The purchase price is only part of what a buyer pays to complete a home purchase in Ontario. A range of closing costs sits on top, and buyers who budget only for the price and the down payment are often caught short. Knowing the main categories in advance lets you plan properly.
Land Transfer Tax
Ontario charges Land Transfer Tax (LTT) on most purchases of real property, calculated on a sliding scale that rises with the purchase price. Buyers of property in the City of Toronto pay a second, municipal land transfer tax on top of the provincial one, which can substantially increase the cost within the city. This is frequently one of the largest closing costs a buyer faces.
First-time home buyers may qualify for a rebate that reduces or eliminates the LTT up to a set limit. Eligibility rules apply, and the rebate amounts are set by government and can change, so verify the current figures and criteria.
Non-Resident Speculation Tax (NRST)
Buyers who are foreign nationals, foreign corporations, or taxable trustees may owe the Non-Resident Speculation Tax on residential purchases. Over time this tax has been increased and expanded to apply across the whole province rather than only certain regions. Because the rate and the rules around exemptions and rebates have changed more than once, anyone potentially affected should confirm the current rate and whether any exemption applies before closing.
Title insurance
Title insurance is a one-time premium that buys a policy protecting against certain risks — hidden title defects, some kinds of fraud, survey or boundary problems, and certain issues that a search might not reveal. It does not replace a lawyer's work, but it covers particular risks that remain after closing, and lenders often require it.
Other costs to expect
- Legal fees and disbursements for your lawyer's work.
- Adjustments — reimbursing the seller for prepaid property taxes, utilities, or condo fees for the period after closing.
- Registration costs and, where applicable, mortgage-related charges.
- Moving costs and any immediate repairs.
Takeaway: Budget for closing costs as a distinct line beyond the purchase price, and confirm current land-transfer-tax, rebate, and NRST figures before you close, since these change.
This article is general information for educational purposes only and is not legal advice. For advice on your situation, book a consultation.