Home closing costs in Kingston and the area are an important part of any home-buying budget, but buyers frequently neglect them while focusing on saving for their down payment. The down payment is only one portion of the money needed to complete a purchase. Legal expenses, land transfer tax, adjustments, and several other costs may also have to be paid before the buyer receives the keys.
A commonly used guideline is to budget approximately 1.5% to 4% of the purchase price for closing costs. However, the amount can differ. A first-time buyer who qualifies for the Ontario land transfer tax refund may pay less, while someone purchasing a newly built home or a property in Toronto could face additional expenses.
Buyers should discuss their expected costs with their mortgage professional and real estate lawyer early. Understanding the cash needed at closing can stop an unpleasant surprise after a seller accepts an offer.
What are closing costs in Ontario?
Closing costs in Ontario include taxes, legal expenses, adjustments, and administrative charges associated with transferring property ownership. The buyer’s lawyer handles some payments on closing day, and the buyer can pay others, such as for a home inspection or appraisal, before closing.
These expenses are separate from the deposit submitted with the offer and the remaining down payment. The deposit normally forms part of the down payment, but buyers must still have sufficient funds to cover all other costs required to complete the purchase.
The exact amount depends on the purchase price, the location and type of property, the size of the down payment, whether the buyer qualifies for any rebates, and the terms in the Agreement of Purchase and Sale.
Ontario land transfer tax
Ontario’s land transfer tax is typically the highest single cost at closing. It’s computed by a system that applies varying tax rates to different parts of the purchase price.
The initial $55,000 is subject to a 0.5% tax rate. A 1% tax applies to amounts ranging from $55,000 to $250,000. A 1.5% tax applies to earnings from $250,000 to $400,000, with a 2% rate for amounts exceeding $400,000. Properties valued at over $2 million for one- or two-family residences face a 2.5% tax rate on the excess amount.
Because the rates are marginal, they apply the highest applicable rate only to part of the purchase price.
For example, you would calculate the Ontario land transfer tax on a $600,000 home as follows. The tax would be $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the next $150,000 and $4,000 on the remaining $200,000. The total Ontario land transfer tax would be $8,475.
Buyers can use the Ratehub Ontario land transfer tax calculator for a quick estimate based on the purchase price and location. It also shows the estimated first-time buyer rebate and accounts for Toronto’s municipal land transfer tax when applicable. The buyer’s lawyer calculates and collects the land transfer tax as part of the closing process
First-time homebuyer land transfer tax refund
Eligible first-time buyers may receive an Ontario land transfer tax refund of up to $4,000. A qualifying buyer purchasing a home priced at $368,000 or less may have the provincial land transfer tax waived. On a more expensive home, the maximum refund remains $4,000.
Using the previous $600,000 example, the regular Ontario land transfer tax would be $8,475. An eligible first-time buyer receiving the full $4,000 refund would pay $4,475.
There are eligibility requirements, including rules regarding previous homeownership, occupancy, citizenship or permanent residency, and a spouse’s ownership history. Buyers should not assume they qualify simply because they have never held title to a home. Their lawyer can review the circumstances and submit the refund claim when appropriate.
Toronto’s municipal land transfer tax
Most buyers in Kingston and the surrounding area pay only the provincial land transfer tax. Toronto is different because the city also charges its own municipal land transfer tax.
Someone purchasing within the City of Toronto may therefore pay both the Ontario tax and a separate Toronto tax. Eligible first-time buyers may qualify for a Toronto municipal rebate of up to $4,475 plus the Ontario refund.
Toronto’s municipal land transfer tax applies only to properties purchased within the City of Toronto. Buyers considering a move to Toronto should know that the city charges this tax on top of the Ontario land transfer tax.
Legal fees, disbursements and title registration
A real estate lawyer handles the legal transfer of property. The lawyer reviews the Agreement of Purchase and Sale, conducts title searches, prepares the mortgage and transfer documents, registers the new ownership, receives and distributes funds, and reports to the buyer and lender after closing.
The final legal account may include the lawyer’s professional fee, HST, registration charges, title searches, courier or wire transfer expenses, software charges, and other disbursements. For straightforward residential purchases, legal fees typically range from $1,500 to $2,500, but more complex transactions can incur higher costs.
Buyers should request an estimate directly from their lawyer rather than relying on a general online figure. The purchase price, number of mortgages, property type, and title issues can all affect the final amount.
Title insurance
Buyers commonly arrange title insurance through their lawyer. This policy is a singular provision that can safeguard against various title issues, such as defects, fraud, survey discrepancies, registration errors, and other risks to ownership.
The cost depends on the property’s value and type, the mortgage, and the coverage included in the policy. A lawyer may list it as a separate item on their statement of account or include it within a broader estimate of legal fees and disbursements.
Title insurance does not replace a home inspection and does not insure the physical condition of the house. It protects against specified title and ownership risks rather than problems such as a failing roof, damaged foundation, or worn-out furnace.
Provincial sales tax on mortgage default insurance
Buyers making a down payment of less than 20% will usually require mortgage default insurance. Depending on the lender, CMHC, Sagen, or Canada Guaranty may provide the insurance.
Lenders can normally add the mortgage insurance premium to the mortgage balance. However, you need to pay Ontario’s provincial sales tax on that premium separately when you close, rather than including it in the mortgage.
Ontario charges 8% provincial sales tax on the mortgage default insurance premium, which is calculated as 8% of the insurance premium itself, not the home’s purchase price or mortgage amount. Buyers should include this tax in their closing budget to ensure they have sufficient funds for all costs associated with their mortgage insurance.
For example, if the mortgage insurance premium were $20,000, the Ontario tax would be $1,600. They might add the $20,000 premium to the mortgage, but you would need to have the $1,600 tax available for closing.
This expense might surprise buyers because people rarely mention it when they first discuss the minimum down payment.
Property tax and other closing adjustments
A closing adjustment divides certain property expenses and income between the buyer and seller according to the closing date.
Suppose the seller has already paid the full year’s property taxes, and the purchase closes halfway through the year. The buyer may have to reimburse the seller for the portion covering the period after the closing date. If taxes are unpaid or paid through another arrangement, the adjustment could work differently.
Adjustments may involve condominium fees, prepaid rents, tenant deposits, or the value of fuel remaining in an oil or propane tank. The applicable items depend on the property and the terms of the agreement.
An adjustment is an accounting calculation intended to ensure that each party pays or receives the amount for the period during which they own the property.
The buyer’s lawyer prepares a Statement of Adjustments showing the purchase price, deposit, and applicable credits or charges.
Home inspection costs
Buyers normally pay for a home inspection when the inspector performs it, rather than on closing day. The buyer still incurs this expense as part of their total purchase costs, and they should include it in their budget.
Inspection fees typically range from $400 to $700 for a typical home, but larger, older, or more complex properties may cost more. You might also need additional inspections for a septic system, well, wood-burning system, electrical components, mould, or other specialized concerns.
A home inspection provides information about the visible condition of the property. It differs from an appraisal, which is primarily concerned with market value.
Appraisal fees
A mortgage lender may require an appraisal to confirm that the property provides acceptable security for the loan. Depending on the lender and mortgage product, the buyer may pay the cost, the lender may absorb it, or they may reimburse it after closing.
A residential appraisal may cost several hundred dollars, although unusual, rural, waterfront or income-producing properties can require more extensive work.
An appraisal completed for the lender is not a substitute for a home inspection. The appraiser assesses value for financing, while the home inspector examines the property’s visible systems and physical condition.
Home insurance
Mortgage lenders normally require confirmation that suitable property insurance will be in place on the closing date. Buyers should arrange coverage well before closing rather than leaving it until the last day.
Getting insurance can take additional time for rural homes, waterfront properties, older houses, properties with oil heating or wood-burning appliances, or with previous insurance claims. The insurer may request information about the roof, electrical service, plumbing, heating system, distance from a fire station, or other property features.
The first insurance payment may be required before closing, depending on the insurer and payment arrangement.
Costs when buying a condominium
Condominium buyers may incur expenses that do not apply to freehold homes. The lawyer may need to review the condominium status certificate, which provides information about the corporation’s finances, rules, insurance, reserve fund, and any legal or financial concerns.
The terms of the offer determine who pays for the status certificate, which is ordered during a conditional period. Monthly condominium fees may also be adjusted on closing if the seller has prepaid them.
A buyer should also consider if an announcement of a special assessment has occurred or if discussions about it are happening. A special assessment is separate from normal closing costs, but it can create a significant expense after possession.
Closing Costs for new build homes
Buying a newly built or substantially renovated home can involve closing adjustments that rarely apply to a resale property. The builder’s Agreement of Purchase and Sale may permit charges for utility connections, meter installations, grading deposits, development-related expenses, Tarion enrolment, and other items. Before the agreement becomes firm, a real estate lawyer should review it, as caps may apply to some adjustments but not to others.
HST is another important consideration, although temporary rebate programs introduced in 2026 can significantly reduce the amount payable by qualifying buyers. For purchase agreements entered with a builder from April 1, 2026, through March 31, 2027, the Ontario Enhanced New Housing Rebate may recover the full 8% provincial portion of the HST on an eligible new home valued at up to $1 million. For homes valued between $1 million and $1.5 million, the rebate caps at $80,000. The rebate gradually reduces for homes valued between $1.5 million and $1.85 million.
Ontario is also providing additional relief equal to up to 5% of the federal HST portion for buyers who qualify for the enhanced provincial rebate. First-time buyers may also qualify for federal and Ontario first-time homebuyer GST/HST rebates.
In many qualifying builder purchases, the closing process allows the buyer to credit the rebates toward the purchase. However, eligibility, deadlines, and the method used to calculate the rebate depend on the buyer, the property, and the purchase agreement. Buyers should have their lawyer confirm which rebates apply and whether the advertised purchase price includes HST and the applicable rebates.
Closing costs and vacant land purchases
Vacant land purchases can involve costs that rarely arise when buying an existing home. Ontario land transfer tax and legal expenses still apply, but buyers may also need a survey, environmental or conservation review, soil testing, zoning confirmation, or an appraisal for financing.
Depending on how the seller owned and used the property, and if they are selling it as part of a business, the Canada Revenue Agency may apply HST to some vacant land sales. Buyers should ask their lawyer to confirm if HST is part of the purchase price or if it is payable on top of it.
A building lot may also require expenses for permits, development charges, utility connections, driveway access, grading, excavation, a well, and a septic system. These are not all closing-day costs, but they can significantly affect the true cost of purchasing and developing the land.
Before making an offer, buyers should check whether they can use the property for their intended purpose and get estimates for the major services and approvals they might need.
Moving and immediate ownership expenses
Moving costs are not legal closing costs, but they still affect the amount of money a buyer needs. Truck rentals, professional movers, utility account charges, internet installation and storage expenses can add up quickly.
There may also be immediate costs after possession, including changing locks, purchasing appliances, repairing items identified during the inspection, or buying tools and equipment needed to maintain the property.
A buyer who uses every available dollar for the down payment and legal closing costs may have little room left for an unexpected repair. Homeownership becomes considerably easier when you maintain a separate emergency fund.
How much should an Ontario buyer save?
While the frequently quoted estimate of 1.5% to 4% of the purchase price serves as a useful early guideline, one should not consider it a guaranteed calculation.
A qualifying first-time buyer in Kingston may receive a substantial land transfer tax refund and fall near the lower end of the range. Additional funds might be required by a buyer with a smaller down payment to cover the provincial tax on mortgage default insurance. A new-construction purchased or someone buying in Toronto could require considerably more.
Online closing-cost calculators can help buyers test different scenarios. However, they cannot predict every adjustment, legal expense, or property-specific cost. A personalized estimate from the buyer’s lawyer and mortgage professional will be more reliable.
The safest approach is to calculate the expected down payment and then maintain additional accessible funds for land transfer tax, legal expenses, mortgage insurance tax, adjustments, inspections, moving and immediate ownership costs.
For a rough idea of what to expect, the Canadian Mortgage App closing costs calculator can help estimate expenses based on the purchase price, location, down payment, and other details. Your lawyer will calculate the actual legal costs, land transfer tax, and closing adjustments, so you should treat the result as a starting point rather than a final figure.
Plan for closing costs before making an offer.
Buyers should consider Ontario’s closing costs when they look for a home, not after they have already bought a property. Understanding the likely expenses helps buyers establish a realistic price range and avoid committing all their savings to the down payment.
When working with buyers in the Kingston area, I help them consider the full cost of purchasing a home, including expenses that may not appear in the listing price. Your lawyer and mortgage professional will provide the final legal and financing figures, but early planning can make the closing process far more manageable.
Frequently asked questions about home closing costs.
How much do home closing costs run in Kingston and the surrounding region?
Lenders advise many buyers to budget approximately 1.5% to 4% of the purchase price for home closing costs. The actual amount depends on the purchase price, down payment, first-time buyer eligibility, legal expenses, closing adjustments, property type, and whether mortgage default insurance is required.
A buyer who qualifies for the Ontario land transfer tax refund may need less than someone who does not qualify. New-build homes, condominiums, vacant land, and properties with unusual financing or title issues may also incur additional costs.
Are closing costs included in the mortgage?
Buyers cannot add most closing costs to their mortgage. Buyers need separate funds for Ontario land transfer tax, legal expenses, title insurance, closing adjustments, and other amounts collected by the lawyer.
You can usually add the mortgage insurance premium to the mortgage balance. However, you need to pay Ontario’s provincial sales tax on that premium separately at closing; do not include it in the mortgage.
Does the deposit cover the closing costs?
No, the buyer’s down payment normally includes the deposit submitted with the offer, which the seller credits toward the purchase price. It does not cover legal fees, land transfer tax, adjustments, or other closing expenses.
Buyers need sufficient funds to cover the remaining down payment and all closing costs after they credit the deposit.
Do first-time buyers pay land transfer tax in Ontario?
Eligible first-time buyers may receive an Ontario land transfer tax refund of up to $4,000. On a qualifying purchase priced at $368,000 or less, the refund may eliminate the provincial land transfer tax. On a more expensive property, the buyer may receive the maximum refund and pay the remaining balance.
Eligibility depends on more than whether the buyer has owned a home before. A spouse’s ownership history, residency requirements, and plans to occupy the home may also affect qualification.
When are closing costs paid?
Most legal closing costs go to the buyer’s lawyer shortly before the closing date. The lawyer provides a statement showing the balance required to complete the purchase, including the remaining down payment, land transfer tax, legal account, and closing adjustments.
You may pay other purchase expenses earlier. A home inspection company normally collects payment upon completion, while a mortgage lender may charge for an appraisal during the mortgage approval process.
Can closing costs change before closing day?
Yes. The final amount can change when the lawyer receives the property tax information, mortgage instructions, title insurance cost, utility details, and other figures needed to prepare the Statement of Adjustments.
Buyers should avoid relying on an estimate down to the last dollar. Keeping additional accessible funds available can help cover a larger change or an expense not known when the original estimate was prepared.
Are closing costs different for condominiums?
The major expenses, including land transfer tax and legal fees, still apply. Condominium purchases can also involve the cost of reviewing the status certificate and an adjustment for monthly condominium fees already paid by the seller.
Buyers should also review the corporation’s reserve fund, financial statements, insurance, planned repairs, and any existing or proposed special assessments. A special assessment may not be a closing cost, but it can create a significant expense after the purchase.
Are closing costs different for new build homes?
New-build purchases may include builder adjustments for utility connections, meter installation, grading deposits, development-related expenses, Tarion enrolment, and other charges permitted under the purchase agreement.
HST and available new housing rebates can also affect the amount due at closing. Buyers should have the builder’s agreement reviewed by a real estate lawyer before it becomes firm and confirm whether the advertised price includes HST and any applicable rebates.
Don’t miss these guides
Closing costs are only one part of preparing for a home purchase. These related guides can help you understand the process, ask better questions, and identify expenses or complications before you commit to a property.
Understanding Your Home Buying Process
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20 Kingston Home Buying Questions
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First-Time Homebuyer Mistakes to Avoid
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Vacant Land Purchasing and Residential Construction
Buying land can involve HST, surveys, development charges, zoning reviews, permits, servicing, wells, septic systems, hydro installation, and construction financing.
Land Transfer Tax in Ontario
Learn how Ontario land transfer tax is calculated, how marginal tax rates work, and when first-time buyers may qualify for a refund.