Costs & Process
Closing Costs and Land Transfer Tax When Buying in the GTA
The sticker price is not the whole cost of buying. Understanding closing costs — especially land transfer tax — helps you budget accurately and avoid surprises near closing.
Updated
Land transfer tax in Ontario and Toronto
Every buyer in Ontario pays provincial land transfer tax, calculated on a sliding scale against the purchase price. Buyers of property within the City of Toronto pay a second, municipal land transfer tax of a similar magnitude — so a Toronto purchase carries land transfer tax twice over, which materially increases closing costs at the luxury end.
Exact rates, brackets, and any additional levies change over time and can include higher marginal rates on high-value residential property. Always confirm the current figures with your real estate lawyer before closing.
Legal fees, title insurance, and adjustments
A real estate lawyer handles the closing; their fee plus disbursements is a standard cost. Title insurance is typically purchased once at closing. Adjustments reconcile prepaid property taxes, utilities, and (for condominiums) common expenses between buyer and seller as of the closing date.
First-time buyer rebates
Qualifying first-time buyers may receive rebates against both the Ontario and Toronto land transfer tax, up to set maximums. Eligibility rules apply; your lawyer can confirm whether you qualify and how the rebate is applied.
Frequently asked questions
- Do you pay land transfer tax twice in Toronto?
- Effectively yes. Buyers of property in the City of Toronto pay both the Ontario (provincial) land transfer tax and the Toronto (municipal) land transfer tax, calculated separately on the purchase price. Properties elsewhere in the GTA outside Toronto pay only the provincial tax.
- How much are closing costs when buying a home in the GTA?
- Closing costs are commonly a few percent of the purchase price, driven mainly by land transfer tax (doubled within Toronto), plus legal fees, title insurance, and adjustments. On luxury purchases the land transfer tax component can be significant, so budget for it early and confirm current rates with your lawyer.
- Are first-time home buyers exempt from land transfer tax in Ontario?
- Not fully exempt, but qualifying first-time buyers can receive rebates against both the Ontario and Toronto land transfer tax up to set limits, reducing or eliminating the tax on lower-priced homes. On luxury purchases the rebate offsets only part of the total.