Ontario Closing Costs Calculator

Calculate closing costs for buying a home in Ontario. Includes provincial and Toronto municipal land transfer tax, first-time buyer rebates up to $8,475, and legal fees.

Ontario has some of the highest closing costs in Canada, primarily due to the provincial land transfer tax (LTT). The Ontario LTT uses tiered rates from 0.5% on the first $55,000 up to 2.5% on amounts above $2,000,000. Toronto buyers face an additional municipal land transfer tax at roughly matching rates, effectively doubling the cost. On a $700,000 purchase in Toronto, combined land transfer taxes total approximately $22,000.

First-time home buyers in Ontario can claim significant rebates that dramatically reduce closing costs. The provincial LTT rebate covers up to $4,000, and Toronto’s municipal LTT rebate provides an additional $4,475 — a combined maximum savings of $8,475. These rebates can make a meaningful difference in affordability, particularly for entry-level purchases under $500,000 where they offset a large portion of the total land transfer tax.

Ontario Land Transfer Tax Rates

Ontario’s land transfer tax is calculated on a tiered basis: 0.5% on the first $55,000, 1.0% on $55,001–$250,000, 1.5% on $250,001–$400,000, 2.0% on $400,001–$2,000,000, and 2.5% on amounts above $2,000,000. For a $500,000 home, the provincial LTT is approximately $6,475. For a $700,000 home, it’s roughly $10,475.

Toronto’s municipal land transfer tax uses a similar tiered structure with rates from 0.5% to 2.5%. The combined effect in Toronto roughly doubles the land transfer tax compared to other Ontario municipalities. This double tax is one of the most significant factors making Toronto one of the most expensive cities in Canada to purchase property.

First-Time Buyer Rebates in Ontario

Ontario’s first-time buyer LTT rebate covers up to $4,000 of the provincial land transfer tax, fully offsetting the tax on homes up to approximately $368,000. For homes above that price, the rebate provides partial relief. Toronto adds its own first-time buyer rebate of up to $4,475, covering the municipal LTT on homes up to approximately $400,000.

To qualify, you must be a Canadian citizen or permanent resident, at least 18 years old, and must not have previously owned a home (or an interest in a home) anywhere in the world. If purchasing with a partner who has owned before, only the first-time buyer’s share of the rebate is available. The rebate is claimed at the time of closing through your lawyer.

Key Facts

  • Ontario’s provincial LTT uses tiered rates from 0.5% to 2.5%, with a $6,475 tax on a $500,000 purchase.
  • Toronto’s municipal LTT roughly doubles the land transfer tax — combined LTT on a $700,000 Toronto home is approximately $22,000.
  • First-time buyers can claim up to $4,000 provincial + $4,475 Toronto municipal rebates = $8,475 total savings.
  • Legal fees in Ontario typically range from $1,200 to $2,500 plus disbursements for a standard residential purchase.
  • Title insurance ($300–$500) is required by most lenders and protects against title defects and fraud.

FAQ

How much are closing costs on a $500,000 home in Ontario?

For a $500,000 home outside Toronto, expect approximately $6,475 in provincial LTT, $1,500–$2,500 in legal fees, $300–$500 for title insurance, and $300–$600 for a home inspection — totaling roughly $9,000–$10,000. In Toronto, add the municipal LTT of approximately $5,725 (before any first-time buyer rebate), bringing the total to roughly $14,000–$16,000. First-time buyers can reduce this by up to $8,475 with available rebates.

Do first-time buyers in Ontario get a land transfer tax rebate?

Yes. Ontario provides a provincial LTT rebate of up to $4,000 for qualifying first-time home buyers. If buying in Toronto, an additional municipal LTT rebate of up to $4,475 is available. Combined, first-time buyers can save up to $8,475. You must not have previously owned a home anywhere in the world to qualify. The rebate is applied at closing through your lawyer.

Does Toronto really have a double land transfer tax?

Yes. Toronto is one of the only municipalities in Canada with its own land transfer tax in addition to the provincial one. Both taxes apply to every purchase in Toronto. The municipal LTT uses a tiered structure similar to the provincial tax, effectively doubling the total land transfer tax cost. This is a significant factor in Toronto’s high closing costs compared to other Ontario cities.

Can I include closing costs in my mortgage in Ontario?

Generally, no. Closing costs — including land transfer tax, legal fees, and title insurance — must be paid from your own funds at closing. The exception is CMHC mortgage insurance premiums, which can be added to the mortgage. Some lenders offer cash-back mortgages that help cover closing costs, but these typically come with higher interest rates. Budget for closing costs separately from your down payment.

Updated March 2026. Information on this page is provided for educational purposes only. Tax rules, rates, and government programs may change — verify details with the CRA or a qualified financial advisor.