Buying a home is an exciting milestone, but it's crucial to be aware of the various fees and expenses involved in the process. In Ontario, Canada, there are several costs associated with purchasing a home that every buyer should understand upfront. In this blog post, we'll explore the common fees incurred when buying a home in Ontario, helping you navigate the financial aspects of your real estate journey.

Land Transfer Tax:
One of the primary fees to consider is the Land Transfer Tax. This tax is payable by the buyer and is based on the property's purchase price. The amount varies depending on the value of the property, and first-time homebuyers may be eligible for a rebate, so be sure to explore if you qualify. The approximate cost ranges for the Land Transfer Tax are as follows:

Purchase Price	Marginal Tax Rate
First $55,000	0.5%
$55,000.01 to $250,000.00	1.0%
$250,000.01 to $400,000.00	1.5%
$400,000.01 to $2,000,000.00	2.0%
Over $2,000,000	2.5%

Harmonized Sales Tax (HST):
For newly constructed or substantially renovated homes, the Harmonized Sales Tax (HST) is applicable. It's important to note that HST is typically included in the purchase price of the property, so you should be aware of this additional cost when budgeting for your home.

Legal Fees:
Engaging a real estate lawyer is crucial to ensure a smooth and legally sound transaction. Legal fees cover a range of services, including title searches, document preparation, and the completion of the purchase. Legal fees can typically range from $1,500 to $3,000, depending on the complexity of the transaction and the lawyer's rates.

Title Insurance:
To safeguard against potential defects in the property's title, it's advisable to obtain title insurance. The cost of title insurance typically ranges from $200 to $500, based on the purchase price of the property. This insurance provides protection and peace of mind for the buyer.

Home Inspection:
A professional home inspection is highly recommended to assess the property's condition thoroughly. A qualified inspector will evaluate various aspects, such as the foundation, structure, electrical systems, plumbing, and more. Home inspection fees vary based on the size and complexity of the home, generally ranging from $400 to $800. Investing in a home inspection is a worthwhile expense to uncover any potential issues.

Mortgage Application Fee:
When securing a mortgage, some lenders may charge an application fee to process your loan application. This fee can range from $200 to $500, so it's important to consider this when comparing mortgage options.

Mortgage Insurance:
If your down payment is less than 20% of the purchase price, mortgage insurance is typically required. The cost of mortgage insurance depends on the loan amount and the insurer. Mortgage insurance premiums can range from 0.6% to 4.5% of the mortgage amount. It's crucial to factor this expense into your budget to ensure a comprehensive understanding of your monthly mortgage payments.

Appraisal Fee:
Lenders may require an appraisal to determine the market value of the property. This fee is generally paid by the buyer and can range from $300 to $500, depending on the size and complexity of the property. An appraisal provides an independent assessment of the property's value, ensuring a fair transaction for all parties involved.

Property Insurance:
To protect against loss or damage, mortgage lenders require proof of property insurance. The cost of property insurance varies based on the property's value, location, and coverage selected. Generally, property insurance costs can range from $800 to $2,000 per year. Obtaining adequate insurance coverage is essential before closing on your new home.

Moving Expenses:
Don't forget to account for moving expenses when planning your budget. Whether you hire professional movers or opt for a DIY approach, there will be costs associated with transporting your belongings to your new home. Moving expenses depend on factors such as the distance, size of the move, and whether you hire professionals or not. Costs can range from a few hundred dollars to a few thousand dollars.


Buying a home in Ontario, Canada involves various fees and expenses that buyers need to consider. The approximate cost ranges provided in this blog post can give you a general idea of what to expect. However, please note that these are approximate cost ranges and can vary based on factors such as the specific property, location, service providers, and individual circumstances. To obtain accurate cost estimates, it is advisable to consult professionals and service providers involved in your home purchase transaction. They will be able to provide you with more precise and personalized information based on your unique situation. By being well-informed and seeking professional guidance, you can make informed financial decisions and ensure a successful and financially sound home buying experience in Ontario.