How much cash
to close in Ontario?
What you need in the bank on closing day
Every cost that is actually due on the day, added up in one place, on the price you are considering.
A buyer in Ontario needs the down payment plus closing costs in cash on closing day. In Toronto that means land transfer tax twice, once to the province and once to the City, plus sales tax on the mortgage insurance premium, legal fees, title insurance and adjustments. On a $1,000,000 home with ten per cent down, that is roughly $138,000.
What you are actually paying for
Six of these are fixed by statute and cannot be negotiated. The rest are estimates that move by a few hundred dollars either way, and your lawyer sets the final adjustments a few days before closing.
Ontario land transfer tax
Every buyer in Ontario pays it and it is due in cash on closing. The rate is marginal, so each band applies only to the portion of the price inside it.
| Portion of the price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| Above $400,000 | 2.0% |
| Above $2,000,000, on a house or condominium | 2.5% |
Source: Ontario Ministry of Finance,Calculating land transfer tax. Read 21 August 2026.
Toronto municipal land transfer tax
Inside the City of Toronto there is a second land transfer tax at the municipal level, on top of the provincial one. The rates on homes of one or two units changed on 1 April 2026.
| Portion of the price | House or condominium | Three or more units, or commercial |
|---|---|---|
| Up to $55,000 | 0.5% | 0.5% |
| $55,000.01 to $250,000 | 1.0% | 1.0% |
| $250,000.01 to $400,000 | 1.5% | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% | 2.0% |
| $2,000,000.01 to $3,000,000 | 2.5% | 2.0% |
| $3,000,000.01 to $4,000,000 | 4.40% | 2.0% |
| $4,000,000.01 to $5,000,000 | 5.45% | 2.0% |
| $5,000,000.01 to $10,000,000 | 6.50% | 2.0% |
| $10,000,000.01 to $20,000,000 | 7.55% | 2.0% |
| Above $20,000,000 | 8.60% | 2.0% |
There is also an administration fee of $102.56 plus HST on every Toronto transaction. Source: City of Toronto,Municipal Land Transfer Tax rates and fees. Read 21 August 2026.
First-time buyer rebates
Ontario refunds up to $4,000, which covers the full provincial tax on a home up to $368,000. Toronto refunds up to $4,475. Both are claimed through your lawyer at closing, so in practice they come off the bill rather than arriving later.
Sales tax on mortgage insurance
With less than twenty per cent down the mortgage has to be insured. The premium itself is added to the loan, but Ontario charges eight per cent retail sales tax on that premium and CMHC states that part cannot be added to the loan. It is cash, on closing day, and most calculators leave it out entirely. On a $900,000 insured mortgage it is about $2,232.
| Loan as a share of the price | Premium |
|---|---|
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
Mortgage insurance is not available at all on a home priced at $1,500,000 or more, which is why the minimum down payment there is twenty per cent. Source: Canada Mortgage and Housing Corporation,Mortgage loan insurance cost. Read 21 August 2026.
Common questions
about closing costs
What is the minimum down payment in Ontario?
Five per cent on a home up to $500,000. Between $500,000 and $1,500,000 it is five per cent of the first $500,000 and ten per cent of the rest. At $1,500,000 and above it is twenty per cent of the whole price, because mortgage loan insurance is not available at that level.
Does the deposit count toward the down payment?
Yes. The deposit paid when the offer was accepted is credited against the down payment on closing, so only the difference is due. It is money already spent, not an extra cost.
How much are closing costs in Ontario?
Outside the down payment and land transfer tax, budget roughly $3,000 to $4,000 on a typical resale purchase: about $2,000 for the lawyer and disbursements, $400 for title insurance, $500 for a home inspection and $100 for a status certificate on a condominium. Property tax and utility adjustments are on top and depend on what the seller prepaid.
Do you pay sales tax on mortgage insurance in Ontario?
Yes. Ontario charges eight per cent retail sales tax on the mortgage insurance premium, and CMHC states that the provincial sales tax cannot be added to the loan. It is cash on closing day. On a $900,000 insured mortgage at ten per cent down it is about $2,232.
Is a condominium taxed differently from a house?
No. The Land Transfer Tax Act defines a single family residence to include a unit under the Condominium Act, so a condominium is taxed on the same schedule as a house, including the 2.5 per cent band above $2,000,000. Only three or more units and commercial property fall onto the other schedule.
What does a buyer who is not a Canadian citizen pay?
Ontario charges a 25 per cent Non-Resident Speculation Tax on residential property anywhere in the province, and since 1 January 2025 Toronto charges a further 10 per cent municipal one inside the city. Both are on top of the two land transfer taxes and both are due in cash on closing.
Can a non-Canadian buy a home in Toronto right now?
Mostly no. A federal ban on the purchase of residential property by non-Canadians runs to 1 January 2027 and covers homes of three or fewer units across every census metropolitan area, which includes the whole GTA. There are exemptions, including work permit holders with at least 183 days remaining on the permit, some students, protected persons, diplomats, and non-Canadians buying jointly with a Canadian spouse or partner. A buyer inside one of those exemptions still pays both speculation taxes.
Can any of the closing costs be added to the mortgage?
The mortgage insurance premium can. The sales tax on it cannot, and neither can land transfer tax, legal fees or the down payment. Everything in the total is money needed in the account on closing day.
Once you know the cash, the other half of the question is what the payments look like. The affordability calculator runs the same lender rules on your income, and the land transfer tax calculator breaks out just the tax. If you are selling something first, trade up or downsize puts both sides on one page.