Home Buyer Closing Costs in Ontario

Costs when buying home involve one-time costs and not to mention monthly expenses. There is also something called home buyer closing costs in Ontario. The largest one-time cost is definitely the down payment. It usually represents between 5-25% of the total price of the property. Typically closing costs can be around 2 % of the purchase price. I will try to list out all the home buyer closing cost below but if you have any questions please feel free to contact me and I will explain these in detail.

Down Payment

5% or more, in some cases a 10% minimum down payment is required depending on the Buyers employment, income and credit history. If you put down 20% you will then avoids the Mortgage Insurance Fee, commonly known as a CMHC Fee.

Other additional costs to consider:

Processing a Mortgage Apprasial & Application Fee $350 to $500 approx. For lender purposes & CMHC insurance.
Mortgages Life Insurance This is usually optional, I also have a blog on Life Insurance vs Mortgage Insurance.
Buyer Incentives  

  • Down Payment: 5% down or more for Buyers.
  • RRSP: Can be used for Down Payment, up to $25,000 for each individual involved in the purchase.
Home Inspection $400.00-800.00 (approx). Highly recommended for both resale and new construction.
Legal Fees Disbursements
  • May vary ($750 and up)
  • Sub-Search of Title
  • Water & Sewage Certificate
  • Status Certificate
  • Register the Deed
  • Title Insurance
  • Title Search
  • Tax Certificate
  • Hydro Certificate
  • Register the Mortgage
  • Plus standard office disbursements including, photocopies, postage, courier services, fax charges (as applicable).
Statement of Adjustments Given to the Buyer upon Closing
This is a summary of all costs and expenses paid by the Buyer(s) and will be provided to the Buyer(s) upon closing.
Land Transfer Tax Applies to all transfers of land in Ontario.
First-time homebuyers may be eligible for a refund of all or part of the tax. For transfers where:

    • the agreement of purchase and sale was entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.
    • if one enters agreement of purchase and sale before December 14, 2007, the refund only applies on the purchase of a newly constructed home.

One can apply for a refund within 18 months after the date of the transfer.

Survey NOTE: A survey is not transferable and belongs to the individual who paid for the survey. You cannot rely on the accuracy of the information unless you ordered and paid for the survey. One can use copies of survey’s received from Sellers, only for re-finance purposes.
Title Insurance $280 to $600(approx). If there is no Survey, title insurance will satisfy the Lender and you will not have to incur the cost of a new survey. Title insurance is a must on all Real Property Purchases.


Closing Costs when buying home quoted here are approximate. Your lawyer will give you exact costs. Please feel free to ask me any questions you may have since closing cost is an essential part of a real estate transaction that every buyer needs to be aware.

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  1. Jawaid Siddiqui November 8, 2020 at 8:49 am - Reply


    I am a foreigner, and now buying a small business in Ottawa, which will be transferred in my name in next 6 months time. I have my personal bank account in TD Bank in Ottawa and want to know if i can book a new under construction house in Ottawa, make a down payment of x% from bank account and then take possession of that house when i reach there in 6 months time.
    I would appreciate if you could adddress the above please.

  2. Morgan yyc December 9, 2019 at 6:51 am - Reply

    I did not know that there was a thing called as a home buyer closing costs as no one had told me before. I think it would have been a better idea to hire a realtor to do the dealings for me.

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