Toronto buyer guide
How much cash do I need to close on a home in Toronto?
Your down payment is only part of it. Toronto buyers pay land transfer tax twice, once to Ontario and once to the City, plus legal fees and a few costs most people miss. Here is the full list with a worked example.
By Spiro Vrysellas, Broker, Vrysellas Team, Elevate Realty Inc., Brokerage. Updated October 2026.
What you pay on closing day
- Down payment. Your deposit, usually around 5% in Toronto and paid within 24 hours of an accepted offer, counts toward it.
- Ontario land transfer tax. Paid on every purchase in the province.
- Toronto municipal land transfer tax. Paid on top of the Ontario tax when the home is inside the City of Toronto.
- Sales tax on mortgage insurance. If you put less than 20% down, the insurance premium is added to your mortgage, but Ontario's 8% sales tax on that premium must be paid in cash.
- Legal fees and title insurance. Usually $2,000 to $3,000 all in for a resale home.
- Adjustments. You repay the seller for property tax or condo fees they prepaid past closing.
- Home inspection, moving and setup. Budget a few thousand dollars.
Land transfer tax rates
| Portion of the price | Ontario | Toronto |
|---|---|---|
| Up to $55,000 | 0.5% | 0.5% |
| $55,000 to $250,000 | 1.0% | 1.0% |
| $250,000 to $400,000 | 1.5% | 1.5% |
| $400,000 to $2,000,000 | 2.0% | 2.0% |
| $2,000,000 to $3,000,000 | 2.5% | 2.5% |
| Over $3,000,000 | 2.5% | 4.4% to 8.6%, rising with price |
The rates apply to homes with one or two single-family residences. Toronto's higher rates over $3,000,000 took effect on April 1, 2026.
First-time buyer rebates
If you have never owned a home anywhere in the world, you can get up to $4,000 back on the Ontario tax and up to $4,475 back on the Toronto tax. That is up to $8,475 in total, usually applied by your lawyer on closing. You must move in within nine months. If your spouse owned a home while you were together, you do not qualify.
Worked example
A first-time buyer purchasing a $1,100,000 house in Toronto with 10% down and a 30-year amortization.
| Down payment (10%) | $110,000 |
| Ontario land transfer tax | $18,475 |
| Toronto land transfer tax | $18,475 |
| First-time buyer rebates | -$8,475 |
| Sales tax on mortgage insurance | $2,614 |
| Legal fees and title insurance | $2,500 |
| Home inspection | $600 |
| Adjustments | $1,000 |
| Moving | $2,000 |
| Cash needed to close | About $147,200 |
The $32,670 mortgage insurance premium itself is added to the mortgage, not paid in cash. If the same buyer were not a first-time buyer, the land transfer tax alone would be $36,950.
Frequently asked questions
Do I pay Toronto land transfer tax in Mississauga, Vaughan or Markham?
No. The municipal tax only applies inside the City of Toronto. You still pay the Ontario tax everywhere in the province.
Can land transfer tax be added to my mortgage?
No. It is paid in cash on closing, along with legal fees and the sales tax on mortgage insurance.
Do condos have different closing costs?
Resale condos are similar, with a status certificate review added to legal fees. New construction condos can add development charges and HST adjustments, so read the agreement closely.
How much should I keep after closing?
Lenders like to see some cash left over. A cushion of one to three months of housing costs is a sensible minimum.
More Toronto guides
How much mortgage you can qualify for Investment property cash flow and cap rate What you walk away with after sellingEstimates only. Rates and rebates are set by the Province of Ontario and the City of Toronto and can change. Confirm final figures with your lawyer. This is not legal or financial advice.