In short
Plan for about 1.5% to 4% of the purchase price. Land transfer tax is usually the biggest piece.
Lenders want to see that you have it in the bank before they approve your mortgage.
What's included in Ontario
Closing costs are the one-time expenses you pay to complete a purchase, on top of your down payment. The Financial Consumer Agency of Canada suggests budgeting 1.5% to 4% of the purchase price.
In Ontario, the biggest item is usually provincial land transfer tax. Others include your lawyer's fees and disbursements, title insurance, and the 8% sales tax on any mortgage default insurance premium.
Depending on the home, you may also pay for a home inspection, an appraisal, a status certificate review for a condo, and moving and utility hookup costs.
Adjustments: the number that moves at the end
Adjustments settle costs the seller has already prepaid for time you'll own the home, such as property tax, condo fees or fuel. If the seller paid the year's taxes in advance, you reimburse them for the days after closing.
Your lawyer prepares a statement of adjustments in the final days before closing. That's why the exact amount you need can change in the last week.
What Ottawa buyers don't pay
Toronto buyers pay a second, municipal land transfer tax. Ottawa has no municipal land transfer tax, so buyers here pay only the provincial one.
First-time buyers who qualify can get up to $4,000 of the provincial tax refunded, which can make a real difference to the cash you need on closing day.
Buyers of newly built homes should also read the builder's agreement closely, since new construction can carry extra closing charges that resale homes don't.
Why lenders care
Lenders generally want proof that you have enough set aside for closing costs before they approve your mortgage. Keeping that cash separate from your down payment makes the approval smoother.
Ask your lawyer for a cost estimate early, and keep a cushion for surprises such as a higher adjustment or a last-minute title issue. Running short on closing day can delay the deal, and a late closing can bring extra costs of its own.
Common questions about closing costs
How much are closing costs in Ontario?
Plan for about 1.5% to 4% of the purchase price. Land transfer tax is usually the largest piece, followed by legal fees, title insurance and adjustments. Your lawyer gives you the exact figure in the statement of adjustments shortly before closing.
Do Ottawa buyers pay municipal land transfer tax?
No, Ottawa doesn't charge a municipal land transfer tax. Only Toronto has one in Ontario. Ottawa buyers pay the provincial land transfer tax, and qualifying first-time buyers can get up to $4,000 of it refunded. That's one of the bigger cost differences between the two cities.
Can closing costs be added to my mortgage?
Generally no, closing costs are paid in cash on or before closing. Lenders usually want to see that you have the funds before approving your mortgage. The default insurance premium can be added to the loan, but the 8% Ontario sales tax on it cannot.
What are adjustments on closing?
Adjustments are credits and charges that split prepaid costs between buyer and seller as of the closing date. Common examples are property tax, condo fees and utilities. They appear on your lawyer's statement of adjustments and can raise or lower the amount you bring.
Sources
General information for Ontario, updated October 2026. Not legal, tax or mortgage advice. Rules change, so confirm with your lawyer, lender or the source above before you rely on it.