Closing Costs in Toronto: What Buyers and Sellers Really Pay
Land transfer tax (twice), legal fees, inspections, adjustments and more: what to budget for when you buy or sell a home in Toronto.
Updated October 2026 · Written by Candice Schott, Broker, Schott & Co., Royal LePage Signature Realty, Brokerage
Closing costs in Toronto are higher than anywhere else in Ontario because buyers pay land transfer tax twice: once to the province and once to the City. On a $1 million home, that alone is $32,950. Add legal fees, title insurance, an inspection and adjustments, and most buyers should budget roughly 3% to 4% of the price on top of the down payment, less with first-time buyer rebates.
This guide from Candice Schott, Broker and co-founder of Schott & Co., lists every closing cost for buyers and sellers in Toronto, with land transfer tax worked out at common prices.
The short version
- Toronto buyers pay Ontario and Toronto land transfer tax.
- First-time buyers can get up to $8,475 of it back.
- Budget for legal fees, title insurance, an inspection and adjustments too.
- Sellers pay real estate fees, legal fees and any mortgage penalty.
What are closing costs when you buy a home in Toronto?
Closing costs are everything you pay to complete the purchase, apart from the down payment. Most are due on or before closing day, and your lawyer collects them. The main ones:
- Ontario land transfer tax
- Toronto municipal land transfer tax
- Legal fees and disbursements, including searches and registration
- Title insurance
- Home inspection
- Adjustments for property tax, utilities or condo fees the seller prepaid
- Sales tax on mortgage insurance, if you put less than 20% down
- Moving costs
How much is land transfer tax in Toronto?
Ontario and the City of Toronto use the same rates up to $3 million: 0.5% up to $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2 million and 2.5% above that, according to the Government of Ontario and the City of Toronto. Since April 1, 2026, Toronto charges higher municipal rates above $3 million, starting at 4.4%.
| Purchase price | Ontario | Toronto | Total |
|---|---|---|---|
| $600,000 | $8,475 | $8,475 | $16,950 |
| $800,000 | $12,475 | $12,475 | $24,950 |
| $1,000,000 | $16,475 | $16,475 | $32,950 |
| $1,250,000 | $21,475 | $21,475 | $42,950 |
| $1,500,000 | $26,475 | $26,475 | $52,950 |
| $2,000,000 | $36,475 | $36,475 | $72,950 |
"Put it in the budget now, not at the lawyer's office." — Candice Schott
Do first-time buyers pay less land transfer tax?
Yes. First-time buyers can get up to $4,000 back from Ontario and up to $4,475 back from the City of Toronto, so up to $8,475 in total. To qualify, you must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and move in within nine months. If your spouse owned a home while you were together, neither of you qualifies. See our first-time buyer guide for the full breakdown.
What other closing costs should buyers expect?
Legal fees and disbursements. Your real estate lawyer reviews the agreement, searches title, handles your mortgage and registers the transfer. Get a written quote before you make an offer, and ask what's included.
Title insurance. Most lenders require it. It protects against title problems, fraud and some survey issues.
Home inspection. Worth it on almost every purchase, even in a competitive market where you may inspect before offer night.
Adjustments. If the seller prepaid property tax or condo fees past closing, you reimburse them for your share.
Mortgage insurance sales tax. With less than 20% down, the insurance premium is added to your mortgage, but Ontario's sales tax on it is due in cash at closing.
Are there extra closing costs on a new build or condo?
Often, yes. On a new build or pre-construction condo, read the agreement for development charges, education levies, utility connection fees and Tarion warranty enrolment, which can be passed on to the buyer. Check how HST is handled too. Eligible first-time buyers may qualify for the federal First-Time Home Buyers' GST/HST rebate on new homes, according to the Canada Revenue Agency. On any resale condo, budget for your lawyer to review the status certificate.
What closing costs do sellers pay in Toronto?
Sellers don't pay land transfer tax, but they do pay:
- Real estate fees, as set out in your listing agreement, plus HST
- Legal fees to close the sale and discharge your mortgage
- Mortgage prepayment penalty, if you break your mortgage early
- Adjustments, if you owe prepaid amounts to the buyer
- Moving and prep costs, such as small repairs, cleaning and staging
On a fixed-rate mortgage, the penalty is usually the greater of three months' interest or the interest rate differential, according to the Financial Consumer Agency of Canada. Ask your lender for the exact amount in writing before you list.
How much should you budget in total?
Buying
- Repeat buyer: roughly 3% to 4% of the price
- First-time buyer: less, after rebates
- New build: check the agreement for extras
On top of your down payment
Selling
- Real estate and legal fees
- Any mortgage penalty
- Prep and moving costs
Paid from your sale proceeds
Moving up? Our Upsizing Calculator adds up both sides of the move, and our upsizing guide explains the timing.
Common questions about Toronto closing costs
Why is land transfer tax higher in Toronto?
Because the City of Toronto charges its own municipal land transfer tax on top of Ontario's. On a $1 million home, that's $16,475 to each, or $32,950 in total.
How much is land transfer tax on an $800,000 home in Toronto?
$24,950 in total: $12,475 to Ontario and $12,475 to the City of Toronto. A first-time buyer would pay $16,475 after both rebates.
Can land transfer tax be added to my mortgage?
No. Land transfer tax is due in cash on closing, along with legal fees and other closing costs. Only the mortgage insurance premium itself can be added to the mortgage.
Who pays land transfer tax, the buyer or the seller?
The buyer. Sellers in Ontario don't pay land transfer tax.
Is there a higher land transfer tax for luxury homes in Toronto?
Yes. Since April 1, 2026, Toronto's municipal rate rises above $3 million, starting at 4.4%, according to the City of Toronto. Ontario's rate tops out at 2.5% above $2 million for one or two single-family homes.
Who is Candice Schott?
Candice Schott is a Broker with Royal LePage Signature Realty, Brokerage, who co-leads Schott & Co. with Jason Schott, Sales Representative. Since 2005 they've sold more than 500 Toronto homes.
Want your real numbers?
We'll work out your closing costs for the home you're looking at, before you make an offer. Get in touch with Candice and Jason →
Sources: Government of Ontario, calculating land transfer tax · Government of Ontario, first-time buyer refund · City of Toronto, MLTT rates · City of Toronto, MLTT rebate · CRA, First-Time Home Buyers' GST/HST rebate · FCAC, prepayment penalties
General information, not legal, tax or financial advice. Confirm your closing costs with your real estate lawyer and lender. Not intended to solicit buyers or sellers currently under contract.