The quick answer
Closing costs are the one-time amounts due by the day your purchase completes. The Financial Consumer Agency of Canada suggests preparing for 1.5% to 4% of the price. In Toronto the two land transfer taxes are the biggest item: $23,750 at the TRREB August 2026 City of Toronto median of $770,000. Legal fees, title insurance, tax adjustments and any sales tax on mortgage default insurance come on top.
The short answer
Closing costs are the one-time amounts a buyer pays on top of the down payment, most of them on or just before closing day. The Financial Consumer Agency of Canada suggests being prepared to spend between 1.5% and 4% of the purchase price on them.
Buying in Toronto pushes that figure up because the City of Toronto charges its own land transfer tax on top of Ontario’s. At the August 2026 TRREB median for all home types in the City of Toronto, $770,000, the two taxes total $23,750. That is roughly 3.1% of the price before a single legal fee is counted.
This guide walks through each closing cost in the order most buyers meet them, flags the City of Toronto items and shows which figures you can calculate and which need a quote.
Toronto closing costs at a glance
| Cost | Set by | When it is paid | Can you calculate it |
|---|---|---|---|
| Ontario land transfer tax | Province of Ontario | On registration | Yes, published rates |
| Municipal Land Transfer Tax | City of Toronto | On registration | Yes, published rates |
| Legal fees and disbursements | Your lawyer | On completion of the sale | No, get quotes |
| Title insurance | Title insurer | At purchase | No, get a quote |
| Sales tax on mortgage default insurance | Province of Ontario | In cash, not added to the loan | Your lender states it |
| Property tax and utility adjustments | What the seller prepaid | On closing | Your lawyer calculates it |
| Home inspection | Inspector | Before or during a condition period | No, get quotes |
| Appraisal | Lender | During financing | Ask your lender |
| Home insurance | Insurer | In place on closing day | No, get quotes |
| Moving and setup | Movers and utilities | Around closing | No, get quotes |
CMHC notes that the deposit you pay with your offer can form part of the down payment, so it is not a closing cost.
Two land transfer taxes
Every purchase in the City of Toronto carries both the provincial land transfer tax and the City’s Municipal Land Transfer Tax (MLTT). Under $2,000,000 the rate bands are identical: 0.5% on the first $55,000, 1.0% up to $250,000, 1.5% up to $400,000 and 2.0% up to $2,000,000. From April 1, 2026, the City applies higher graduated rates to the portion of a price over $3,000,000 for homes with one or two single family residences.
Here is what the two taxes add up to at the August 2026 City of Toronto medians:
| Home type (TRREB, City of Toronto, August 2026) | Median price | Both taxes, no rebate | Both taxes, first-time buyer |
|---|---|---|---|
| Condo apartment | $550,000 | $14,950 | $6,475 |
| All home types | $770,000 | $23,750 | $15,275 |
| Semi-detached | $981,000 | $32,190 | $23,715 |
| Detached | $1,170,000 | $39,750 | $31,275 |
The first-time buyer column assumes the buyer qualifies for Ontario’s refund of up to $4,000 and the City’s rebate of up to $4,475. The City also lists an MLTT administration fee of $102.56 plus HST for each MLTT transaction.
Our full guide to land transfer tax in Toronto covers the rates above $3,000,000, rebate eligibility and the non-resident taxes. To try your own price, use the Toronto land transfer tax calculator.
Legal fees and title insurance
Your real estate lawyer registers the transfer on closing. Registration is the moment both land transfer taxes become payable, so the taxes form part of the closing funds you give your lawyer. CMHC notes that legal fees are paid when the sale is completed.
Fees vary by firm and by transaction. Ask two or three lawyers for a written quote that separates the fee, the disbursements (costs the lawyer pays on your behalf, such as searches and registration) and HST.
Title insurance covers losses caused by problems with the ownership of the property. CMHC notes that your lender or lawyer may suggest it. Ask your lawyer what a policy would cost and what it covers for your purchase.
Mortgage default insurance and the cash tax
If your lender requires mortgage default insurance, CMHC charges a premium calculated as a percentage of the loan. The sales tax on that premium is the part buyers tend to miss. CMHC says premiums in Ontario are subject to provincial sales tax and that the tax cannot be added to the loan amount.
Selected CMHC premiums on the total loan:
| Loan to value | Premium |
|---|---|
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
As an illustration only, a buyer paying $770,000 with 10% down has a loan of $693,000, which sits in the 85.01% to 90% band. The premium is 3.10% of the loan, which is $21,483. The provincial sales tax on that premium cannot be added to the loan, so it has to come from your cash. Your lender will state the exact tax for your file.
If you are building a down payment, our first time home buyer guide for Toronto explains the planning steps.
Property tax adjustments and City of Toronto checks
The property tax adjustment
Toronto sends two property tax bills a year. Interim bills are mailed in January and final bills in May. In 2026 the regular instalments fell on March 2, April 1, May 1, July 2, August 4 and September 1. If the seller has paid tax for days after your closing date, the statement of adjustments credits the seller and you reimburse them on closing. CMHC describes adjustments as a way to reimburse the seller for amounts already paid, such as property tax.
The size of the adjustment depends on the closing date and what has been paid, so ask your lawyer for the figure early. Our explainer on Toronto property tax covers the 2026 rate and payment plans.
Tax certificate and ownership change
The City lists a tax certificate fee of $90.33 and an ownership change fee of $51.61, effective January 1, 2026. Your lawyer can tell you which of these apply to your purchase.
The Vacant Home Tax declaration
This is a Toronto item that buyers often do not hear about. Every residential owner in Toronto must declare each year whether the home was occupied. If no declaration is received by the April 30 deadline, the City assumes the property was vacant. The City says the Vacant Home Tax forms a lien on the property and the purchaser will be held responsible for payment when no declaration was made.
The City asks sellers to give buyers a copy of the completed and filed declaration. Ask your lawyer to confirm it before closing, particularly when the seller is an estate or the home has been empty.
Inspection, appraisal, insurance and moving
- Home inspection. CMHC describes it as a report on the condition of the home. Fees vary, so compare quotes before you need one.
- Appraisal. CMHC says your bank or credit union may require one at your expense. Ask your lender at the application stage.
- Home insurance. CMHC says property insurance must be in place on the day you close. Your lender and lawyer will ask for proof.
- Moving expenses. CMHC lists moving as one of the other costs to plan for. There is no standard price, so get quotes early.
Buying a condo brings its own document review. Our guide to the condo status certificate in Toronto explains what to read before you firm up.
HST and new construction
The Canada Revenue Agency lists most sales of previously occupied housing as exempt from GST/HST. Newly constructed or substantially renovated housing is taxable. Buyers of a new home or pre-construction condo should have a lawyer review the builder’s agreement for HST terms and closing adjustments before signing. Our new construction in Toronto guide explains how we approach that process.
An illustrative budget at the Toronto median
The table below is an example only. It uses the August 2026 City of Toronto median of $770,000 and a buyer who is not a first-time purchaser. Only the land transfer tax lines are calculated. The other lines are items to price out.
| Item | Amount |
|---|---|
| Ontario land transfer tax | $11,875 |
| City of Toronto MLTT | $11,875 |
| MLTT administration fee | $102.56 plus HST |
| Legal fees and disbursements | Get quotes |
| Title insurance | Get a quote |
| Property tax adjustment | Depends on closing date |
| Inspection, insurance and moving | Get quotes |
| FCAC guide range at 1.5% to 4% | $11,550 to $30,800 |
Before you make an offer
- Calculate both land transfer taxes at your target price and check each rebate condition.
- Get written quotes from real estate lawyers that separate fees, disbursements and HST.
- Ask your mortgage professional whether you need default insurance and what the sales tax will be.
- Ask the seller’s side for the current property tax figure and the latest Vacant Home Tax declaration.
- Price out inspection, insurance and moving before you choose a closing date.
- Confirm your own tax and legal position with a lawyer or accountant, since this guide explains the rules and is not personal advice.
Our buyer page explains how we build these costs into a Toronto search from the start. If you want to run the numbers on a specific home, contact us.
Common questions
How much are closing costs in Toronto?
The Financial Consumer Agency of Canada says to be prepared to spend between 1.5% and 4% of the purchase price. In Toronto the provincial and municipal land transfer taxes alone came to about 3.1% of the August 2026 median price of $770,000, so many buyers should plan toward the top of that range.
Do you pay two land transfer taxes in Toronto?
Yes. A buyer in the City of Toronto pays Ontario's land transfer tax and the City's Municipal Land Transfer Tax. Both are due when the transfer is registered on closing.
Can the sales tax on CMHC insurance be added to my mortgage?
No. CMHC says premiums in Ontario are subject to provincial sales tax and that the tax cannot be added to the loan amount. It has to be paid separately rather than financed.
What is the Vacant Home Tax risk when buying a Toronto home?
The City says the Vacant Home Tax forms a lien on the property and a purchaser is held responsible if no occupancy declaration was made. Sellers should give buyers a copy of the filed declaration, so ask your lawyer to confirm it.
Do I pay HST on a resale home in Toronto?
Generally no. The Canada Revenue Agency lists most sales of previously occupied residential housing as exempt from GST/HST, while newly constructed or substantially renovated housing is taxable.
Keep exploring
- First-Time Buyers Two land transfer taxes, two rebates and a budget that holds up at closing.
- Upsizing Selling and buying in one season, with a gap between the closings to plan for.
- Relocation Picking one area out of a very large city, often from far away and on a timeline.
Sources
- Financial Consumer Agency of Canada, Buying a home
- City of Toronto, Municipal Land Transfer Tax rates and fees
- Ontario.ca, Calculating land transfer tax
- CMHC, Mortgage loan insurance cost
- CMHC, How much will my home really cost
- City of Toronto, Property tax rates and fees
- City of Toronto, Vacant Home Tax
- Canada Revenue Agency, GST/HST and home construction
- TRREB Market Watch, August 2026
Figures and rules were checked against these sources on the date this post was published or last updated.
Not advice. This post is general information only. It is not legal, tax, mortgage or investment advice. Rules and figures change, so confirm the details for your own situation with a qualified professional before acting.
Market data. Any prices quoted are general information for the period stated. They are not an appraisal or an opinion of value for any specific property.