Real Estate Closing Costs in Toronto

Land Transfer Tax

This is often the heftiest of these closing expenses. When buying a home in Toronto, you will end up paying TWO land transfer taxes. The first being Municipal and the second being Provincial. If you are outside of Toronto you will only have to pay the  provincial land transfer tax. 

Legal Fees

Expect to incur a minimum of $1000 in legal fees as part of your closing costs. This will account for the preparation and recording of official mortgage documents.

Title Insurance

Today, most lenders require title insurance to protect against losses in the event of a property ownership dispute.


Mortgage default insurance, or CMHC insurance, is traditionally added to the total mortgage. However, Provincial Sales Tax (PST) on the insurance must be paid in cash at the time of close. In Toronto and the rest of Ontario, the rate is 8% of the CMHC insurance premium. 

Property Insurance

This insurance covers the cost of replacing your home and its contents, similar to renters insurance in many condos in Toronto. This policy must also be active as of closing day.