If you’re thinking about buying a home in Ontario, you’re probably focused on the big number — the down payment. But what often catches buyers off guard are the closing costs — the additional expenses you’ll need to cover before getting the keys.
These surprise fees can add up fast, and if you’re not prepared, they can turn an exciting experience into a stressful one. Let’s break it all down so you know exactly how much cash you’ll need to close with confidence.
Wondering what types of houses are available in Guelph or the Tri-Cities? Find out in our featured listings.
What Are Closing Costs?💰
In Ontario, closing costs typically range between 2% to 4% of the home’s purchase price.
So for a $700,000 home, you should expect to pay anywhere from $14,000 to $28,000 in additional costs — on top of your down payment, which would be a minimum of around $45,000 (if you’re putting 5% down).
Why buy a home in Guelph or one of the surrounding communities? The posts below might be enough to convince you:
- 5 Reasons to Make Guelph Your Next Home
- What Are the Best Guelph Neighbourhoods for Families
- Palmerston, Ontario: Why We Love It
Complete List of Closing Costs in Ontario
Here’s a line-by-line breakdown of common closing costs every homebuyer should budget for:
1. Land Transfer Tax
This is the largest closing cost in most cases. Ontario uses a tiered tax system based on your purchase price:
- 0.5% on the first $55,000
- 1.0% on the next $55,000 to $250,000
- 1.5% on $250,000 to $400,000
- 2.0% on $400,000 to $2,000,000
- 2.5% on amounts over $2,000,000
For a $700,000 home, your total land transfer tax would be approximately $10,475.
💡 If you’re buying in Toronto, double this number — they charge a municipal land transfer tax as well.
First-time buyer? You could qualify for a rebate of up to $4,000, which covers land transfer taxes on the first $368,000 of your purchase.
2. Legal Fees & Disbursements
You’ll need a lawyer to finalize the transaction, handle title transfer, and register your mortgage.
- Typical cost: $1,500 – $2,000
3. Title Insurance
A one-time cost that protects against title fraud, boundary issues, or problems with past renovations.
- Typical cost: $300 – $800
When you buy with GoWylde, we’ll cover up to $400 toward your owner’s title insurance policy at closing. It’s one less thing to worry about as you begin your next chapter.
4. Home Inspection (Optional but Recommended)
Especially important for older homes or first-time buyers. A good inspector can save you thousands.
- Typical cost: $400 – $650
5. Appraisal Fee
Required by most lenders to verify the home’s value.
- Typical cost: $300 – $500
Some lenders will cover this, but always ask in advance.
Looking for more tips when buying a house? The posts below can help you with a successful transaction:
6. CMHC Insurance (for less than 20% down)
If your down payment is under 20%, mortgage default insurance is mandatory.
- The premium is added to your mortgage, but the HST must be paid at closing.
- Typical HST cost: $1,000 – $2,000
7. Closing Adjustments
You may need to reimburse the seller for prepaid property taxes, utilities, or propane (for rural homes).
- Typical cost: $300 – $1,000+
Can be higher for rural properties (e.g., full propane tank reimbursement).
8. Moving Costs & Utility Hookups
These vary widely depending on your situation.
- Moving: $1,000 – $10,000+
- Utility connections: $100 – $300
- Immediate repairs or furniture: Varies
Sample Budget: $700,000 Home in Ontario
| Cost | Estimated Amount |
|---|---|
| Land Transfer Tax | $10,475 |
| Legal Fees & Title Insurance | $1,750 – $2,500 |
| Home Inspection | $500 |
| Appraisal Fee | $400 |
| CMHC HST (if <20% down) | $1,500 |
| Adjustments & Misc. | $500 – $1,000 |
| Estimated Closing Costs | $14,000 – $28,000 |
How to Avoid Surprises on Closing Day ✅
- Budget 2% to 4% of your home’s purchase price for closing costs
- Ask your lawyer for a personalised quote early on
- Use online calculators (like Ratehub’s Land Transfer Tax Calculator)
- Apply for first-time buyer rebates
- Leverage your agent’s network for trusted inspectors, lawyers, and movers
Final Tip
If you’re a first-time buyer or new to the process, one of the best things you can do is sit down with your agent and have them build a customised closing budget based on your purchase price, location, and financing. It’s the smartest way to avoid surprises — and feel confident on closing day.
Are you ready to begin your search? Our top Guelph real estate agents are happy to help you find the right home. Reach out today at info@gowylde.ca or call 519-826-7109 for more information
