Your down payment isn't the only cash you need on closing day. In Ontario, closing costs usually add 1.5% to 4% of the purchase price on top. On a $900,000 home in Brampton, that's roughly $18,000 to $20,000 before adjustments. Here's every line item, what it typically costs in 2026, and a worked example so nothing catches you off guard.
Want your own number? Tell me the price and your down payment and I'll run your real closing costs.
The Closing Costs Every Ontario Buyer Pays
1. Land transfer tax (the big one)
This is usually your largest closing cost. Ontario charges it on every purchase, on a sliding scale from 0.5% to 2.5%. On a $900,000 home it's $14,475. Buy in the City of Toronto and you pay a second, municipal tax of about the same amount.
First-time buyers can get up to $4,000 back from Ontario (and up to $4,475 more in Toronto). We break down the full math in our Brampton vs Toronto land transfer tax guide.
2. Legal fees: about $1,200 to $2,000
You need a real estate lawyer to close. They search the title, register the home in your name, handle the money and pay the land transfer tax for you. Most quote a flat fee plus HST and disbursements (searches, registration fees). Always ask for the all-in number.
3. Title insurance: about $250 to $800
Title insurance protects you against problems like title fraud, survey issues or old work orders. It's a one-time payment, and most lenders require it.
4. Home inspection: about $400 to $600
Not required, but skipping it is a gamble. In a slower market like this fall, most sellers accept an inspection condition. Use it.
5. PST on mortgage default insurance
If you put down less than 20%, your mortgage needs default insurance (CMHC or a private insurer). The premium gets added to your mortgage. But Ontario charges 8% PST on that premium, and the PST can't be added to the mortgage. You pay it in cash on closing.
Example: $900,000 home, 10% down. Your mortgage is $810,000. The insurance premium at 3.10% is $25,110. The PST you pay in cash is about $2,009. A lot of buyers don't see this one coming.
6. Adjustments: property tax, utilities, fuel
If the seller already paid property tax or a utility bill past your closing date, you pay them back for your share. These are called adjustments. They depend on the time of year, but they can add a few hundred to a couple of thousand dollars. Your lawyer shows the exact number on the statement of adjustments a few days before closing.
Worked Example: $900,000 Home in Brampton, 10% Down
| Item | Estimate |
|---|---|
| Ontario land transfer tax | $14,475 |
| Legal fees | $1,200 – $2,000 |
| Title insurance | $250 – $800 |
| Home inspection | $400 – $600 |
| PST on mortgage insurance | ~$2,009 |
| Total before adjustments | ~$18,300 – $19,900 |
A first-time buyer who gets the full $4,000 land transfer tax refund would be closer to $14,300 to $15,900.
So the real cash needed here is the $90,000 down payment plus about $18,000 to $20,000. Most people only plan for the first number.
Buying New Construction? Budget for These Too
Pre-construction homes have their own closing costs. They show up in the builder's agreement, usually in a schedule of adjustments. Common ones include:
- Tarion warranty enrolment fee
- Utility meter and hookup charges
- Development charge or levy increases since you signed
- Tree planting, driveway paving or grading fees
Some builders cap these. Many don't. Before you sign, have your lawyer read the adjustments schedule and ask the builder for a cap.
There's also good news on new builds. Ontario and the federal government have announced HST relief of up to $130,000 for buyers who sign a new-home agreement between April 1, 2026 and March 31, 2027 and live in it as their main home. The federal part depends on legislation, so confirm the details with your lawyer before you count on it.
Frequently Asked Questions
How much should I budget for closing costs in Ontario?
Plan for 1.5% to 4% of the purchase price. Land transfer tax is usually most of it. On a $900,000 Brampton home, expect about $18,000 to $20,000 before adjustments.
Can closing costs be added to my mortgage?
Most can't. Land transfer tax, legal fees and the PST on mortgage insurance are paid in cash on closing. Your lender will want to see you have this money saved.
Who pays closing costs, the buyer or the seller?
The buyer pays the costs above. Sellers have their own costs, like real estate commission and paying off their mortgage.
Are closing costs higher on a new-build home?
Often, yes. On top of the usual costs, builders can charge adjustments for things like Tarion enrolment, utility hookups and development charges. Ask for a cap before you sign.
Know Your Number Before You Shop
The easiest way to avoid a closing-day shock is to know your full cash number before you book a showing. Send me your price range and down payment. I'll send back a closing cost breakdown for Brampton, Mississauga or Caledon so you can decide on your own.
Figures are typical 2026 ranges and estimates only, based on Ontario land transfer tax rates and published industry ranges as of September 2026. Mortgage insurance premium based on 10% down at the standard 3.10% rate. Confirm exact costs with your lawyer, lender and insurer. Team Platinum, Royal LePage Platinum Realty, Brokerage.
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