Published 7 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Get My Free Estimate →The only closing costs that are genuinely fixed and knowable in advance are the two land transfer taxes. On a $5,000,000 purchase in the City of Toronto they come to $271,450 — $111,475 provincially and $159,975 municipally — payable in cash on closing, in addition to your down payment.
Everything else is a category rather than a number: legal fees, title insurance, disbursements and searches, adjustments for property tax and utilities, and, on a newly built home, HST with no meaningful rebate above $450,000. Your lawyer will give you an exact statement of adjustments before closing; nothing on a website can.
The fixed part: land transfer tax
| Purchase price | Ontario LTT | Toronto MLTT | Total, cash on closing |
|---|---|---|---|
| $2,000,000 | $36,475 | $36,475 | $72,950 |
| $3,000,000 | $61,475 | $61,475 | $122,950 |
| $4,000,000 | $86,475 | $105,475 | $191,950 |
| $5,000,000 | $111,475 | $159,975 | $271,450 |
| $10,000,000 | $236,475 | $484,975 | $721,450 |
A City administration fee of $102.56 plus HST also applies. Outside the City of Toronto, only the provincial tax applies — $111,475 on a $5 million purchase in Mississauga, Oakville, Vaughan or Markham.
The rest of the list
Legal fees and disbursements
Your lawyer’s fee, plus searches, registration costs and other disbursements. Complexity drives this: a corporate purchaser, a trust, a ravine or heritage property, or an unusual title history all add work.
Title insurance
Standard practice in Ontario residential transactions and generally required by lenders. It covers defects in title, certain survey and encroachment issues, and some fraud risks. Ask your lawyer what your specific policy does and does not cover.
Adjustments
The apportionment of prepaid or accrued costs between seller and buyer: property taxes, utilities, fuel where applicable, and in a condominium the common expenses. These appear on the statement of adjustments.
HST, on a new build only
GST/HST applies to a newly constructed or substantially renovated home sold by a builder. The federal new housing rebate phases out entirely at $450,000 and the Ontario portion caps at $24,000, so at luxury prices there is no meaningful rebate. The First-Time Home Buyers’ GST rebate introduced for agreements from 27 May 2025 is nil at or above $1,500,000. Note that real estate commission and legal fees are separately subject to HST on any transaction.
Mortgage-related costs
Appraisal, and any lender fees. On uninsured lending at this level the appraisal is a live risk as well as a cost — if it comes in below the purchase price, the lender advances against the lower figure and the difference comes from your own funds.
Non-resident buyers
Where the buyer is a foreign national, foreign corporation or taxable trustee, Ontario’s Non-Resident Speculation Tax at 25% and Toronto’s Municipal Non-Resident Speculation Tax at 10% apply on top of everything above. On a $5 million purchase that adds $1,750,000.
What starts the day after closing
- Property tax, on Current Value Assessment
- Insurance, priced on replacement cost rather than market value
- Utilities, which on a large house are a serious number
- Condominium common expenses, where applicable
- The annual Vacant Home Tax declaration — mandatory for every residential property in Toronto, occupied or not. Failing to declare defaults the property to vacant and triggers tax at 3% of Current Value Assessment, with a penalty of up to $10,000 for a false declaration or failure to provide required information.
The practical takeaway
Two numbers matter most and both are knowable in advance: the land transfer tax, which is fixed and not financeable, and the total cash required to close. Get your lawyer to prepare a preliminary statement early rather than accepting a rough estimate, and diarise the vacant home tax declaration the day you take possession.
Frequently asked questions
What are the closing costs on a $5 million Toronto home?
Land transfer tax of $271,450 is the fixed component: $111,475 provincially and $159,975 municipally under the rates in force since 1 April 2026. Add legal fees, title insurance, disbursements and searches, and adjustments for property tax and utilities. On a new build, HST applies as well.
Can closing costs be added to the mortgage?
Land transfer tax is payable in cash on closing and is not financeable. This is the most common budgeting error in high-value Ontario purchases — buyers plan the down payment and forget a six-figure tax bill.
Is title insurance necessary?
It is standard practice in Ontario residential transactions and most lenders require it. It protects against defects in title, certain survey and encroachment issues, and some kinds of fraud. Your lawyer will explain what your specific policy covers.
What are adjustments?
The apportionment between buyer and seller of costs the seller has prepaid or accrued — property taxes, utilities, and in a condominium the common expenses. They appear on the statement of adjustments your lawyer prepares before closing.
Do I pay HST when buying a resale home?
Generally not. HST applies to a newly constructed or substantially renovated home sold by a builder. Resale of a used residential home is generally exempt. Real estate commission and legal fees are separately subject to HST.
What ongoing costs start on closing?
Property tax, insurance, utilities, and in a condominium the monthly common expenses. In Toronto you also inherit the annual Vacant Home Tax declaration obligation for the property, which must be filed every year regardless of occupancy.
Thinking about buying or selling at the top end?
Send me the address, or the shortlist you are considering. I will tell you what the property is actually worth today, what the land is worth without the house, what the transfer tax and carrying costs will be, and whether the deal makes sense. Confidential, always.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Read personally and answered within 24 hours. I never share, sell or distribute your information.
Related reading
- Land transfer tax on a luxury home in Toronto: the full 2026 numbers
- Toronto raised its luxury land transfer tax again: what changed on 1 April 2026
- Toronto’s vacant home tax at 3%: what it costs on a luxury home
- Buying a luxury house in Toronto: the complete 2026 guide
Sources
Everything above that is a rule, a rate or a published number comes from these. Verify anything that matters to your own deal.
- City of Toronto — Municipal Land Transfer Tax rates and fees
- Government of Ontario — Calculating land transfer tax
- City of Toronto — Vacant Home Tax
- Department of Finance Canada — First-Time Home Buyers’ GST rebate
About the author — Jatin Dua, Broker of Record
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke, and I work with buyers, sellers and investors across Toronto and the west GTA. A large part of my work sits in the upper end of the market, where the comparables are thin, the rules are heavier and the cost of a wrong number is measured in hundreds of thousands of dollars.
The free estimators on this site are mine. I built them because the first question every owner asks is “what is it worth?” and the honest answer starts with a number you can check yourself. connect@jatindua.com or 437-987-1925.