Closing costs in Ontario are the purchase expenses you need to plan for beyond your down payment. Some are paid before closing day; others appear in the final statement prepared by your lawyer. Keeping these amounts separate from your down payment helps you build a more realistic savings target.
The useful question is not simply, “What percentage should I save?” It is, “Which costs apply to this property, when are they due, and who can confirm the amount?” This checklist helps you organize that conversation before you commit to a purchase.
What counts as a home buying cost?
The Financial Consumer Agency of Canada identifies legal fees, inspection fees, property-tax adjustments and title insurance among common upfront costs. Its home buying overview is a starting point, but your transaction needs its own itemized estimate.
Separate three groups in your worksheet: amounts paid during the search and offer stage, amounts due at closing, and expenses for moving in. That distinction helps you avoid having enough money overall but not enough accessible cash when a payment is due.
Ontario land transfer tax
Ontario generally charges land transfer tax when you acquire land or an interest in land. Eligible first-time homebuyers may qualify for a refund of some or all of the provincial tax. Do not assume that being a first-time buyer automatically makes the tax zero.
Ask your lawyer to calculate the tax for the exact purchase and check your eligibility using the Ontario Ministry of Finance’s land transfer tax guidance. Ask whether any municipal transfer tax also applies at the property’s location. Your closing budget should reflect the actual address, not a friend’s experience in another city.
Legal fees, disbursements and title insurance
Request a written estimate showing the professional fee separately from other charges and taxes. Ask which searches, registration expenses and insurance costs are included, which are estimates, and what circumstances could change the total. An itemized quote is easier to compare than a single advertised figure.
Keep the quote with your purchase paperwork. As closing approaches, ask your lawyer to explain the final statement and confirm exactly how and when funds must be provided.
Inspection, appraisal and property-specific expenses
Discuss inspection arrangements with your real estate professional, including the scope and price of the work. Ask your lender whether an appraisal is required and whether you must pay for it. The purpose and timing of these services differ, so keep them as separate lines in your budget.
For a condominium, rural property or newly built home, ask what additional document reviews, assessments or contract charges apply. Avoid copying an estimate for a different property type without checking each item.
Adjustments and moving-day costs
Property-tax adjustments are one example of an amount that can appear in the closing calculation. Ask your lawyer to explain the adjustments in your transaction and when they will become final.
Keep moving expenses outside the down-payment calculation too. Your practical worksheet can include movers or truck rental, insurance arrangements, utility setup and essential supplies. Leave room for the unexpected rather than spending the full reserve on furniture before possession.
A simple closing-cost worksheet
- Item: name the expense clearly.
- Estimate: record the current amount and who supplied it.
- Due date: distinguish before-closing and closing-day payments.
- Confirmed amount: update it when a quote or statement arrives.
- Paid: note the date so you do not count the same amount twice.
Are closing costs included in the down payment?
No. Treat your down payment and purchase expenses as separate budget categories. Your lender and lawyer can confirm how the deposit, remaining down payment and other charges are reflected in the final funds required.
For the wider purchase timeline, use our first-time home buyer checklist. Preparing financing? Read our mortgage preapproval guide, or contact Home Buying Seminars with your learning questions.
General educational information, reviewed October 2026. Confirm requirements and costs for your purchase with the relevant lender, lawyer or other qualified professional.
