Ontario & Toronto Closing Cost Guide
Closing costs in Ontario typically average between 1.5% to 4% of the property's overall purchase price. Below is a breakdown of estimated out-of-pocket costs on closing day.
1. Land Transfer Tax Guidelines
Ontario charges a provincial tax, while the City of Toronto charges an additional municipal tax. First-time buyers receive rebates.
| Purchase Price | Outside Toronto (Durham, etc.) | Inside City of Toronto |
|---|
| $500,000 | $2,475 (First-Time) | $2,475 (First-Time) |
| $750,000 | $7,475 ($11,475 Regular) | $14,475 ($22,950 Regular) |
| $1,000,000 | $12,475 ($16,475 Regular) | $24,475 ($32,950 Regular) |
2. Standard Local Closing Fees
These fixed administrative fees are standard across the Greater Toronto and Durham real estate markets:
- Legal Fees & Title Registration: $1,500 – $2,000 (Covers your real estate lawyer, title transfer, and processing fees).
- Title Insurance Policy: $300 – $900 (Protects your structural and property ownership rights).
- Home Inspection: $400 – $600 (Highly recommended to check property conditions before closing).
- 8% PST on Mortgage Insurance: $1,000 – $2,000 (If putting down less than 20%, Ontario PST on CMHC premiums must be paid up front on closing day).
- Property Tax & Utility Adjustments: $500 – $1,000 (Reimburses the seller if they pre-paid taxes past your closing date).
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