Closing Costs Explained: The Complete Ontario First-Time Buyer Checklist (2026)

From land transfer tax to legal fees — every closing cost you need to budget for when buying your first home in Ontario, with exact dollar amounts.

# Closing Costs Explained: The Complete Ontario First-Time Buyer Checklist (2026) Many first-time buyers focus on the down payment and forget about closing costs — typically **1.5% to 4%** of the purchase price. On a $500,000 home, that's an extra **$7,500 to $20,000**. ## The Complete Checklist ### 1. Land Transfer Tax (LTT) Usually the **largest closing cost** for Ontario buyers. | Purchase Price | Ontario LTT | FTHB Refund | Net LTT | | --- | --- | --- | --- | | $400,000 | $4,475 | −$4,000 | **$475** | | $500,000 | $6,475 | −$4,000 | **$2,475** | | $600,000 | $8,475 | −$4,000 | **$4,475** | | $700,000 | $10,475 | −$4,000 | **$6,475** | | $800,000 | $12,475 | −$4,000 | **$8,475** | ### 2. Legal Fees & Disbursements - Legal fees: $1,500–$2,500 - Disbursements: $300–$500 - **Total: $1,800–$3,000** ### 3.

Title Insurance - One-time cost: **$300–$600** - Protects against title defects, fraud, survey issues ### 4. Home Inspection - **$400–$600** for a standard inspection - Additional $200–$400 for specialized tests (radon, mold) ### 5. CMHC Insurance Premium Required if your down payment is less than 20%: | Down Payment | Premium Rate | On $500K Home | | --- | --- | --- | | 5% | 4.00% | $19,000 | | 10% | 3.10% | $13,950 | | 15% | 2.80% | $11,900 | ### 6. Property Tax & Utility Adjustments - Prorated from closing date: **$500–$2,000** ### 7.

Moving Costs - Professional movers: **$1,000–$3,000** ## Total Closing Cost Summary | Home Price | Minimum Estimate | Maximum Estimate | | --- | --- | --- | | $400,000 | ~$5,000 | ~$10,000 | | $500,000 | ~$7,500 | ~$15,000 | | $700,000 | ~$12,000 | ~$22,000 | | $1,000,000 | ~$18,000 | ~$32,000 | ## Key Takeaway Budget **1.5% to 4%** of your purchase price for closing costs on top of your down payment. Your real estate lawyer will provide a detailed statement of adjustments before closing day — no surprises.

Published by Circle Real Estate Brokerage — Toronto & GTA pre-construction and resale experts.