Buying a Home in Ontario: Complete Cost Breakdown (2026)
A first-time buyer with 10% down on a $700,000 Ontario home needs $82,700: $70,000 down, $6,475 land transfer tax after refund, $1,562 PST on CMHC, plus fees.
Beyond the down payment, an Ontario buyer pays land transfer tax (the largest line: $10,475 on $700,000, less a $4,000 refund for first-time buyers), 8% Ontario PST on the mortgage insurance premium if the down payment is under 20%, legal fees, title insurance, an inspection, an appraisal and a property tax adjustment. In Toronto the land transfer tax doubles. A first-time buyer with 10% down on a $700,000 home in Ottawa needs about $82,000 in cash; the same buyer in Toronto needs about $88,000.
Figures come from the CostToClose guided buying flow.
Cash on closing: $700,000, 10% down, first-time buyer
| Item | Ottawa | Toronto | Rule or estimate |
|---|---|---|---|
| Down payment | $70,000 | $70,000 | — |
| Ontario land transfer tax | $10,475 | $10,475 | Rule |
| Toronto municipal land transfer tax | — | $10,475 | Rule |
| Ontario first-time buyer refund | −$4,000 | −$4,000 | Rule |
| Toronto first-time buyer rebate | — | −$4,475 | Rule |
| CMHC premium (3.10% of $630,000) | $19,530, added to mortgage | same | Rule |
| Ontario PST on premium (8%) | $1,562 | $1,562 | Rule |
| Legal fees and disbursements | $1,800 | $1,800 | Estimate |
| Title insurance | $425 | $425 | Estimate |
| Home inspection | $550 | $550 | Estimate |
| Appraisal | $400 | $400 | Estimate |
| Property tax adjustment | $780 | $780 | Estimate |
| Closing costs | $11,992 | $17,992 | |
| Total cash needed | $81,992 | $87,992 |
This example was computed with the CostToClose calculator, 14 September 2026. A repeat buyer adds back $4,000 in Ottawa and $8,475 in Toronto. Reproduce this.
The two lines buyers miss
PST on the CMHC premium
The premium itself is added to the mortgage. The 8% Ontario retail sales tax on it is not; it is due in cash at closing. On a $19,530 premium that is $1,562, and it shows up on the lawyer's statement a week before closing, which catches people off guard.
Toronto's municipal land transfer tax
Inside the City of Toronto (including Scarborough, Etobicoke and North York) a second tax equal to the provincial one applies, with steeper rates above $3 million since April 2026. Mississauga, Vaughan and Markham are outside. See Why Toronto buyers pay twice.
Monthly costs after closing
Same purchase, 4.49% five-year fixed, 25 years:
| Item | Ottawa | Toronto |
|---|---|---|
| Mortgage payment on $649,530 | $3,591 | $3,591 |
| Property tax (estimate: Ottawa ~1.1%, Toronto ~0.7% of value) | ≈ $640 | ≈ $410 |
| Home insurance (estimate) | ≈ $130 | ≈ $130 |
| Heat and utilities (estimate) | ≈ $210 | ≈ $210 |
| Total | ≈ $4,570 | ≈ $4,340 |
Toronto's lower tax rate partly offsets its higher closing costs over time; on this house the difference is about $230 a month.
What is different about Ontario
- Land transfer tax on marginal brackets from 0.5% to 2.5%, with a $4,000 first-time refund. See Ontario land transfer tax explained.
- The only province with a municipal transfer tax (Toronto).
- 13% HST on new construction, less the federal rebate (up to $6,300 on homes under $450,000), the Ontario rebate (up to $24,000), and for first-time buyers the new federal rebate of the full 5% GST on homes up to $1 million. Ontario's matching enhancement is now law (CRA form RC7190-ON): an 8% provincial rebate up to $80,000 plus a 5% top-up up to $50,000 for agreements signed between April 2026 and March 2027.
- Tarion warranty enrolment on new homes, paid by the builder but usually passed through in the purchase agreement.
- Non-resident speculation tax of 25% province-wide for foreign buyers, on top of the federal ban.
What changes the number
- 20% down removes the premium and its PST; cash needed rises to about $150,430 in Ottawa.
- Crossing the Toronto boundary: $10,475 at this price.
- Price above $2 million: the 2.5% band applies.
- Condo: replace the inspection with a status certificate ($110) and expect a condo fee adjustment.
Frequently asked questions
How much are closing costs on a $700,000 house in Ontario?
About $12,000 for a first-time buyer with 10% down outside Toronto, or $16,000 for a repeat buyer. Add $6,000 to $10,500 inside Toronto for the municipal tax.
Is PST charged on mortgage insurance in Ontario?
Yes. Ontario applies 8% retail sales tax to the CMHC, Sagen or Canada Guaranty premium, payable in cash at closing.
Does the Ontario first-time buyer rebate apply in Toronto?
Yes, and Toronto adds its own rebate of up to $4,475 on the municipal tax, for a combined $8,475.
How much do I need to save to buy a house in Ontario?
The down payment plus roughly 2% to 2.5% of the price for closing costs outside Toronto, or 3% to 4% inside. Lenders also want to see closing costs of at least 1.5% in your account before approval.
Are closing costs different for a new build in Ontario?
Yes: HST applies (usually built into the price with rebates assigned to the builder), plus Tarion enrolment and development-charge adjustments spelled out in the agreement. Ask the builder for the total of "adjustments on closing" before signing.
Sources
- Ontario Ministry of Finance, Land Transfer Tax and first-time homebuyer refund — checked 14 Sept 2026
- City of Toronto, Municipal Land Transfer Tax — checked 14 Sept 2026
- Ontario Ministry of Finance, Retail Sales Tax on insurance premiums — checked 14 Sept 2026
- CMHC, mortgage loan insurance premiums — checked 14 Sept 2026
- Department of Finance Canada, First-Time Home Buyers' GST Rebate; Ontario Ministry of Finance, HST new housing rebate — checked 14 Sept 2026
- City of Ottawa and City of Toronto, property tax rates — checked 14 Sept 2026
This guide gives general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.