Ontario Buyer Guide
How Much Does It Cost to Buy a House in Ontario?
The purchase price is only part of the cost. Ontario buyers also need cash for the down payment, land transfer tax, legal fees, inspections, adjustments, moving expenses and, in some cases, mortgage default insurance.
Interactive Tool Enter the purchase price, select the location and indicate whether the purchasers are eligible first-time home buyers. Estimate only. The calculator is intended for qualifying residential properties containing one or two single-family residences. It does not calculate non-resident speculation taxes, special exemptions, partial interests or transaction-specific adjustments. Confirm the final amount and rebate eligibility with your lawyer.
Ontario Land Transfer Tax Calculator
The Main Costs of Buying a House
| Cost | What It Covers | Typical Amount |
|---|---|---|
| Down payment | The portion of the purchase price paid from your own funds. | Varies by price and financing |
| Ontario land transfer tax | Provincial tax payable when title transfers. | Based on purchase price |
| Toronto municipal land transfer tax | An additional municipal tax for properties inside Toronto. | Based on purchase price |
| Legal fees and disbursements | Lawyer's work, searches, registration and transaction expenses. | Often about $1,500 to $3,000+ |
| Title insurance | Protection against certain title defects, fraud and related risks. | Usually included through the lawyer |
| Home inspection | A visual assessment of the home's accessible systems and components. | Often about $400 to $800+ |
| Appraisal | A lender-ordered opinion of value where required. | May be several hundred dollars |
| Closing adjustments | Reimbursement to the seller for prepaid taxes, utilities, condo fees or fuel. | Varies |
| Moving and setup costs | Movers, utility connections, locks, furniture and immediate repairs. | Varies widely |
Planning a purchase?
I can help you estimate the cash needed for your price range before you begin making offers.
1. Your Down Payment
The down payment is usually the largest amount of cash required. The minimum depends on the purchase price, the type of property and the mortgage program. A larger down payment reduces the mortgage amount and may eliminate the need for mortgage default insurance.
Your deposit is normally credited toward the down payment on closing. It is not an extra cost, but you must have it available when the offer requires it, often before the mortgage funds are advanced.
2. Ontario Land Transfer Tax
Ontario land transfer tax is calculated using graduated rates. For residential properties containing one or two single-family residences, the current provincial brackets are:
- 0.5% on the first $55,000
- 1.0% on the portion from $55,000 to $250,000
- 1.5% on the portion from $250,000 to $400,000
- 2.0% on the portion from $400,000 to $2,000,000
- 2.5% on the portion above $2,000,000
Example outside Toronto
On a $1,000,000 purchase in Vaughan, Markham, Richmond Hill or another Ontario municipality without a municipal land transfer tax, the Ontario land transfer tax is approximately $16,475, before any available first-time buyer refund.
3. Toronto Municipal Land Transfer Tax
When you buy inside the City of Toronto, you pay municipal land transfer tax in addition to Ontario land transfer tax. For a $1,000,000 Toronto purchase, the provincial and municipal taxes are approximately $32,950 combined, before any qualifying first-time buyer refunds.
Toronto introduced higher municipal rates for portions of qualifying high-value residential purchases above $3 million effective April 1, 2026. Buyers in that price range should obtain a current calculation from their lawyer.
4. First-Time Buyer Land Transfer Tax Refunds
Eligible first-time home buyers may qualify for an Ontario land transfer tax refund of up to $4,000. Toronto also offers a separate municipal first-time buyer rebate, subject to its eligibility requirements.
Do not assume you qualify based only on never having owned property in Canada. Spousal ownership, ownership outside Canada, residency and occupancy requirements can affect eligibility. Your lawyer should confirm the refund before closing.
5. Mortgage Default Insurance
When the down payment is less than 20%, mortgage default insurance is generally required. The premium is calculated as a percentage of the mortgage and can usually be added to the mortgage balance rather than paid entirely in cash at closing.
Even when the premium is added to the mortgage, Ontario retail sales tax on the premium may need to be paid in cash on closing. Your lender or mortgage broker should confirm the exact treatment.
6. Legal Fees, Title Insurance and Disbursements
Your real estate lawyer reviews the agreement, completes title and tax searches, arranges mortgage and transfer documents, handles closing funds and registers the property. The bill normally includes professional fees, HST and disbursements.
Ask for a written quote and clarify whether it includes title insurance, mortgage registration, software charges, bank fees and other disbursements.
7. Home Inspection and Specialist Reports
A general inspection often costs several hundred dollars. Older, renovated or unusual properties may also justify specialist reviews by an electrician, plumber, roofer, structural engineer, HVAC contractor or waterproofing professional.
Those extra reports increase your upfront costs, but they may reduce the risk of buying without understanding a significant defect.
8. Closing Adjustments
The seller may have prepaid expenses that benefit you after closing. Your lawyer adjusts these amounts on the statement of adjustments. Common examples include:
- Property taxes
- Condominium common expenses
- Prepaid utilities or fuel
- Rental items and other property-specific charges
These amounts are not necessarily large, but they can make the final cash requirement higher than your initial estimate.
9. New Construction Closing Costs
Buying from a builder can involve additional adjustments that are not typical on a resale purchase. Depending on the agreement, these may include development-related charges, utility installation charges, grading deposits, Tarion fees, meter charges, legal administration fees and HST-related amounts.
Builder agreements should be reviewed by a lawyer during any available review period. Do not rely only on the base purchase price when estimating the final cost.
10. Costs After You Get the Keys
Moving
Movers, truck rental, storage, packing supplies and time off work.
Immediate repairs
Locks, paint, cleaning, window coverings and items identified during inspection.
Furniture and appliances
Items that are missing, excluded from the sale or unsuitable for the new space.
Ongoing ownership
Mortgage payments, taxes, insurance, utilities, condo fees and maintenance.
Daniel's Tip
Do not use every available dollar for the down payment and closing. Keep a reserve for adjustments, moving, repairs and the first months of ownership.
Example: Buying a $1,000,000 Home
| Purchase price | $1,000,000 |
| 20% down payment | $200,000 |
| Ontario land transfer tax | Approximately $16,475 |
| Additional Toronto municipal tax | Approximately $16,475 if the home is in Toronto |
| Legal, title and disbursements | Obtain a lawyer's quote |
| Inspection, appraisal and adjustments | Property-specific |
This example is for planning only. The actual amount depends on the property, municipality, financing, adjustments, legal quote and available rebates.
Frequently Asked Questions
How much should I save beyond my down payment?
There is no universal percentage. Estimate land transfer tax first, then add legal costs, inspection, adjustments, moving expenses and a reserve. Toronto buyers need to account for both provincial and municipal land transfer tax.
Does the deposit count toward the down payment?
Yes. The deposit is credited toward the purchase price and normally forms part of the down payment, but it must be delivered according to the offer terms.
Do buyers pay real estate commission?
In many resale transactions, the seller pays the cooperating brokerage compensation offered through the listing. However, representation agreements and specific listings can affect what a buyer may owe. Review your agreement with your agent before making offers.
Are closing costs different for a condo?
The main categories are similar, but condo buyers may also pay for a status certificate review, condo fee adjustments, move deposits and building-related charges.
Are new-build closing costs higher?
They can be. Builder agreements often contain additional adjustments and HST provisions that require careful legal review.
Ready to Plan Your Home Purchase?
I can help you understand the likely costs for your price range, compare Toronto with surrounding GTA municipalities and structure an offer that fits your financing and timeline.
Related Guides
- Should You Get Your Own Home Inspection?
- Should You Sell Before Buying a Home?
- Choosing the Right Closing Date
- How Much Does It Cost to Sell a House in Ontario?
This guide is for general informational purposes only and is not legal, tax, mortgage or financial advice. Costs, taxes, rebates and lending requirements may change. Buyers should obtain current calculations and professional advice from their lawyer, lender, mortgage professional and other appropriate advisers.