OTTAWA REAL ESTATE
Closing Costs in Ontario (2026): What Buyers and Sellers Pay
Closing Costs in Ontario: What Ottawa Buyers and Sellers Actually Pay
Last updated: September 2026
Closing costs in Ontario usually add 1.5% to 4% of the purchase price for buyers, mainly provincial land transfer tax, legal fees, title insurance and closing-day adjustments. On a $600,000 Ottawa resale home with 20% down, most buyers should budget about $11,000 to $13,000 in cash on top of the down payment.
Sellers pay no land transfer tax. Their closing costs are mostly real estate commission plus HST, legal fees, and any mortgage discharge fee or prepayment penalty. This guide covers both sides, with worked Ottawa examples, so the numbers on closing day match the numbers in your plan.
After 15+ years helping hundreds of buyers and sellers across Kanata, Stittsville, Barrhaven and the rest of Ottawa, the pattern I see most is not a missing $500. It is a buyer who planned the down payment to the dollar and forgot the cash that has to sit beside it.
What Are Closing Costs for Buyers in Ontario?
Closing costs for buyers are the taxes, legal fees, insurance and adjustments you pay to transfer the home and register your mortgage, separate from the down payment. Resale homes sit near the low end of the 1.5% to 4% range. New construction and insured mortgages push toward the high end.
| Cost | Typical amount (Ottawa, 2026) |
|---|---|
| Ontario land transfer tax | Sliding scale; $8,475 on $600,000 |
| Legal fees and disbursements | $1,500–$2,500 plus HST and disbursements |
| Title insurance | About $300–$500, one-time |
| Home inspection | $400–$700 |
| Appraisal (if the lender charges it) | $300–$500 |
| Survey (only if needed) | $1,000–$2,500 |
| Sales tax on mortgage default insurance | 8% of the premium, paid in cash |
| Condo status certificate | Up to $100 including taxes |
| Property tax and utility adjustments | Depends on closing date |
| Moving, hook-ups and deposits | Varies |
Ottawa buyers do not pay a municipal land transfer tax. That second tax applies only in Toronto, which is one reason closing costs here run well below Toronto for the same price. For a wider view that includes moving and first-year ownership costs, see the total cost to buy a house in Ottawa and the hidden costs of buying a home in Ontario.
How Much Is Land Transfer Tax in Ottawa?
Land transfer tax in Ottawa is Ontario’s provincial tax only: $8,475 on a $600,000 home and $13,475 on an $850,000 home. The rate climbs in steps from 0.5% to 2% up to $2 million, and the province publishes the exact brackets in its guide to calculating land transfer tax. You can run your own price through the Ottawa land transfer tax calculator.
First-time buyers can claim a refund of up to $4,000. To qualify, you cannot have owned a home anywhere in the world, your spouse cannot have owned one while you were together, and you must move in within nine months. The rules and the 18-month application window are on Ontario’s page for land transfer tax refunds for first-time homebuyers.
Here is how that plays out on a first condo. On a $450,000 purchase the tax is $5,475, the refund takes off $4,000, and the buyer pays $1,475. Your lawyer usually claims the refund at registration, so it comes off closing-day cash rather than arriving later.
Worked Example: Closing Costs on a $600,000 Ottawa Home
With 20% down, a $600,000 Ottawa resale home typically needs about $11,000 to $13,000 in closing costs. That is land transfer tax of $8,475, legal fees of roughly $1,700 to $2,800 once HST is added, title insurance of $300 to $500, an inspection of $400 to $700, and an appraisal of up to $500 if your lender charges for it.
Property tax and utility adjustments come on top, and they depend on your closing date. So do moving costs and utility deposits.
The same home bought with the minimum down payment changes the picture. The minimum is 5% of the first $500,000 and 10% of the portion above it, or $35,000, as explained in the Financial Consumer Agency of Canada’s down payment rules. The mortgage is $565,000, so default insurance is required.
At that loan size the premium on CMHC’s premium chart is 4.00%, or $22,600, which can be added to the mortgage. The 8% sales tax on that premium, $1,808, cannot be added and must be paid in cash at closing. Use the Ottawa mortgage calculator to see the monthly effect.
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Legal Fees and Title Insurance
Real estate legal fees in Ottawa usually run $1,500 to $2,500 plus HST and disbursements. The lawyer searches title, registers the transfer and your mortgage, calculates the adjustments, and moves the money on closing day. Every Ontario lawyer is licensed by the Law Society, which offers a directory to find a lawyer.
Title insurance is a one-time premium, usually $300 to $500, and most lenders require it. It protects against title defects, survey problems and title fraud, which the Financial Consumer Agency of Canada covers in its guide to avoiding real estate fraud.
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Inspection, Appraisal and Survey Costs
Budget $400 to $700 for a home inspection, $300 to $500 for an appraisal if your lender charges for one, and $1,000 to $2,500 for a survey only when title insurance can’t settle a boundary question.
Rural homes around Carp, Dunrobin and Greely often need well water and septic checks on top of the standard inspection. My background in the construction and electrical trades means I walk through a home’s electrical panel, roof and mechanical systems with buyers before they commit. Catching a $15,000 problem before firming up matters far more than saving $100 on the inspection.
CMHC Insurance and the 8% Sales Tax at Closing
If you put less than 20% down, you pay mortgage default insurance, and Ontario charges 8% sales tax on the premium in cash at closing. The premium itself goes onto the mortgage, but the tax cannot. CMHC confirms this on its premium page, and Ontario’s retail sales tax guide sets the 8% rate on insurance premiums.
This is the line buyers most often miss, because it’s easy to assume the whole insurance cost is rolled into the mortgage. Home insurance is separate and mandatory too: the lender needs proof of coverage before it releases funds. If you’re comparing down payment sizes, the mortgage stress test and the FHSA and RRSP Home Buyers’ Plan are worth reading together.
New Construction: HST, Rebates and Builder Adjustments
New homes in Ontario carry 13% HST, which is usually built into the builder’s price, and 2026 buyers may qualify for much larger rebates than before. Resale homes carry no HST on the price.
First-time buyers of a new home up to $1 million can recover the full 5% federal portion, up to $50,000, through the first-time home buyers’ GST/HST rebate. For agreements signed from April 1, 2026 to March 31, 2027, Ontario’s enhanced new housing rebate covers up to $80,000 of the 8% provincial portion for any buyer moving in as a primary residence.
Builder closings also add adjustments set out in the agreement, such as utility connections, the Tarion new home warranty enrolment fee, and levies. Have your lawyer review the adjustment schedule before you sign, not the week before closing. The GST/HST new home rebate guide covers eligibility in more detail, and new build closing costs in Ontario lists the builder adjustments to budget for.
What Are Closing Costs for Sellers in Ontario?
Sellers in Ontario don’t pay land transfer tax. Their closing costs are mainly real estate commission plus 13% HST, legal fees and disbursements, and any mortgage discharge fee or prepayment penalty. Commission is almost always the largest line, which is why my 1% Listing Commission makes the biggest difference to what a seller walks away with.
If you break a closed mortgage early, the penalty is generally the greater of three months’ interest or the interest rate differential. The Financial Consumer Agency of Canada explains how prepayment penalties are calculated. Ask your lender for a written payout figure before you set a closing date, since porting the mortgage to your next home can sometimes avoid it.
At closing the seller is credited for any property tax already paid past the closing date. Condo sellers should expect the buyer to request a status certificate, which the corporation must provide within 10 days for no more than $100, per the Condominium Authority of Ontario.
If the home was your principal residence every year you owned it, the gain is generally tax-free under the principal residence exemption, though you still report the sale. The full seller breakdown is in the cost of selling a home in Ottawa.
Property Tax Adjustments on Closing Day
On closing day your lawyer splits the year’s property tax so the seller pays up to the closing date and you pay from possession forward. Ottawa property taxes are based on the assessed value, not your purchase price, and are billed by the City of Ottawa. Estimate the ongoing bill with the Ottawa property tax calculator.
Water, hydro and gas are handled the same way, or through final meter readings. Budget for setup charges and deposits too. The monthly cost of owning a home in Ottawa picks up where closing costs leave off.
How to Lower Your Closing Costs in Ottawa
The biggest savings come from the first-time buyer land transfer tax refund and the right down payment size. A slightly larger down payment that moves you into a lower insurance tier, for example from 4.00% to 3.10% of the loan, can save more than haggling over any single fee.
Get fixed-fee quotes from two lawyers, ask whether your lender covers the appraisal, and confirm new-build adjustments before signing. On the selling side, compare commission structures in dollars, not percentages. When you buy with me, the Ottawa cash back program can offset part of your closing costs.
My job is to help you avoid a timing mistake first, then optimize price second. If you’re buying and selling at the same time, call me at (613) 601-9333 and we’ll map both closings and the cash each one needs before you list or write an offer.
About Jason Polonski, Ottawa REALTOR®
This guide is written by Jason Polonski, a full-time REALTOR® with Right at Home Realty who has spent 15+ years helping hundreds of buyers and sellers across Ottawa, with a focus on Kanata, Stittsville, Barrhaven, and the surrounding west-end communities. He works as a move coordinator first: the priority is helping clients avoid a costly timing or budgeting mistake, then optimizing price from there.
His background in the construction and electrical trades — including a technical diploma in Construction Electricity — gives him an uncommon read on home condition, systems, and the true cost of a property beyond the sticker price. Paired with a Bachelor of Commerce in Marketing and Finance, it lets him translate inspection findings and closing statements into plain numbers a buyer can plan around.
Jason is available seven days a week and works closely with local lawyers, inspectors, and lenders throughout the Ottawa area. Buyers who want a clear, itemized picture of their closing costs before writing an offer can reach him directly at (613) 601-9333 or polonskiottawa@gmail.com, or learn more on his about page and Google Business Profile.
Closing Costs in Ontario (FAQs)
Buyers usually pay 1.5% to 4% of the purchase price. On a $600,000 Ottawa resale home with 20% down, that’s about $11,000 to $13,000, mostly land transfer tax and legal fees.
Sellers pay real estate commission plus 13% HST, legal fees and disbursements, and any mortgage discharge fee or prepayment penalty. Sellers do not pay land transfer tax.
No. Land transfer tax is paid by the buyer when the property is registered in their name.
They pay it, but can claim a refund of up to $4,000, which means no tax on roughly the first $368,000 of the price. On a $450,000 condo, the tax drops from $5,475 to $1,475.
Most Ottawa real estate lawyers charge $1,500 to $2,500 plus HST and disbursements for a purchase, including title search, registration and closing-day funds.
Not on a resale home’s price. New homes carry 13% HST, usually built into the builder’s price, and first-time buyers and 2026 purchasers may qualify for large federal and Ontario rebates.
The premium can, but Ontario’s 8% sales tax on the premium cannot. It must be paid in cash at closing, for example $1,808 on a $22,600 premium.
Your lawyer prorates the year’s property tax so the seller pays up to closing and you pay from possession. If the seller prepaid, you reimburse that portion at closing.
