Jay Kuang · Flat Fee Realtor

Toronto Closing Costs 2026: The Complete Buyer's Checklist (With Real Numbers)

Beyond your down payment, a Toronto purchase needs 1.5–4% more in cash at closing. Every fee — land transfer tax, legal, inspection — with real 2026 numbers and rebates.

October 8, 2026

Toronto Closing Costs 2026: The Complete Buyer's Checklist (With Real Numbers)

You've saved the down payment. Your pre-approval is in hand. You're ready to write an offer — and then someone mentions "closing costs," and you realize you may be short by $20,000 or more.

Closing costs are the fees, taxes, and adjustments you pay on top of your down payment when you take ownership of a home in Ontario. On a typical Toronto purchase, they run 1.5% to 4% of the purchase price (a rule of thumb widely cited by CMHC and Ontario real estate lawyers), and they must be paid in cash, on closing day — you cannot roll them into your mortgage.

This guide lists every line item a Toronto-area buyer faces in 2026, with real numbers worked from current rates, plus the rebates that can shrink the bill.

1. Land Transfer Tax: Usually the Biggest Line Item

Ontario charges land transfer tax (LTT) on every property purchase. It's calculated on graduated brackets, so you don't pay the top rate on the whole price. For a resale home with one or two single-family residences, the 2026 provincial rates are (per the Ontario Ministry of Finance):

Portion of purchase price Rate First $55,000 0.5% $55,000 – $250,000 1.0% $250,000 – $400,000 1.5% $400,000 – $2,000,000 2.0% Above $2,000,000 2.5%

If the home is inside the City of Toronto, you also pay Toronto's municipal land transfer tax (MLTT) on top — with the same bracket structure. In other words, land transfer tax is effectively doubled in Toronto. (Note: Toronto added higher graduated rates of 4.4%–8.6% for the portion of residential prices above $3 million, effective April 1, 2026 — relevant only at the very top end.)

Buyers in Markham, Richmond Hill, Vaughan, Scarborough (outside the 416), and the rest of the GTA beyond Toronto's city limits pay the provincial tax only — one reason the Markham, Richmond Hill, North York, and Scarborough areas carry meaningfully lower closing costs for the same purchase price.

Worked examples (provincial tax before any rebate)

  • $600,000 home outside Toronto: $275 + $1,950 + $2,250 + $4,000 = $8,475
  • $900,000 home in Toronto: $14,475 provincial + $14,475 municipal = $28,950
  • $1,000,000 home in Toronto: $16,475 + $16,475 = $32,950

First-time buyer rebates

Eligible first-time buyers can claim:

  • Up to $4,000 back on Ontario provincial LTT. On a home priced at $368,000 or less, the provincial tax is wiped out entirely.
  • Up to $4,475 back on Toronto's municipal tax (City of Toronto).
  • Combined maximum relief: $8,475 for a Toronto first-time buyer.

So the $900,000 Toronto example above drops from $28,950 to $20,475 net after both rebates. Your lawyer normally claims the rebate at registration, so the savings are immediate — but tell your lawyer you qualify before closing day. Eligibility requires never having owned a home anywhere in the world, occupying the home within nine months, and being 18+ and a Canadian citizen or permanent resident (sources: ontario.ca, toronto.ca, via 2026 rate references).

2. Legal Fees and Disbursements

Your real estate lawyer does the heavy lifting on closing day: title search, registering the transfer and mortgage, preparing the statement of adjustments, and moving funds. Expect:

  • Legal fees: $1,500 – $2,500, depending on the firm and complexity (many quotes are before HST)
  • Disbursements: title search, courier, registration — often bundled, budget $300 – $500
  • Title registration: Ontario's OnLand registration fee runs about $78 per registered document

All-in, most GTA buyers pay roughly $1,800 – $2,800 + HST for the legal side. Get a written quote before you firm up your offer — it's one of the few closing costs you can actually shop for.

3. Title Insurance: $200 – $400

Most lenders require title insurance, and it's cheap protection: it covers fraud, title defects, survey issues, and certain zoning or encroachment problems. It's a one-time premium, typically $200 – $400, arranged through your lawyer. Some buyers choose an enhanced owner's policy on top.

4. Home Inspection, Appraisal, and Status Certificate

  • Home inspection: $400 – $600, paid before closing (often before removing the inspection condition). In a competitive market where some buyers waive inspections, this is the one cost people cut first — and the one that most often comes back to haunt them.
  • Appraisal: $300 – $500. Your lender may require an independent appraisal to confirm the home's value matches the mortgage amount. Sometimes the lender absorbs this; ask.
  • Condo status certificate: about $100 (the Condominium Act caps this fee). Your lawyer reviews it for liens, special assessments, and the reserve fund — don't skip it on a condo purchase.

5. The Costs Buyers Forget

These smaller items add up, and they all come due in cash around closing:

  • PST on CMHC insurance (8% in Ontario): If your down payment is under 20%, the mortgage default insurance premium itself can be added to your mortgage — but Ontario charges 8% PST on the premium, payable in cash at closing. Example: on a $900,000 purchase with 10% down, the mortgage is $810,000, the premium (3.10% of the mortgage for 85–90% loan-to-value) is $25,110, and the PST alone is $2,009 in cash. Premium rates for 2026: 2.80% (80–85% LTV), 3.10% (85–90%), 4.00% (90–95%).
  • Property tax and utility adjustments: If the seller prepaid property taxes or utilities beyond the closing date, you reimburse their share. Highly variable — ask your lawyer for the estimate on the statement of adjustments.
  • Home insurance: $1,000 – $2,000+ per year. Lenders require proof of coverage before funding, so the first year's premium is effectively a closing cost.
  • Moving costs: $1,500 – $3,000+ for a local GTA move with professionals.
  • Mortgage discharge/registration fees: If you're switching lenders, the old mortgage discharge costs around $200 – $350.
  • HST on new builds: New construction carries 13% HST on the purchase price, partly offset by federal and provincial new-housing rebates, plus Ontario's announced HST relief for first-time buyers of new homes. New builds are a different math problem — budget carefully.

6. The Full Picture: A $900,000 Toronto Example

Put it together for an eligible first-time buyer purchasing a $900,000 resale home in Toronto with 10% down:

Item Amount Provincial LTT ($14,475) minus $4,000 rebate $10,475 Toronto MLTT ($14,475) minus $4,475 rebate $10,000 Legal fees + disbursements + HST ~$2,100 Title insurance ~$300 Home inspection ~$500 Appraisal ~$350 Title registration (2 documents) ~$156 PST on CMHC premium ~$2,009 Home insurance (first year) ~$1,500 Estimated total ~$27,400

That's about 3% of the purchase price — and it has to sit in your account, in cash, on top of your $90,000 down payment. A repeat buyer (no rebates) on the same home would face roughly $35,900.

7. How to Keep Closing Costs Down

  • Buy outside the 416 when it fits your life: identical $900,000 homes cost about $14,475 less in land transfer tax in Markham or Richmond Hill than in Toronto — no municipal tax.
  • Claim every rebate you're eligible for: the $8,475 combined LTT relief, and if applicable, the federal first-time home buyers' tax credit (up to $1,500 in tax savings claimed on your return).
  • Shop your lawyer: legal quotes vary by hundreds of dollars for identical work.
  • Time your insurance and moving quotes early — prices creep up in the spring market.
  • Put your buyer cashback to work: with a flat-fee model, the buyer-side commission you'd otherwise leave on the table comes back to you as cashback after closing — many of our buyers apply it straight to their closing costs. On a $900,000 purchase, that cashback alone can cover a large share of the bill above. (See the real math in our earlier breakdown: Flat Fee Realtor vs Traditional Commission in Toronto.)

FAQ

Can closing costs be added to my mortgage? Generally no. Canadian lenders do not let you finance closing costs into the mortgage. The one exception is the CMHC insurance premium itself — but the 8% Ontario PST on that premium is still cash at closing.

Do I pay land transfer tax twice in Toronto? Effectively yes: a home inside the City of Toronto is subject to both the provincial LTT and the municipal MLTT, collected together at closing. Outside the city, you pay only the provincial tax.

I've owned a home before — do I get any rebates? The LTT rebates are for first-time buyers only. Repeat buyers pay the full graduated tax. Some federal programs use different "first-time" definitions, so check each program's rules rather than assuming.

Are closing costs different for condos vs. houses? Mostly the same, with a few condo extras: the status certificate fee (~$100), potentially higher insurance, and condo fee adjustments for prepaid amounts. Houses tend to have higher home insurance and sometimes survey costs.

When exactly is everything due? Inspection and appraisal are paid before closing (weeks out). Everything else — land transfer tax, legal fees, adjustments, PST on CMHC — settles on closing day via your lawyer's statement of adjustments, funded by certified cheque or bank draft.

Bottom line: Budget 1.5–4% of the purchase price for closing costs, calculate your land transfer tax net of rebates before you write an offer, and treat every quote as negotiable. Buying in the GTA this year? A flat-fee model with buyer cashback won't change your land transfer tax — but it can hand you thousands back after closing to cover it. See how the cashback works →

Sources: Ontario Ministry of Finance (land transfer tax rates and $4,000 first-time refund); City of Toronto (MLTT rates and $4,475 rebate); CMHC (mortgage insurance premium schedule); Condominium Act, Ontario (status certificate fee cap). Rate references cross-checked against 2026 publications from willinglaw.com, greatertorontohomepros.com, wowa.ca, and lendinghub.ca. Confirm your exact tax and rebate eligibility with your real estate lawyer before closing.