and mortgage
Moving and connections: movers, utility hookups, and immediate home needs

Where the insurance premium fits

If your down payment is under 20 percent, mortgage default insurance from CMHC or another insurer is required, but the premium is usually added to your mortgage rather than paid in cash at closing. Provincial sales tax on that premium, however, is payable at closing in Ontario, a detail that surprises many buyers.

How to budget properly

Take your price, apply the land transfer tax scale (twice in Toronto), subtract any first-time refunds, then add legal fees and a cushion for adjustments. Lenders also want to see that you have these funds available, separate from your down payment, so closing cost savings should sit in your accounts alongside it.

Buying a brand-new home? Add HST to your list

Newly built homes and major renovations are subject to HST on the purchase price, unlike resale homes, which are generally exempt. On a new build, that tax can add tens of thousands of dollars at closing, partly offset by the federal and Ontario New Housing Rebate if the home will be your primary residence and you meet the criteria. Builder prices are sometimes advertised net of expected rebates, which hides the true closing bill. If you are buying new construction, confirm with your lawyer exactly what tax applies before you sign the purchase agreement.

The bottom line

Closing costs are predictable once someone shows you the list; they only hurt when they are a surprise. If you want your exact closing costs estimated for a specific price and city, book a free call with me, Vishvesh Patel. There is no cost to you for my service, and you will budget with confidence.