Closing Costs in Ontario: What Ottawa Buyers Actually Pay
Closing costs in Ontario are the one-time expenses a buyer pays on top of the purchase price to finalize a home, and in the Ottawa area they typically add up to roughly 1.5% to 4% of the price. For a buyer in Kanata, Stittsville, or elsewhere in the west end, that can mean anywhere from about $10,000 to $40,000 depending on the home, the down payment, and whether it is a resale or a new build.
This guide breaks down each closing cost line by line, with the figures Ottawa buyers see most often, the rebates that can lower the bill, and the adjustments that surprise people at the lawyer’s office. The goal is a clear budget before an offer is written — not a scramble the week of closing.
What Are Closing Costs in Ontario?
Closing costs are separate from the down payment. They cover the legal, administrative, tax, and insurance items required to transfer a property into a buyer’s name and register the mortgage. Most are due on or shortly before closing day, and many are non-refundable once incurred.
A useful rule of thumb for the Ottawa market is to set aside 1.5% to 4% of the purchase price. Resale homes tend to sit at the lower end, while new construction, higher-priced properties, and purchases inside Toronto’s municipal land transfer tax zone push toward the top. Ottawa buyers are outside that municipal tax, which works in their favour.
| Closing cost | Typical Ottawa range |
|---|---|
| Land transfer tax | Based on price (see below) |
| Legal fees and disbursements | $1,500 – $2,500+ |
| Title insurance | ~$300 – $500 (one-time) |
| Home inspection | $400 – $700 |
| Property appraisal | $300 – $500 |
| Land survey (if needed) | $1,000 – $2,500 |
| Property tax and utility adjustments | Varies by closing date |
| Utility hook-ups and moving | Varies |
For a fuller picture of what to save before an offer, the breakdown in the total cost to buy a house in Ottawa pairs well with this page, and buyers weighing affordability can cross-check against the salary needed to buy a home in Ottawa.
Land Transfer Tax and First-Time Buyer Rebates
Land transfer tax is usually the largest single closing cost. Ontario charges it on a sliding scale, so the rate climbs with the purchase price. On a $600,000 home, the provincial land transfer tax works out to roughly $8,475. Buyers can confirm their own figure using the Ontario land transfer tax guidance before budgeting.
First-time buyers get meaningful relief. Ontario offers a land transfer tax refund for first-time homebuyers of up to $4,000, provided neither the buyer nor their spouse has owned a home anywhere in the world. On many entry-level Ottawa purchases, that rebate covers the full provincial tax, so a qualifying first-time buyer pays little or nothing on this line.
Ottawa buyers do not pay a second municipal land transfer tax — that additional charge applies only within the City of Toronto. It is worth confirming eligibility early, since the rebate is claimed at closing through the buyer’s lawyer rather than filed later.
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Legal Fees and Title Costs
Every purchase in Ontario must close through a real estate lawyer, who registers the transfer and mortgage, conducts title searches, and coordinates funds on closing day. Legal fees typically range from $1,500 to $2,500 or more, plus HST and disbursements such as search and registration charges.
Title insurance is a separate, one-time premium — often in the $300 to $500 range — that protects against title defects, survey issues, and certain kinds of fraud. It is not legally mandatory on every purchase, but most lenders require it, and most lawyers recommend it. The Financial Consumer Agency of Canada’s overview of title insurance explains what it does and does not cover.
Close to completion, the lawyer reviews the statement of adjustments with the buyer. This document reconciles anything the seller prepaid — property taxes, utilities, or condo fees — so the buyer reimburses only their share from the closing date forward.
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Inspection, Appraisal, and Survey Costs
A home inspection is one of the smartest few hundred dollars a buyer can spend, especially on older Ottawa housing stock. Inspections generally cost $400 to $700, and they flag issues with the roof, foundation, electrical, and mechanical systems before a buyer is committed. Properties on wells or septic systems, common in Carp, Dunrobin, and rural west-end pockets, may need additional water and septic testing.
Lenders usually require a property appraisal to confirm the home is worth the amount being financed. Appraisals run about $300 to $500, though some lenders cover or waive the fee. A survey — a legal drawing of the property’s boundaries — is not always required, but when title insurance does not resolve a boundary question, a new survey can cost $1,000 to $2,500.
Jason’s background in the construction and electrical trades makes the inspection stage genuinely useful for his clients. He reads inspection reports with an eye for which findings are routine maintenance and which point to real expense, so buyers understand the hidden costs of buying a home in Ontario before they close, not after.
Insurance and CMHC Mortgage Costs
Home insurance is mandatory. Lenders require proof of a policy before releasing funds, so buyers should arrange coverage as soon as an offer is firm. Rates vary by property type, age, and location, and comparing quotes across insurers usually pays off.
Buyers who put down less than 20% must carry mortgage default insurance, most often through the CMHC. This premium is added to the mortgage and paid over the life of the loan rather than upfront — but in Ontario, the provincial sales tax on the premium (roughly 8%) is due at closing and cannot be rolled into the mortgage. The CMHC’s explanation of mortgage loan insurance details how the premium is calculated.
The size of the down payment shapes this cost directly, and it interacts with borrowing power. Buyers planning their financing can review how interest rates affect buying power and how the mortgage stress test sets the ceiling on what they qualify for. Registered savings such as the FHSA and RRSP Home Buyers’ Plan can help fund both the down payment and closing costs.
GST/HST on New Construction Homes
Resale homes in Ontario are not subject to GST/HST on the purchase price, but newly built homes and condos are. New construction typically carries 13% HST, which builders often quote as included in the advertised price — though buyers should always confirm this in writing before signing.
Relief exists for many buyers. The federal GST/HST new housing rebate returns a portion of the tax on qualifying homes, and Ontario adds a provincial component. Because tax rules on new builds change and eligibility depends on price and use, buyers should verify current rebate thresholds with their builder and lawyer rather than assuming last year’s rules still apply.
New-build closings also tend to include extra developer charges — items like utility connections, Tarion enrolment, and levy adjustments — that resale purchases do not. These are set out in the builder’s agreement and are worth reviewing line by line.
Property Tax Adjustments and Setup Costs
Property taxes in Ottawa are based on a home’s assessed value, not its purchase price, and they are billed by the City of Ottawa. At closing, the lawyer adjusts for any portion the seller prepaid, so the buyer starts paying from the day they take possession.
Beyond taxes, moving into a home carries setup costs that are easy to overlook: connecting hydro, gas, water, and internet, plus any deposits new providers require. None is large on its own, but together they belong in the closing budget alongside moving expenses.
These recurring costs continue long after closing. Buyers thinking past the transaction should factor in the monthly cost of owning a home in Ottawa and get familiar with common Ottawa mortgage terms and the choice between a fixed and variable rate mortgage so the numbers hold up over the full term. Current lending rate context is available from the Bank of Canada.
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)
Closing costs in Ontario typically run 1.5% to 4% of the purchase price. On a $600,000 Ottawa home, that usually works out to roughly $10,000 to $24,000, depending on the down payment, whether it’s a resale or new build, and whether first-time buyer rebates apply.
Closing costs cover land transfer tax, legal fees and disbursements, title insurance, a home inspection, a lender appraisal, property tax and utility adjustments, and any provincial sales tax on CMHC mortgage insurance. New construction adds HST plus builder charges such as utility connections and Tarion enrolment.
First-time buyers in Ontario can claim a land transfer tax refund of up to $4,000, as long as neither they nor their spouse has owned a home anywhere in the world. On many entry-level Ottawa purchases, this rebate covers the full provincial tax, so a qualifying buyer pays little or nothing on this line.
Real estate legal fees in Ottawa generally range from $1,500 to $2,500 or more, plus HST and disbursements. The fee covers title searches, document preparation, registering the transfer and mortgage, and coordinating funds on closing day.
Resale homes are not subject to HST on the purchase price, but certain closing costs — legal fees, inspections, and appraisals — do carry HST. Newly built homes and condos are taxed at 13% HST, though many qualify for a partial new housing rebate.
New construction closing costs are usually higher than resale because of 13% HST and extra developer charges like utility hook-ups, Tarion enrolment, and levy adjustments. Builders often quote the HST as included, but buyers should confirm this in writing and verify current rebate eligibility with their lawyer.
Property tax adjustments reimburse the seller for any taxes they prepaid beyond the closing date. Ottawa property taxes are based on assessed value rather than purchase price, and the lawyer calculates each party’s share so the buyer only pays from the day they take possession.
Yes — the first-time buyer land transfer tax rebate, lender appraisal waivers, and negotiating certain fees can all lower the out-of-pocket total. Working with an experienced local REALTOR® helps buyers anticipate each cost early and avoid surprises the week of closing.
