Cost of Buying a House in Ontario: 2026 Buyer's Guide

Saving the down payment feels like the finish line. It isn't. On closing day you'll need real money on top of it — land transfer tax, legal fees, insurance premiums and a handful of smaller charges that together run roughly 1.5% to 4% of the purchase price in the GTA. Toronto sits at the high end because it charges land transfer tax twice. Here's every cost, with 2026 numbers, and a full worked example on a $900,000 purchase.

Land transfer tax — the biggest closing cost

Ontario charges land transfer tax (LTT) on a sliding scale. Your lawyer calculates and remits it on closing — it cannot be added to your mortgage.

On a $900,000 purchase, that works out to $14,475.

Buying in Toronto? It doubles.

The City of Toronto charges its own municipal land transfer tax (MLTT) on top, mirroring the provincial brackets. The same $900,000 home inside Toronto's borders costs $14,475 + $14,475 = $28,950 in land transfer tax before rebates. Above $3 million, Toronto's luxury tiers climb further still. This is a big part of why the same budget stretches further in Brampton or Mississauga than in Toronto proper.

First-time buyer rebates

• Ontario: up to $4,000 back — fully covers the provincial LTT on homes up to $368,333.
• Toronto: up to $4,475 more — fully covers the MLTT on homes up to $400,000.
• Eligibility: you're 18+, have never owned a home anywhere in the world, your spouse hasn't owned one while married to you, and you'll move in within nine months of closing.

Your lawyer claims both rebates instantly at closing — you pay only the net amount, no waiting for a refund cheque.

Down payment minimums in 2026

• 5% of the first $500,000;
• 10% of the portion between $500,000 and $1.5 million;
• 20% once the price hits $1.5 million or more (insured mortgages aren't available above that).

So the legal minimum on a $900,000 home is $25,000 + $40,000 = $65,000. Put down less than 20% and your mortgage must be insured — which brings us to a cost most first-time buyers have never heard of.

Mortgage default insurance — and the PST trap

With less than 20% down, you pay a default-insurance premium (CMHC, Sagen or Canada Guaranty — same rates): 4.00% of the loan with 5–9.99% down, 3.10% with 10–14.99% down, 2.80% with 15–19.99% down.

The premium itself gets added to your mortgage, so it doesn't touch your closing-day cash. But Ontario charges 8% provincial sales tax on that premium, and the PST is due in cash at closing. On a $900,000 purchase with 10% down, the premium is $25,110 (rolled into the loan) and the PST is about $2,009 — a line item almost nobody budgets for. Note that insured 30-year amortizations (available to first-time buyers and on new builds) carry a small premium surcharge on top.

The professionals you'll pay

• Real estate lawyer: typically $1,500–$2,500 in fees, plus disbursements and registration charges (usually a few hundred dollars more). Not optional — Ontario closings require one.
• Title insurance: a one-time premium, typically $400–$900 depending on price. Protects against title defects, survey issues and fraud; virtually every lender requires it.
• Home inspection: $400–$700. In a market full of listings advertising finished basements and “in-law suites,” an inspection plus paperwork check is cheap insurance — see our guide to verifying a legal second unit in Brampton for why the listing's claims aren't enough.
• Appraisal: $300–$600 if your lender orders one — often covered by the lender or waived on insured files.
• Condo status certificate: capped at $100. Your lawyer reviews it before your condition comes off — never skip it.

What about your buyer's agent? In most GTA resale transactions the seller pays the co-operating commission out of their proceeds. Under TRESA, your buyer representation agreement spells out exactly what you'd owe if a seller offers less than the agreed rate — read it and ask before you sign, don't assume.

Adjustments, insurance, and closing-day logistics

The statement of adjustments reconciles what the seller prepaid: if they've paid property tax or flat-rate utilities past the closing date, you reimburse the difference. Budget a few hundred to a couple of thousand dollars depending on timing. You'll also need home insurance in place before closing — your lender won't advance funds without proof — and you'll send your cash-to-close to your lawyer's trust account by wire or bank draft a day or two before. Add $1,000–$3,000 for movers if you're not doing it with a rented van and three friends.

Buying new construction? Different math.

Resale homes are HST-exempt. New construction attracts HST, though for owner-occupiers the rebates are usually assigned to the builder and baked into the advertised price. First-time buyers get extra help in 2026: the federal GST rebate removes the 5% federal portion of HST on new builds priced up to $1 million, phasing out by $1.5 million. But pre-construction adds its own closing costs — development charges (cap them in your agreement), Tarion enrolment, utility connection fees, and interim occupancy payments before final closing. We've covered the full picture in our pre-construction buyer's guide, and assignment purchases carry their own tax rules again.

Worked example: $900,000 detached in Brampton

First-time buyer, 10% down ($90,000), insured mortgage:

Total cash needed: roughly $106,800 — about $16,800 of closing costs on top of the down payment, call it 1.9% of the price. The same house inside Toronto adds another $14,475 of MLTT less the $4,475 rebate: $10,000 more, pushing closing costs to roughly 3% of the price. Not a first-time buyer? Add the rebate amounts back.

Where the help is in 2026

• FHSA: $8,000 a year, $40,000 lifetime — deductible going in, tax-free coming out for a first home. If you're 2+ years from buying, open one now to bank contribution room.
• RRSP Home Buyers' Plan: withdraw up to $60,000 per person, repayable over 15 years. A couple can combine FHSA + HBP.
• First-Time Home Buyers' Tax Credit: worth $1,500 on your next return.
• Land transfer tax rebates: up to $4,000 (Ontario) + $4,475 (Toronto), claimed at closing.

Quick answers

Do I pay HST on a resale home?

No — resale residential purchases are HST-exempt. You do pay HST on the services around the deal: legal fees, inspection, movers.

Can I roll closing costs into my mortgage?

Generally no. The default-insurance premium is the only major cost that rides the loan. Land transfer tax, legal fees and the rest are cash on closing day — budget for them from day one.

What's the safe rule of thumb?

Set aside 2% of the purchase price outside Toronto, 3–4% inside Toronto, on top of your down payment. If you end up under, you've got your moving fund.

Run your own numbers

Browse homes for sale across the GTA with live TRREB data, compare Brampton, Mississauga and Toronto pricing, or use our calculators to model your monthly payment. Selling one home to buy the next? Pair this with the cost of selling guide so you know both sides of the ledger — and if you're a first-time buyer, our Mississauga first-time buyer guide walks the whole process end to end.

Figures reflect statutory rates and typical GTA ranges as of August 2026. This is general information, not legal or tax advice — confirm your exact numbers with your lawyer and lender before you waive conditions.