FCAC says to budget between 1.5% and 4% of the purchase price for closing costs — but in Toronto the double land transfer tax makes the high end realistic. On an $800,000 home, land transfer tax alone is $24,950, before legal fees, title insurance, inspection, adjustments and, for insured mortgages, Ontario’s 8% tax on the premium.
What are the closing costs when you buy a home in Toronto?
Closing costs are everything you pay in cash on top of the down payment, and in Toronto the list runs: two land transfer taxes, legal fees and disbursements, title insurance, a home inspection, property tax and utility adjustments, and — if your down payment is under 20% — Ontario’s 8% sales tax on your mortgage insurance premium. The Financial Consumer Agency of Canada (FCAC) names inspection, legal fees, property tax adjustments and title insurance among the core components, and says to budget “between 1.5% and 4% of the home’s purchase price.”
The trap: none of this can be rolled into your mortgage. It is cash, due on or before closing day, on top of your down payment. Buyers who budget only the down payment routinely discover a five-figure gap weeks before closing.
How much should I budget in total?
Applying FCAC’s 1.5%–4% guidance to Toronto price points gives you the working range — and in Toronto, because of the municipal land transfer tax, I find the upper half of the range is the honest place to plan:
| Purchase price | 1.5% (FCAC low end) | 4% (FCAC high end) | Of which: combined land transfer tax |
|---|---|---|---|
| $650,000 | $9,750 | $26,000 | $18,950 ($10,475 after max FTB rebates) |
| $800,000 | $12,000 | $32,000 | $24,950 ($16,475 after max FTB rebates) |
| $1,000,000 | $15,000 | $40,000 | $32,950 ($24,475 after max FTB rebates) |
The percentage columns are simple arithmetic on FCAC’s published range; the land transfer tax column is computed from the official provincial and municipal rate brackets. For a non-first-time buyer in Toronto, land transfer tax alone can exceed FCAC’s low-end estimate — the 1.5% floor was not written with Toronto in mind.
Why is land transfer tax the biggest line?
Because Toronto buyers pay it twice — once to Ontario and once to the City — with matching brackets up to $2 million, it dwarfs every other closing cost. On $800,000, that is $12,475 provincial plus $12,475 municipal: $24,950. First-time buyers can recover up to $4,000 from Ontario and up to $4,475 from Toronto, a combined $8,475, subject to eligibility rules including Toronto’s requirement to occupy the home within nine months.
I break down every bracket, the April 1, 2026 luxury-tier changes and the rebate rules in the full Toronto land transfer tax guide.
What do legal fees, title insurance and inspection cost?
These are real costs, but I am deliberately not printing dollar ranges for them — there is no government-published fee schedule, and any number I gave you would be a guess dressed up as data. What FCAC confirms is that they belong in your budget:
- Legal fees and disbursements. A real estate lawyer is effectively mandatory in Ontario to close; their fee plus disbursements (registrations, searches, couriers) varies by firm and transaction. Get a written quote early.
- Title insurance. A one-time premium protecting against title defects, fraud and survey issues. Your lawyer arranges it; the cost scales with the property value.
- Home inspection. Optional but named by FCAC as a standard closing cost; in competitive GTA situations it often happens before offering instead.
- Property tax and utility adjustments. If the seller has prepaid property taxes or utilities past the closing date, you reimburse them for your share on closing. Your lawyer calculates this on the Statement of Adjustments.
What is the 8% tax on mortgage insurance?
If your down payment is under 20%, your mortgage must be insured, and Ontario charges 8% retail sales tax on the insurance premium — payable in cash at closing, because CMHC is explicit that the tax cannot be added to the loan. The premium itself (2.40% to 4.00% of the loan for down payments under 20%, per CMHC’s schedule) is normally capitalized into the mortgage, so it is not a closing cost — but the tax on it is.
Worked example: $800,000 purchase, minimum $55,000 down. The mortgage is $745,000 at roughly 93% loan-to-value, so the premium is 4.00% × $745,000 = $29,800 — and the RST due at closing is 8% × $29,800 = $2,384 in cash.
What can push closing costs beyond the normal range?
Two big ones: buyer status and property type. Foreign nationals face Ontario’s 25% Non-Resident Speculation Tax province-wide (since October 25, 2022), plus Toronto’s 10% municipal NRST (effective January 1, 2025) — $280,000 of extra tax on an $800,000 purchase. On new construction, first-time buyers now have the CRA’s GST rebate of up to $50,000 on new homes up to $1 million (phasing out by $1.5 million) for agreements signed after May 26, 2025.
A worked example: $800,000 in Etobicoke
Here is the closing-cost picture for a first-time buyer purchasing an $800,000 home with the minimum down payment — the numbered items are computed from official rates, the rest are real but unpriced here for the reason above:
| Item | Amount | Basis |
|---|---|---|
| Ontario land transfer tax | $12,475, less $4,000 refund = $8,475 | Provincial brackets + max FTB refund |
| Toronto municipal land transfer tax | $12,475, less $4,475 rebate = $8,000 | Municipal brackets + max FTB rebate |
| RST on mortgage insurance premium | $2,384 | 8% of the $29,800 premium (4% of $745,000 loan) |
| Legal fees, disbursements, title insurance | Quote from your lawyer | FCAC-listed component; no published schedule |
| Home inspection | Quote from your inspector | FCAC-listed component |
| Property tax / utility adjustments | Per Statement of Adjustments | Depends on seller prepayments and closing date |
| Computed items subtotal | $18,859 | Cash, on top of the $55,000 down payment |
So this buyer needs at least $73,859 of cash before the unquoted professional fees — a long way above the down payment alone.
The takeaway
Budget with FCAC’s 1.5%–4% range, but in Toronto plan toward the top of it: the double land transfer tax is the dominant cost, the 8% RST on mortgage insurance is a cash item most first-time buyers have never heard of, and none of it can be mortgaged. Know your full cash-to-close number before you offer, not after.
How I help
For every buyer I work with, I build a cash-to-close sheet before we write an offer: both land transfer taxes with your actual rebate eligibility, the insurance premium and its RST if you are under 20% down, and placeholders for the quotes to collect from your lawyer and inspector. It turns closing day from a surprise into a line item. Ask me for one on any listing.
Get your cash-to-close number before you offer
Send me the listing and your down payment, and I’ll send back the full closing-cost breakdown for that exact property — taxes, rebates and all. No pitch, no obligation.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Reviewed personally and answered within 24 hours. I never share, sell or distribute your information.
Frequently asked questions
How much are closing costs on an $800,000 house in Toronto?
FCAC’s guidance of 1.5% to 4% of the price puts the range at $12,000 to $32,000. The computed items alone — $24,950 of combined land transfer tax (or $16,475 with maximum first-time buyer rebates) plus $2,384 of RST on mortgage insurance at minimum down payment — show why Toronto buyers should plan near the top of that range.
Can closing costs be added to my mortgage?
No. Land transfer tax, legal fees, title insurance, inspection, adjustments and the 8% RST on a mortgage insurance premium are all cash costs at closing. The insurance premium itself can be added to an insured mortgage, but CMHC states the provincial sales tax on it cannot.
Do first-time buyers pay less in closing costs in Toronto?
Yes, meaningfully. Eligible first-time buyers can recover up to $4,000 of Ontario land transfer tax and up to $4,475 of Toronto’s municipal tax — $8,475 combined. Toronto’s rebate requires that you occupy the home as your principal residence within nine months of closing.
What closing costs apply to a condo purchase?
The same list — both land transfer taxes, legal fees, title insurance, adjustments — plus a status certificate review, where your lawyer examines the condo corporation’s finances and reserve fund before you firm up. Monthly maintenance fees are an ongoing cost, not a closing cost, but budget for them from day one.
Sources
- FCAC — Buying a home. The 1.5%–4% closing-cost budgeting range and the component list: inspection, legal fees, property tax adjustments, title insurance. Accessed 13 August 2026.
- Government of Ontario — Calculating land transfer tax. The provincial rate brackets used in the worked examples. Accessed 13 August 2026.
- City of Toronto — MLTT rates and fees. The municipal brackets and the 10% municipal NRST effective 1 January 2025. Accessed 13 August 2026.
- Government of Ontario — LTT refunds for first-time homebuyers. The $4,000 maximum provincial refund. Accessed 13 August 2026.
- City of Toronto — MLTT rebate opportunities. The $4,475 maximum municipal rebate and nine-month occupancy requirement. Accessed 13 August 2026.
- CMHC — mortgage loan insurance cost. The premium schedule and the rule that sales tax on the premium cannot be added to the loan. Accessed 13 August 2026.
- Government of Ontario — Retail sales tax. Ontario’s 8% RST on insurance premiums. Accessed 13 August 2026.
- Government of Ontario — Non-Resident Speculation Tax. The 25% province-wide NRST since 25 October 2022. Accessed 13 August 2026.
- CRA — First-time home buyers’ GST/HST rebate. The new-build GST rebate parameters. Accessed 13 August 2026.
Related reading
- Land transfer tax in Toronto: 2026 rates, rebates and worked examples
- How much is the minimum down payment in Ontario? (2026 rules)
- Status certificates for Ontario condos, explained
- Etobicoke community guide
- Humber Bay Shores condo buildings guide
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, a licensed Realtor with RE/MAX Quantum Realty in Etobicoke, Toronto, working with buyers, sellers and investors across the GTA. I write these guides myself and verify every figure against the primary government source before publishing — the same sources are linked above so you can check them too.
Reach me at connect@jatindua.com or 437-987-1925.