What Are Closing Costs in Ontario?
Closing costs are one of the most overlooked parts of buying a home. Understanding them upfront means no surprises on possession day.
Closing Costs Breakdown for Ontario Buyers
Ontario Land Transfer Tax
Varies
This is the biggest closing cost for most Ontario buyers. It is calculated on a tiered scale based on the purchase price. First-time buyers receive a rebate of up to $4,000, which covers most or all of the tax on homes under $368,000 — and significantly reduces it on higher-priced properties. For a $450,000 home, the gross LTT is approximately $5,475; after the first-time buyer rebate, you pay approximately $1,475.
Legal Fees and Disbursements
$1,500 – $2,500
Your real estate lawyer charges a fee for reviewing your Agreement of Purchase and Sale, handling title transfer, registering your mortgage, and managing all closing funds. Disbursements include the cost of title searches, registration fees, and other administrative items. Budget $1,500 to $2,500 in total.
Title Insurance
$300 – $500
A one-time premium that protects you and your lender against issues with the title to the property — things like fraud, encroachments, or errors in prior title searches. Almost always required by your mortgage lender, and worth having regardless.
Home Inspection Fee
$400 – $700
Paid directly to your licensed home inspector before or at the time of the inspection. For rural properties with well and septic systems, you may need a separate water test ($150 to $300) and septic inspection, which I always recommend in Renfrew County. Military buyers on IRP may be able to claim this as a reimbursable expense.
Mortgage Default Insurance (CMHC)
If < 20% down
If your down payment is less than 20%, you are required to pay for mortgage default insurance through CMHC, Sagen, or Canada Guaranty. The premium ranges from 2.8% to 4% of the mortgage amount and is typically added to your mortgage balance rather than paid at closing. Your lender calculates this for you at pre-approval.
Home Insurance
Required before closing
Your lender will require proof of home insurance before they advance the mortgage funds. Get quotes from multiple insurers in advance. In the Ottawa Valley, rural properties, older homes, and properties with oil heat may require specialized coverage — plan for this early.
Sample Closing Cost Estimate: $420,000 Home in Petawawa
Note: This is a sample estimate for illustration purposes. Actual costs vary based on purchase price, property type, insurance provider, and individual circumstances. I provide a personalized estimate at your buyer consultation.
No Surprises on Closing Day
I walk every buyer through a personalized closing cost estimate at our first meeting. You will know exactly what to expect — no last-minute surprises, no panic, no shortfalls.
Want a Full Cost Breakdown Before You Buy?
Kayla will walk you through every cost associated with your purchase so you go into closing day fully prepared.