Your down payment isn’t the only cash you need on closing day. Here is what to budget for in Ontario. Tax figures checked October 3, 2026.
1. Ontario land transfer tax
For a home with one or two single-family residences, the tax is charged in brackets:
- 0.5% on the first $55,000
- 1.0% from $55,000 to $250,000
- 1.5% from $250,000 to $400,000
- 2.0% from $400,000 to $2,000,000
- 2.5% above $2,000,000
Example: a $600,000 home. $275 + $1,950 + $2,250 + $4,000 = $8,475 in Ontario land transfer tax. An eligible first-time buyer gets up to $4,000 back, so the net tax would be $4,475.
Buying in the City of Toronto adds a municipal land transfer tax, with its own first-time buyer rebate of up to $4,475. The other cities on this site don’t charge one.
2. Other costs to plan for
- Legal fees and disbursements: your real estate lawyer handles title, registration and the funds. Get a written quote.
- Title insurance: usually arranged by your lawyer.
- Home inspection: paid before you firm up the deal, if your offer includes an inspection condition.
- Mortgage default insurance tax: with less than 20% down, Ontario charges provincial sales tax on the insurance premium. Unlike the premium, it can’t be added to the mortgage. Ask your lender for the exact amount.
- Adjustments: your share of property tax or condo fees the seller already paid.
- Moving, utilities set-up and home insurance.
3. Buying new? Check the GST/HST rebates
On a newly built home, a first-time buyer may qualify for the federal First-Time Home Buyers’ GST/HST rebate of up to $50,000, and Ontario’s Enhanced New Housing Rebate of up to $80,000 applies to agreements signed between April 1, 2026 and March 31, 2027. See the first-time buyer guide.
Sources (official pages, checked October 3, 2026)
- Ontario – Calculating land transfer tax (rate brackets, updated 2026-04-22)
- Ontario – Land transfer tax refunds for first-time homebuyers (max $4,000)
- City of Toronto – MLTT rebate opportunities (max $4,475)
- CRA – First-time home buyers’ GST/HST rebate (new homes, up to $50,000)
- CRA Notice 346 – Ontario Enhanced New Housing Rebate (up to $80,000)
Programs and limits change, often at budget time. Confirm the current rules on the official page before you rely on them.
Talk to me in English or Arabic: call or text (647) 465-3710, message me on WhatsApp, or email Mohieddinrealtor@gmail.com.
General information only – not financial, legal or mortgage advice. Please consult a licensed professional about your own situation.