Understanding Closing Costs in Ontario: What Homebuyers Need to Budget For

When you’re buying a home in Ontario, it’s easy to focus on saving for your down payment. But there’s another big piece of the puzzle: closing costs. These one-time fees can add thousands to your purchase, so let’s break down what you need to know to avoid surprises on closing day.

What Are Closing Costs?

Closing costs are a collection of one-time fees paid at the end of a home purchase, usually amounting to 1.5%–4% of your home’s purchase price. Planning for these costs early will help you move in with confidence—not stress.

Key Costs to Expect

• Land Transfer Tax: One of the biggest expenses. Read the full post here for rates and rebate info.
• Legal fees: Your lawyer will handle all the paperwork, title transfer, and disbursements. Budget $1,000–$2,500, depending on complexity.
• Title insurance: Protects you against title fraud or property ownership issues. Usually $250–$500.
• Home inspection: Highly recommended to uncover hidden issues. Expect $400–$700.
• Appraisal (if needed): Sometimes required by your lender. Fees are typically $350–$500.
• Adjustments: You may need to reimburse the seller for prepaid property taxes or utilities.
• Moving costs: Don’t forget to budget for movers, truck rental, or supplies—costs vary depending on distance and services.

When They’re Paid

Most closing costs are due on or just before your closing day and are handled by your lawyer as part of the final transaction. It’s important to have these funds ready in advance.

Tips to Budget

• Start saving for closing costs early—don’t wait until you’ve found your dream home.
• Ask your real estate agent or lawyer for a personalized estimate based on your situation.
• Use a closing cost calculator to get a ballpark figure as you plan.