Closing Costs in Ontario: A Line-by-Line Breakdown

First-time buyers routinely under-budget closing costs by $5,000–$15,000. Here is exactly what hits at closing on a typical Ottawa home purchase, line by line.

Land transfer tax (provincial). The biggest line. On a $650,000 Ottawa home, roughly $9,475. First-time buyers get up to $4,000 back, claimed at closing through your lawyer. Ottawa has no municipal LTT.

Legal fees and disbursements. Expect $1,500–$2,500 total for a straightforward purchase. The breakdown: lawyer's professional fee ($900–$1,500), title insurance ($300–$500 for a typical home, more for higher values), title search and registration ($250–$400), software/courier/admin disbursements ($100–$250), and HST on the lawyer's fee. Always get a written quote that lists fees AND disbursements before retaining.

Home inspection. $450–$700 for a thorough inspection of a typical detached. Add $250–$400 for a sewer scope on older homes. Paid directly to the inspector at the time of inspection, not at closing.

Property tax adjustment. The seller pre-pays property tax to the City. At closing, you reimburse them for the portion of the year you'll own the home. On a $650,000 Ottawa home with annual property tax around $5,000, closing mid-year means roughly a $2,500 adjustment in the seller's favour.

Utility adjustments. Smaller amounts — water, hydro deposits if the utility requires them, and any prepaid gas or oil tank fill (oil in particular can be a $1,500+ surprise on rural homes).

PST on mortgage default insurance. If you're putting less than 20% down, CMHC insurance is added to your mortgage principal — but Ontario charges 8% PST on that insurance premium, due in cash at closing. On a $500,000 mortgage with a 5% down payment, that PST is roughly $1,200–$1,500.

Mortgage-related costs. Most lenders no longer charge appraisal fees on standard transactions, but expect $150–$350 if they do. Mortgage broker fees on prime mortgages are paid by the lender, not the borrower.

Moving costs and immediate setup. Movers ($800–$2,500 for a local move), utility transfers and setup deposits ($100–$400), locksmith for lock change ($150–$300), and initial home insurance prepayment.

Build a closing-costs reserve of 3%–4% of purchase price in cash, separate from your down payment. Use whatever's left for the first emergency repair.

More from the journal:

• Land transfer tax in Ontario
• Lawyers and closing day

Trusted outside sources:

• Ontario Land Transfer Tax
• Law Society of Ontario — Find a lawyer