Closing costs

The cash you need on closing day, in five quick questions.

Know your number before you offer.

We fill in this breakdown for the homes you're actually looking at.

Book a free Gameplan Session

Covered front porch with a black front door, blue-grey siding and white wicker chairs (stock photo)

Get my numbers checked

Ishwar looks over your numbers and calls you back.

How land transfer tax is calculated

Charged in brackets on the price. Inside Toronto you pay it twice: Ontario's and the city's.

Worked exampleA $1,000,000 home in the City of Toronto, bought by a first-time buyer.

$16,475Ontario land transfer tax
plus $16,475Toronto's own land transfer tax
minus $8,475first-time buyer rebates (Ontario + Toronto)
plus $115.89Toronto admin fee, with HST
equals $24,590.89land transfer tax you'd pay

Paid through your lawyer on closing day, on top of your down payment and the other closing bills.

Worked exampleThe same buyer, an $800,000 home outside Toronto (e.g. Mississauga).

$12,475Ontario land transfer tax
minus $4,000Ontario first-time buyer refund
equals $8,475land transfer tax you'd pay

Outside Toronto there's no city tax, so only Ontario's applies.

Ontario's rate on each slice of the price

Up to $55K0.5%
$55K to $250K1%
$250K to $400K1.5%
$400K to $2M2%
Over $2M2.5%

Toronto matches these brackets up to $3 million.

The full method and 7 official sources

Ontario's land transfer tax is charged in brackets: 0.5% up to $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2 million and 2.5% above that for a home. Ontario's own example: a $400,000 home pays $275 + $1,950 + $2,250 = $4,475.

Inside the City of Toronto you pay a second, municipal land transfer tax. It matches Ontario's brackets up to $3 million. Since April 1, 2026, higher rates apply above that, from 4.40% to 8.60%. On a $1,000,000 Toronto home, the two taxes come to $32,950.

First-time buyer rebates

First-time buyers get up to $4,000 back from Ontario and up to $4,475 from Toronto. You must never have owned a home anywhere in the world. If you buy with someone who isn't a first-time buyer, Ontario reduces the refund to match your share.

The tax on default insurance

With under 20% down, your mortgage insurance premium is added to the loan. Ontario's 8% sales tax on that premium can't be, so it's due in cash at closing: $2,384 on an $800,000 home with the minimum down payment.

Everything else

Legal fees, title insurance, an inspection and the adjustments on your lawyer's statement vary by firm, home and closing date, so we show them as estimates you can change. The FCAC suggests planning for 1.5% to 4% of the price in closing costs. The full line-by-line list is in our closing costs checklist, and the bracket math in our land transfer tax guide.