How Much Are Closing Costs in Ontario?

Posted Aug 2nd 2023 in

Closing costs are part of the home-buying process, and a reputable real estate agent will ensure you understand these fees. Closing costs include a combination of fees, including legal fees and appraisal costs. 

Closing costs will vary from one home buyer to another, and it is hard to know exactly how much this fee will amount to for each homeowner. All buyers must pay some closing costs regardless of where they live in Ontario or the type of home they buy, and there are buyer-specific closing costs. In Ontario, real estate agents usually recommend budgeting between 1.5% and 4% of the home’s purchase price. 

Most home buyers will have to consider the following list of closing costs:

Land Taxes

Every real estate purchase in Ontario is subject to land taxes, and the amount of tax you pay will depend on the home’s purchase price. Buyers should know that certain municipalities have their own property transfer taxes. If you were to buy a home in Toronto, for example, the sale would be subject to both Ontario’s provincial land transfer tax and Toronto’s municipal property transfer tax. 

Legal Fees

When you purchase a home in Ontario, you will need to hire a real estate attorney to close the deal. A real estate lawyer will review important documents like the purchase agreement and mortgage contract, help with the title search, and register a title in your name. 

Appraisal Fee

Most mortgage lenders require borrowers to have their homes appraised before they approve them for a mortgage loan to confirm the house’s market value and decide how much money to loan you. The home buyer is responsible for paying a professional appraiser, although the lender may agree to waive this fee in some cases. 

Home Inspection Fee

While conducting a home inspection before buying a home is not mandatory, it is very common and highly recommended. Hiring a professional inspector to complete this step before you sign any documents is a wise decision, as home buyers can rest easy knowing there are no major issues or repairs that need to be made. In most cases, the cost of a home inspection is usually the buyer’s responsibility, and this fee is worth paying because the report will reveal very important information. 

Title Insurance

This is generally required by mortgage lenders and is needed in the event that a property ownership dispute arises after you purchase the home. A real estate agent can handle the purchase of title insurance on your behalf, which means it may be incorporated into your closing costs. 


Do you need more information regarding closing costs in Ontario? The Baird Team can provide you with every detail, and we will tell you all the costs you should expect to pay. Not only do we have access to houses for sale in the Durham region including, Oshawa, Bowmanville, and Courtice, but we also take the time to answer questions and will help you make informed decisions regarding a home purchase in Ontario.

Contact us today to find out more! ►