Closing costs in Ontario explained, line by line

Every line item, no surprises

If you're buying in Ottawa, "closing costs" is the line that ambushes more first-time buyers than any other. Let me walk through every cost, what it actually pays for, and what you'll see on a $700,000 purchase.

Ontario Land Transfer Tax (LTT)

The largest line for most Ottawa buyers. Ontario's LTT is marginal — each portion of the purchase price is taxed at a different rate:

• First $55,000: 0.5% = $275
• $55,001 to $250,000: 1.0% = $1,950
• $250,001 to $400,000: 1.5% = $2,250
• $400,001 to $2,000,000: 2.0% = $6,000 (on a $700K home, that's $300K × 2%)
• Over $2,000,000: 2.5%

On a $700,000 Ottawa purchase: $10,475 total.

First-time buyer rebate: up to $4,000. Reduces the bill to $6,475 if you qualify.

Ottawa has no municipal LTT. Only Toronto does. This saves Ottawa buyers thousands compared to Toronto buyers at the same price.

Legal fees and disbursements

Your real estate lawyer reviews the agreement, conducts title and off-title searches, prepares closing documents, registers the transfer, and disburses funds. Expect:

• Legal fees: $1,200 to $1,800
• Disbursements (registration, software, couriers): $400 to $700
• HST on legal fees: ~$200

Total: $1,800 to $2,500 for a typical residential purchase.

Title insurance

A one-time premium that protects you and your lender against title fraud, survey issues, and undisclosed liens. Required by most lenders.

Cost: $400 to $700 depending on purchase price. Standard providers: Stewart Title, FCT, Chicago Title.

Home inspection

Optional but strongly recommended. In Ottawa:

• Standard inspection: $500 to $700
• Older home (pre-1960) or larger square footage: $700 to $900
• Add-ons: thermal imaging $150, sewer scope $250, mould testing $300

Status certificate (condo only)

If you're buying a condo, your lawyer reviews the status certificate package — financial statements, reserve fund study, declaration, by-laws, and any pending litigation. The cost is paid by the buyer at the time of order.

Cost: $100 to $150 paid to the condo corporation, plus a few hundred for lawyer review.

Property tax adjustment

If the seller has prepaid the year's property tax, you reimburse them for the portion of the year you'll own the home. On a typical July 1 close with taxes prepaid through year-end:

Adjustment: $4,000 to $4,500 owed to the seller on a typical Ottawa home.

If taxes are not yet paid, this works in reverse — you get a credit.

Utility and fuel adjustments

If the home uses oil heat (still common in some Manotick and rural pockets) or propane, the tank is typically filled at closing and you reimburse the seller.

Cost: $500 to $1,500 for an oil tank top-up.

Mortgage default insurance (CMHC, Sagen, Canada Guaranty)

Only if your down payment is less than 20%. The premium is added to your mortgage, not paid in cash, but Ontario charges PST on it that IS paid in cash at closing.

• 5–9.99% down: 4.0% premium
• 10–14.99% down: 3.1% premium
• 15–19.99% down: 2.8% premium
• PST on premium: 8% in Ontario

On a $700K purchase with 10% down: premium of $19,530 added to mortgage, PST of $1,562 paid at closing in cash.

Survey

If the seller doesn't provide one and your lender requires it, you pay. Title insurance has largely replaced this in 2026, but on rural and waterfront properties it still comes up.

Cost: $1,200 to $2,500 if needed.

Total closing-cost picture on a $700K Ottawa home

For a first-time buyer with 20% down and rebate eligibility:

• LTT (after rebate): $6,475
• Legal: $2,200
• Title insurance: $500
• Inspection: $600
• Adjustments: $2,500
• Misc: $300

Total: about $12,575, or 1.8% of purchase price.

Add CMHC PST if you're under 20% down. Add a few hundred more if condo. Budget 2.0% of purchase price to be safe — anything left over goes into the furniture fund.

If you want a tighter estimate based on your specific purchase, I can run it. 613-262-6545 or fil@613realtor.ca.