Ontario Closing Costs: A Buyer and Seller Guide

Start with the right budget

For a purchase, start with the price, deposit already paid and mortgage funds expected. Your lawyer’s closing statement accounts for the balance, adjustments and applicable expenses. Avoid relying on a general percentage as your final figure.

For a sale, the sale price is not the amount you receive. Existing financing, commission, adjustments and closing costs can reduce the proceeds.

A worked example: the balance is not the whole budget

Imagine a resale purchase for $800,000, with a $40,000 deposit already paid and $640,000 in mortgage funds available for the purchase. The remaining purchase price is $120,000: $800,000 minus $40,000 minus $640,000.

That $120,000 is not your final amount to bring to closing. Add the applicable land transfer tax, legal fee and HST, permitted disbursements and net closing adjustments. If the lender deducts a fee from its advance, the amount you provide may increase.

This illustration assumes the stated mortgage funds are available and excludes taxes, expenses and adjustments. It is not a quote. Use the land transfer tax calculator for a separate estimate, then rely on your lawyer’s final funding instructions.

Legal fees and permitted disbursements

Rindi Law’s starting legal fees are $1,249.99 for a purchase and $1,049.99 for a sale or refinance, plus HST and permitted disbursements. Your fee reflects the closing details and is confirmed in writing before you retain us.

Disbursements are specified expenses paid to others for the transaction. Examples include registration charges and title insurance. See the fees page for the permitted items and the distinction between expenses and closing funds.

Land transfer tax

An Ontario property purchase can attract provincial land transfer tax. A property within Toronto can also attract municipal land transfer tax. First-time buyer refunds depend on eligibility, not simply whether this is your first purchase in Ontario.

Use our calculator to explore an estimate. Transfers, exemptions, foreign buyer taxes and unusual ownership arrangements need individual review.

Adjustments between buyer and seller

The agreement and closing statement may allocate items such as prepaid property taxes or common expenses between the parties. These adjustments affect the funds required or proceeds received. Ask for an explanation of any entry you do not understand.

Costs to ask your lender and other professionals about

A mortgage payout may include a penalty. New financing can involve lender or broker charges. A sale can involve commission. Moving costs, property insurance and any inspections also need room in your budget.

For a new build or assignment, send the full agreement for advice on the additional adjustments and tax provisions that may apply. A resale budget is not a reliable substitute.

Get a quote, then a closing statement

The written quote explains the legal work and anticipated expenses. The closing statement accounts for the actual funds needed to complete your file. Share the agreement, financing and deadlines early so the team can identify the relevant items.