Updated September 2026
Your down payment is the big number, but it isn't the only cash you need on closing day. In Ontario, buyers also pay land transfer tax, legal fees and a handful of smaller costs, and some of them can't be added to your mortgage. Here is what to budget for.
Your deposit and down payment
The deposit is paid shortly after your offer is accepted, usually within 24 hours. It is held in trust by the listing brokerage and credited toward your purchase price on closing.
The down payment has federal minimums. You need at least 5% of the first $500,000 of the price and 10% of the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more need at least 20% down. With less than 20% down, you'll need mortgage default insurance (more on that below).
Ontario land transfer tax
Ontario's land transfer tax is paid on closing. For a home with one or two single-family residences, the rates 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 million
2.5% on the portion over $2 million
On an $800,000 home, that works out to $12,475.
First-time buyers can get a refund of up to $4,000, which means no Ontario land transfer tax on the first $368,000 of the price. To qualify you must never have owned a home anywhere in the world, your spouse can't have owned one while you were together, you must be a Canadian citizen or permanent resident, and you must move in within nine months. Your lawyer can usually claim the refund when the purchase is registered. Details are on Ontario.ca.
Buying in Toronto? There is a second land transfer tax
The City of Toronto charges its own municipal land transfer tax on top of Ontario's. The rates match Ontario's up to $3 million, and since April 1, 2026 they climb in steps above that, from 4.40% on the portion between $3 million and $4 million to 8.60% on the portion over $20 million. First-time buyers can get a rebate of up to $4,475.
Buying in York Region, Simcoe County or Durham? Toronto is the only municipality in Ontario with its own land transfer tax, so you pay only the provincial tax.
Mortgage insurance, and the tax you pay in cash
If your down payment is under 20%, your lender adds a mortgage default insurance premium to your mortgage. CMHC's premiums run from 2.80% of the loan with 15% down to 4.00% with 5% down.
The catch in Ontario is provincial sales tax. The 8% PST on the premium can't be added to your mortgage, so you pay it in cash on closing. On an $800,000 home with the minimum $55,000 down, the premium is $29,800 and the PST is $2,384.
Legal fees and title insurance
Your real estate lawyer handles the title search, your mortgage documents, registration and the money on closing day. Ask for a written quote that includes the fee, disbursements (searches and registration costs) and HST. Title insurance is usually arranged through your lawyer as a one-time premium.
Adjustments
A few days before closing, your lawyer sends a statement of adjustments. It credits the seller for costs they have prepaid for time when you will own the home, most often property taxes, and condo fees if you are buying a condo. These are added to your cash to close.
Other costs to plan for
A home inspection, if you do one
An appraisal, if your lender asks you to pay for it
A condo status certificate, which can cost no more than $100 including taxes
Home insurance, which your lender will want in place before closing
Moving, utility set-up and any immediate repairs
Buying a new build? Different rules apply
HST works differently on newly built homes, and there are currently federal and Ontario HST rebates for eligible buyers of new homes. Builder agreements can also include extra closing adjustments. Have your lawyer review a builder's agreement before you sign it.
A worked example
Here is the cash a first-time buyer would need for an $800,000 resale home in York Region with the minimum down payment:
Down payment: $55,000
Ontario land transfer tax: $12,475, less the $4,000 refund, for $8,475
PST on mortgage insurance: $2,384
Subtotal: $65,859, before legal fees, title insurance, adjustments, the inspection and moving
The same home in the City of Toronto would add $12,475 of municipal land transfer tax, less the $4,475 first-time buyer rebate, for another $8,000.
Talk to us
Before you make an offer, we can walk you through the numbers for a specific home. Call us at (905) 830-9111, or browse our community guides to compare towns.
