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Closing costs in Toronto

See how much you might have to pay in closing costs when you buy a home in Canada's largest city.

The average closing cost in Toronto is roughly $35,000 after taxes or approximately 4-6% of the final home sale price.

Closing cost stats in Toronto

  • Average home sale price. $770,000-$820,000
  • Average total closing cost.$35,000*
  • Expected closing cost range. $30,800-$49,200*
  • Percentage of closing cost to home sale price. 4-6%

Remember, these averages are based on sample data. Your closing costs may vary based on your lender, the size of your loan and whether you’re paying in cash.

Compare mortgage lenders in Ontario

1 - 4 of 4
Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
CASHBACK
nesto Mortgages
4.54%
5 Year Fixed Rate
680
All of Canada
Get 1% cashback on your mortgage value (up to a total cashback of $9,250).
BMO Mortgages
6.49%
5 Year Fixed Rate
Varies
All of Canada
Lock in a rate for up to 130 days - the longest of any major bank in Canada.
Meridian Mortgages
6.29%
5 Year Fixed Closed Rate
600
ON
Meridian is a credit union that provides Ontario residents featured rates and the option to defer one payment every 12 months without penalty.
Homewise Mortgages
Varies
Varies
600
Not available in Quebec
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.
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How much does tax affect the closing cost?

Buyers in Toronto (Greater Toronto Area) are unlucky in that they have to pay two separate land transfer taxes. Both are sliding scale tax rates and are identical to each other with the only difference being that one is paid to the province of Ontario (provincial), while the other is paid to the city of Toronto (municipal). Thus, if you are buying a property within the GTA, you will pay twice as much in land transfer taxes as you would if you bought a property outside of the GTA.

On top of this, property buyers in the Greater Golden Horseshoe area (different municipalities encompassing this region in Ontario) will also have to pay an extra 15% tax if they are a foreign national. This Foreign-Buyers Tax of 15% is applicable on the sale price of residential properties in this Greater Golden Horseshoe region and will significantly drive up closing costs.

Here is how the sliding scale tax rates work for both the provincial and municipal land transfer tax rate.

  • $0-$55,000: 0.5%
  • $55,000-$250,000: 1%
  • $250,000-$400,000: 1.5%
  • $400,000-$2,000,000: 2%
  • $2,000,000+: 2.5%

For example, on the sale of a property valued at $800,000, you would be charged 0.5% on the first $55,000, 1% on the next $195,000, 1.5% on the next $150,000 and finally 2% on the last $400,000 for a combined total of $12,475. Multiply this by two because you have to pay both the provincial and municipal land transfer tax rates and you’ll end up with a total of $24,950 in land transfer taxes.

If you are a foreign national, on this same $800,000 property, you will have to pay a 15% Foreign-Buyers Tax, which will amount to $120,000. On top of the land transfer taxes you have to pay, this will bring your closing costs to $144,950.

*Harmonized Sales Tax (HST)

By virtue of being in the province of Ontario, Toronto has a Harmonized Sales Tax (HST), which is essentially a combination of the GST (5%) and PST (8%). Thus, the HST rate is 13%, but it is not charged in all circumstances. In Toronto, the HST is only payable on the sale of brand new properties or properties that have been substantially renovated.

Is there an HST rebate?

Yes, there is a rebate available to homebuyers in Toronto. If you purchase a brand new home with a sale price of $350,000 or less, you are eligible to receive a 75% rebate on the PST portion (8%) of the HST (anything more than $450,000 and you will not be available for a PST rebate) and a 36% rebate on the GST portion (5%) of the HST.

For example, if you bought a brand new house valued at $350,000, you would need to pay a total of $45,500 in HST (13%). The HST you would need to pay can be broken down to $28,000 for the PST (8%) and $17,500 for the GST (5%). On the PST portion of the HST, you are eligible for a rebate of $21,000 (75% of $28,000) while on the GST portion of the HST, you are eligible for a rebate of $6,300 (36% of $17,500). Combine both totals and you should earn back a rebate of $27,300 on the $350,000 property.

How do closing costs in Toronto compare with the rest of Canada?

Toronto has one of the highest average housing costs in Canada and the closing costs for buying a home in Toronto are some of the highest in Canada. Unfortunately, buying a house in Toronto (GTA) will incur you two separate land transfer tax payments as well as 13% HST if you are buying a new home. Combine these two together and these can significantly drive up the closing costs.

Bottom Line

Closing costs are inevitable when you’re buying or selling a property. The exact amount will vary depending on what the final sale price is on your property in Toronto. It is safe to budget at least 4-6% of the final home sale price to closing costs as most of it will be going to the multiple land transfer taxes you must pay when purchasing a home in the GTA. In cases where you buy a brand new property, you will have to pay HST and this can raise your closing costs as high as 17-19% (not taking into account the rebate).

If you’re a foreign national buying property in Toronto, you will be charged an extra 15% on the price of the property and this will significantly elevate your closing costs.

Want to learn more about mortgages? Head to our guide here.

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