Closing Costs & Land Transfer Tax
What buyers pay on closing day in Burlington and Hamilton, with a calculator for your own numbers
What you pay
on closing day
On top of your down payment, buyers in Burlington and Hamilton pay Ontario land transfer tax, legal fees and disbursements, title insurance and the adjustments your lawyer works out for closing day. If you put less than 20% down, there is also a provincial sales tax on your mortgage insurance premium, due in cash.
Land transfer tax is usually the largest of these. Burlington and Hamilton have no municipal land transfer tax: in Ontario, only Toronto charges one. First-time buyers can get up to $4,000 of the Ontario tax refunded.
The calculator below uses your own numbers. Nothing you type is sent anywhere.
Your cash
for closing
- Ontario land transfer tax
- —
- First-time buyer refund
- —
- Tax on mortgage insurance (8%)
- —
- Legal fees and title insurance
- —
- Other costs
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- Closing costs
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- Down payment
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Enter a purchase price to see the estimate.
The mortgage insurance premium itself is added to your mortgage, so it is not in the cash total; the calculator assumes a 25-year amortization, and your lender confirms the exact premium. An estimate for a home with one or two residences, before the adjustments your lawyer settles on closing day.
How Ontario
calculates it
The tax is charged in slices of the price, like income tax. These are the Ontario rates for agreements signed after November 14, 2016:
| Part of the price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| Over $400,000 | 2.0% |
| Over $2,000,000 | 2.5%, where the property has one or two single family residences |
A condominium unit counts as a single family residence. Here is what that works out to at common prices:
| Purchase price | Ontario land transfer tax | First-time buyer pays |
|---|---|---|
| $500,000 | $6,475 | $2,475 |
| $700,000 | $10,475 | $6,475 |
| $850,000 | $13,475 | $9,475 |
| $1,000,000 | $16,475 | $12,475 |
| $1,500,000 | $26,475 | $22,475 |
The tax is worked out on the value of the consideration, which is usually the purchase price. On a new home bought from a builder, HST is not part of that value, but upgrades and some other costs in the agreement can be.
If you are moving from Toronto, you will notice the difference: buying in Toronto adds a second, municipal land transfer tax. Buying in Burlington, Hamilton or Oakville does not. See moving from Toronto to Burlington.
The $4,000
refund
First-time buyers can have up to $4,000 of the Ontario tax refunded, so there is no tax on the first $368,000 of the price. It applies to resale and new homes, including condos and townhouses. To qualify, under Ontario’s rules:
- You are at least 18.
- You have never owned a home, or an interest in one, anywhere in the world.
- If you have a spouse, they have not owned a home while they were your spouse.
- You are a Canadian citizen or permanent resident. If you are not yet, you have 18 months after closing to become one and apply.
- You move in as your principal residence within nine months of closing.
Your lawyer usually claims the refund when the transfer is registered, so it comes off what you pay on closing day. If it is not claimed then, you pay the full tax and apply to the Ministry of Finance within 18 months.
Buying with someone who has owned before, such as a parent? The refund is reduced in proportion to their share. And these rules are Ontario’s own, so qualifying for the federal Home Buyers’ Plan does not mean you qualify here. Our first-time buyer guide covers the other programs.
Every other
closing cost
| Cost | What to know |
|---|---|
| Legal fees | Your real estate lawyer searches title, registers the transfer and mortgage, pays the land transfer tax and prepares the statement of adjustments. Most quote a flat fee plus disbursements. Ask for an all-in quote early. |
| Title insurance | Usually arranged by your lawyer and often required by your lender. It is a one-time premium paid at closing. |
| Mortgage insurance | With less than 20% down, your mortgage must be insured. CMHC’s premiums are 4.00% of the loan with 5% to 9.99% down, 3.10% with 10% to 14.99%, and 2.80% with 15% to 19.99%. The premium is added to your mortgage. In Ontario the premium also carries 8% retail sales tax, which cannot be added to the loan and is due in cash. |
| Statement of adjustments | Your lawyer settles costs split by date. If the seller has prepaid property tax or condo fees past closing day, you credit them for it. |
| Home inspection and appraisal | Paid before closing, usually during the conditional period. Your lender may require an appraisal. |
| Home insurance | Your lender will want proof of coverage before it releases the mortgage funds. |
| Condo status certificate | On a resale condo, the certificate shows the building’s fees, reserve fund and rules. Have your lawyer review it before you firm up. See our condo guide. |
| HST | An ordinary resale home is generally exempt from HST on the price. On a new home, HST is normally included in the builder’s price, and builders’ agreements often add closing adjustments, so read them with your lawyer before you sign. See HST on a new build. |
| Moving and set-up | Movers, utility connections and anything the home needs on day one. |
A $700,000
first home
Say you buy a $700,000 home as a first-time buyer with the minimum down payment of $45,000: 5% of the first $500,000 plus 10% of the remaining $200,000.
- Ontario land transfer tax is $10,475. After the $4,000 refund you pay $6,475.
- The mortgage is $655,000. A 4.00% insurance premium, $26,200, is added to it.
- The 8% sales tax on that premium, $2,096, is due in cash.
- Add your lawyer’s quote, title insurance, inspection and moving.
So before legal fees and the rest, that buyer needs $45,000 for the down payment plus $8,571 in tax by closing day.
If you are not
a Canadian citizen
Ontario charges a Non-Resident Speculation Tax of 25% on residential property anywhere in the province, on top of the regular land transfer tax, when any buyer is a foreign national or foreign corporation. Permanent residents do not pay it.
A separate federal ban on most purchases by non-Canadians is scheduled to end on January 1, 2027. Read what the end of the foreign buyer ban means, and talk to your lawyer before you sign anything.
Budgeting
for closing
Keep closing costs separate from your down payment. Both have to be in place by closing day, and the tax on mortgage insurance has to come from your own funds.
Get your lawyer’s quote before you make an offer. Then you know your real number, not just the price.
Run the monthly side too. Our mortgage calculator adds property tax, condo fees and heat to the payment.
Closing costs FAQ
Who pays land transfer tax in Ontario?
The buyer. Ontario land transfer tax is paid by the person acquiring the property, and it is due when the transfer is registered on closing day. Your lawyer collects it from you before closing.
Is there a municipal land transfer tax in Burlington or Hamilton?
No. In Ontario only Toronto charges a municipal land transfer tax. Buyers in Burlington, Hamilton and Oakville pay the Ontario tax only.
How much is land transfer tax on an $850,000 home?
$13,475. A buyer who qualifies for the full first-time homebuyer refund of $4,000 pays $9,475.
Does the first-time buyer refund apply to resale homes?
Yes. For agreements signed after December 13, 2007, it applies to resale homes and new homes alike. You must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and move in within nine months. Your lawyer usually claims it when the transfer is registered.
Can I add closing costs to my mortgage?
Plan to pay them from your own savings. The provincial sales tax on a mortgage insurance premium cannot be added to the loan, and land transfer tax, legal fees and adjustments are paid on or before closing day. Ask your lender how it treats your situation.
General information, not tax, legal or financial advice. Your lawyer and lender should confirm what applies to you. Tax rates and refund rules from ontario.ca; mortgage insurance premiums from CMHC.
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