First-Time Home Buyer Closing Costs in Ontario: 2026 Guide

You saved the down payment. You got pre-approved. Then your lawyer sends the statement of adjustments and there's a five-figure number you didn't budget for. Closing costs are the part of buying a first home that catches more Ontario buyers off guard than anything else — so here is every line item, what it actually costs in 2026, and the three rebates that can put thousands of dollars back in your pocket.

Quick answer: Budget roughly 1.5%–4% of the purchase price for closing costs on top of your down payment. The biggest single item is Ontario land transfer tax — but first-time buyers get up to $4,000 back from the province, up to $8,475 combined if buying in Toronto, and buyers of new builds may qualify for the federal first-time buyer GST rebate of up to $50,000 that became law in March 2026.

What counts as a closing cost?

Closing costs are everything you pay on or before closing day that isn't the down payment itself. For a typical Ontario resale purchase, the list looks like this:

• Land transfer tax (provincial, plus municipal if you buy in Toronto)
• Legal fees and disbursements
• Title insurance
• Home inspection and appraisal
• Ontario PST on your mortgage default insurance premium (if you put down less than 20%)
• Adjustments — reimbursing the seller for prepaid property tax or utilities
• Moving, utility hookups, and immediate odds and ends

Land transfer tax: the biggest line item

Ontario charges land transfer tax on a sliding scale based on the purchase price:

• 0.5% on the first $55,000
• 1.0% on $55,000 to $250,000
• 1.5% on $250,000 to $400,000
• 2.0% on $400,000 to $2,000,000
• 2.5% above $2,000,000

The Ontario first-time buyer rebate: up to $4,000

Qualifying first-time buyers get a refund of up to $4,000, which completely wipes out the provincial land transfer tax on the first $368,000 of the purchase price. To qualify you must be at least 18, have never owned a home (or an interest in one) anywhere in the world, and move into the home as your principal residence within nine months of closing. If your spouse has owned a home while they were your spouse, that can affect your eligibility — ask your lawyer before you count on the rebate.

Buying in Toronto? Second tax, second rebate

The City of Toronto charges its own municipal land transfer tax on top of the provincial one, with rates that mirror the provincial brackets for most price ranges. The good news: Toronto has its own first-time buyer rebate of up to $4,475, which stacks with the provincial rebate for combined relief of up to $8,475. Buying in Brampton, Mississauga, Ajax, or anywhere else in the 905? There is no municipal land transfer tax at all — one of the quiet financial advantages of buying outside Toronto proper.

A worked example

On an $800,000 resale home in Brampton, the provincial land transfer tax works out to $12,475. Subtract the $4,000 first-time buyer rebate and your net land transfer tax is $8,475. The same home inside Toronto city limits would add municipal land transfer tax on top, less the $4,475 municipal rebate.

Legal fees, title insurance, and the paperwork stack

A real estate lawyer is mandatory in Ontario, and most first-time buyers pay roughly $1,500–$2,500 including disbursements (registration fees, searches, couriers). Title insurance — a one-time premium that protects you against title defects, survey issues, and title fraud — typically runs $250–$500 and is usually arranged through your lawyer. If you are buying a condo, your lawyer will also review the status certificate; in Ontario the fee for the certificate itself is capped at $100.

Home inspection and appraisal

A home inspection is optional but strongly recommended on resale homes, and typically costs $400–$700 in the GTA. Your lender may also require an appraisal; expect $300–$500 if it isn't covered, though many lenders absorb this cost on approved files.

Putting down less than 20%? Watch the PST on mortgage insurance

With less than 20% down, your mortgage must be insured (CMHC, Sagen, or Canada Guaranty). The premium is a percentage of the loan:

• 5%–9.99% down: 4.00% of the mortgage amount
• 10%–14.99% down: 3.10%
• 15%–19.99% down: 2.80%

The premium itself gets added to your mortgage, so it doesn't hit your closing-day cash — but Ontario charges 8% PST on the premium, and that is due in cash at closing. On our $800,000 example with 5% down, the premium is about $30,400 and the PST about $2,432. Two other rules first-time buyers should know: insured mortgages are available on homes priced up to $1.5 million, and first-time buyers can take a 30-year amortization on an insured mortgage, which lowers the monthly payment.

Buying pre-construction or a new build? The new GST rebate

The federal First-Time Home Buyers’ GST Rebate became law in March 2026. It eliminates the GST (the federal portion of HST) on a new or substantially renovated home priced up to $1 million — worth up to $50,000 — with partial relief phasing out between $1 million and $1.5 million. It applies to qualifying purchase agreements through 2030; the agreement date matters, so have your lawyer or builder confirm your deal qualifies before you count the savings.

New builds also carry their own closing-cost quirks: Tarion warranty enrolment, development charges and levies (negotiate a cap in your purchase agreement), and larger adjustment amounts than resale. If you are considering this route, start with our guide on how to buy a pre-construction condo in Toronto and browse current projects on the Pre-Con page.

Where the down-payment help comes from: FHSA + HBP

Two federal programs can meaningfully shrink how long it takes to get to closing day:

• First Home Savings Account (FHSA): contribute up to $8,000 per year to a $40,000 lifetime limit. Contributions are tax-deductible like an RRSP, and qualifying withdrawals are tax-free with no repayment required.
• Home Buyers’ Plan (HBP): withdraw up to $60,000 from your RRSP tax-free, repaid over 15 years.

They stack: one buyer can combine both for up to $100,000, and couples can each use both programs on the same home.

The bottom line: a realistic budget

For that $800,000 Brampton example with 5% down, a realistic closing-cost budget looks like: $8,475 net land transfer tax, roughly $2,000 legal, $400 title insurance, $500 inspection, $2,432 PST on the insurance premium, and $500–$1,500 in adjustments — call it $14,500–$15,500 in cash beyond the down payment, or just under 2% of the purchase price. In Toronto, add the net municipal land transfer tax; on a new build, potentially subtract tens of thousands via the GST rebate.

Frequently asked questions

How much are closing costs in Ontario for a first-time buyer?

Plan for 1.5%–4% of the purchase price. Land transfer tax is the biggest driver, which is why the range is wider in Toronto (two taxes) than in the 905 (one tax).

Do first-time buyers pay land transfer tax in Ontario?

Yes, but the provincial rebate refunds up to $4,000 — meaning no provincial land transfer tax at all on the first $368,000 of the price. Toronto buyers get an additional municipal rebate of up to $4,475.

Can I add closing costs to my mortgage?

Generally no — closing costs are due in cash on closing day. The one exception is the mortgage default insurance premium, which is rolled into the mortgage (though its 8% Ontario PST is cash at closing).

Who qualifies as a first-time buyer for the land transfer tax rebate?

You must be 18 or older, have never owned a home or an interest in one anywhere in the world, and occupy the home as your principal residence within nine months. Your spouse’s ownership history can affect eligibility.

Budget once, close with confidence

Closing costs are predictable once you know the list — the buyers who get burned are the ones who never saw the list. If you are starting your search, browse live MLS listings on the Buy page, try the affordability and payment tools, or explore city guides for Brampton, Mississauga, and Toronto. Already own and planning to move up? The Sell page covers how to position your current home. Figures above are current as of July 2026 and programs do change — confirm the details with your lawyer and lender before closing.