Ontario Condo Closing Costs: What Buyers Should Budget for in 2026

Closing costs are expenses associated with completing the purchase of a property that are separate from the purchase price itself.

For an Ontario condo buyer, these can include provincial land transfer tax, Toronto municipal land transfer tax when applicable, legal expenses, title insurance, mortgage-insurance sales tax and adjustments for expenses the seller has already paid.

The exact amount depends on the property, location, financing and transaction. That is why it is useful to budget for closing costs separately from your down payment.

Ontario generally charges land transfer tax when ownership of land is transferred. The tax is calculated using graduated brackets rather than applying one tax rate to the entire purchase price.

*The 2.5% bracket applies to qualifying land containing one or two single-family residences.

Official source: Ontario — Calculating Land Transfer Tax ↗

An eligible first-time homebuyer may receive a refund of some or all Ontario land transfer tax, up to a maximum of $4,000.

The provincial definition has specific eligibility rules. For example, previous ownership of a home or an interest in a home anywhere in the world can affect eligibility, and a spouse's ownership history can also matter.

This is one reason Condo Cost Ontario treats mortgage first-time-buyer eligibility separately from land-transfer-tax refund eligibility.

Official source: Ontario — First-Time Homebuyer Refund ↗

Buying within the City of Toronto can result in a second land transfer tax: the Municipal Land Transfer Tax, or MLTT.

This is charged in addition to Ontario land transfer tax, which means Toronto buyers can face a significantly larger upfront tax bill than buyers purchasing a similarly priced property elsewhere in Ontario.

Toronto uses graduated MLTT rates. Higher rates also apply to portions of certain high-value residential properties, with revised luxury-property brackets effective April 1, 2026.

Official source: City of Toronto — MLTT Rates and Fees ↗

Buyers with an insured mortgage may have a mortgage default insurance premium. The premium can generally be added to the mortgage balance, which means it does not necessarily have to be paid entirely in cash at closing.

Ontario, however, applies provincial sales tax to mortgage loan insurance premiums. That tax cannot be added to the mortgage and must be paid when the mortgage is obtained.

This creates an easily overlooked upfront expense for some buyers using less than a 20% down payment.

Official source: Government of Canada — Down Payments and Mortgage Insurance ↗

A real-estate lawyer handles important parts of the closing process, including reviewing documents, transferring funds, registering the transfer and mortgage, and completing other required legal work.

Legal bills can also include disbursements and registration expenses. Pricing varies by lawyer and by the complexity of the transaction, so an actual quote is more useful than relying on a generic estimate.

Condo Cost Ontario therefore makes the legal-fee field editable rather than treating one number as universally correct.

Title insurance is commonly arranged as part of an Ontario residential real-estate closing. Its cost depends on the policy and transaction.

Your lawyer can explain the coverage being obtained and the actual premium associated with your purchase.

Some costs are adjusted between the buyer and seller at closing. For example, if the seller has prepaid certain property-related expenses beyond the closing date, the buyer may need to reimburse the seller for the applicable portion.

Adjustments vary from transaction to transaction, which is why they should be treated as a flexible part of your closing-cost budget rather than a fixed government charge.

Your down payment and closing costs are different.

The down payment reduces the amount you need to borrow. Closing costs cover taxes, professional services and other expenses associated with completing the purchase.

A buyer can therefore have enough money for the minimum down payment but still be short of the total cash required to close the transaction.

Consider a $500,000 resale condo outside Toronto. Ontario land transfer tax before any first-time-buyer refund would be approximately $6,475.

An eligible first-time buyer could potentially reduce that provincial tax by up to $4,000, bringing the net provincial land transfer tax in this example to approximately $2,475.

Legal costs, title insurance, adjustments and any applicable mortgage-insurance tax would still need to be considered.

A Toronto purchase would also need to account for Toronto's municipal land transfer tax.

There is no single closing-cost percentage that accurately represents every Ontario condo purchase.

Location alone can make a substantial difference because a Toronto property may incur municipal land transfer tax while a property elsewhere in Ontario does not. Down-payment size, first-time-buyer eligibility and transaction-specific expenses can also materially change the result.

A better approach is to calculate the known taxes and then add realistic estimates or quotes for the remaining expenses.

This guide and the Condo Cost Ontario calculator are provided for informational and planning purposes only. They are not legal, tax, mortgage, financial or real-estate advice.

Rules, taxes and transaction costs can change, and individual circumstances may be treated differently. Confirm material figures with the appropriate government authority, lender, lawyer or other qualified professional before completing a purchase.