Planning tool
How much cash do you need on closing day?
Your down payment is only part of it. This calculator itemizes land transfer tax, legal fees, title insurance, inspection, adjustments and the sales tax on default mortgage insurance, then totals the actual cash your lawyer will need before the keys change hands.
Your purchase
Closing costs are the cash you need on top of your down payment. The defaults below are typical Ontario planning figures you can override.
The federal minimum at this price is $50,000.
Affects the insurance premium below 20% down.
Adjust the estimates
Ontario real estate lawyers commonly land in the $1,800 to $2,800 range for a purchase with a mortgage.
Set to zero if you are waiving the inspection or the lender covers the appraisal.
Property tax and utility adjustments reimburse the seller for amounts they prepaid.
Total cash required on closing day
$88,649
Your $75,000 down payment plus $13,649 in closing costs on a $750,000 purchase in Hamilton. Budget for closing costs of roughly 1.82% of the purchase price.
Closing costs
$13,649
Everything other than your down payment
Down payment
$75,000
10.0% of the purchase price
Where the money goes
Your lawyer will send a statement of adjustments with the exact figures a few days before closing.
- Ontario land transfer tax
- $11,475
- Ontario first-time buyer refund
- − $4,000
- Legal fees, disbursements and title insurance
- $2,200
- Home inspection and appraisal
- $800
- Adjustments, utility hookups and moving
- $1,500
- Ontario sales tax on the mortgage insurance premium
- $1,674
- Closing costs subtotal
- $13,649
- Plus your down payment
- $75,000
- Cash required on closing day
- $88,649
The insurance premium tax catches people out
Below 20% down, default mortgage insurance applies. The premium itself is added to your mortgage, but Ontario charges sales tax on that premium and the tax cannot be financed.
- Loan-to-value
- 90.0%
- Premium rate
- 3.10%
- Premium added to the mortgage
- $20,925
- Sales tax on the premium, payable in cash at closing
- $1,674
Costs this estimate does not include
Ask about these early so nothing lands as a surprise.
- · Status certificate review for a condominium, commonly $100 to $150 for the certificate plus legal review time.
- · HST on a newly built home from a builder, which is usually built into the builder price with any rebate assigned to the builder.
- · Builder closing adjustments on a new build, including development levies, utility enrolment and Tarion enrolment.
- · Home insurance, which must be in place before the lender advances funds.
- · Mortgage discharge or penalty costs if you are also selling a property.
- · Rural or waterfront due diligence such as well and septic testing.
What this calculation assumes
- · Land transfer tax uses current Ontario rates, plus City of Toronto municipal rates where applicable.
- · First-time buyer rebates are applied at their statutory maximums and never exceed the tax otherwise payable.
- · Legal, inspection and adjustment figures are planning estimates you can override. Your lawyer sets the actual amount.
- · The Ontario sales tax on a default insurance premium is charged on the premium and cannot be added to the mortgage.
- · Lenders generally want to see closing costs of about 1.5% of the purchase price available in addition to the down payment.
- · Property tax and utility adjustments depend on the closing date and what the seller prepaid.
Other calculators
Know your cash-to-close before you write an offer
Most financing surprises are cash surprises, not rate surprises. A readiness review confirms what you need on closing day and where it can come from.
Understanding the numbers
Closing costs, answered
How much should I budget for closing costs in Ontario?
A common planning figure is about one and a half per cent of the purchase price, and lenders often want to see that amount available in addition to your down payment. In practice the total is driven by land transfer tax, so it varies a great deal: a Toronto purchase pays two land transfer taxes and lands well above that guideline, while the same price in Hamilton or Mississauga pays one and often falls below it.
Can closing costs be added to the mortgage?
Generally no. Closing costs are paid in cash to your lawyer before closing. There are a few narrow exceptions — some purchase-plus-improvements structures and certain builder incentives change the cash requirement — but you should plan on funding closing costs from your own resources rather than from the mortgage.
What is the sales tax on mortgage insurance and why is it separate?
When your down payment is below twenty per cent, default mortgage insurance is required. The premium itself is normally added to your mortgage and amortized. Ontario, however, charges provincial sales tax on that premium, and the tax cannot be financed. It becomes a cash item on closing day, and on a larger purchase it can be well over a thousand dollars, which surprises buyers who budgeted only for the premium.
Do I need a home inspection, and what does it cost?
It is not a lender requirement in most cases, but it is generally sound practice, particularly on older housing stock or anything with a rental suite. Inspections in Ontario commonly run a few hundred dollars. Appraisals are sometimes ordered by the lender and sometimes paid by you depending on the product and the lender, and an appraisal is not a substitute for an inspection.
What are adjustments on the statement of adjustments?
They reconcile amounts the seller prepaid that cover a period after you take ownership — most often property tax, sometimes utilities, and on rural properties sometimes fuel in a tank. Your lawyer calculates them based on the closing date and adds them to the funds you deliver. They are usually modest but they are not zero.
What about buying a newly built home?
New construction from a builder carries HST, which is normally included in the advertised price with the new housing rebate assigned to the builder. Builder purchases also typically add development levies, utility enrolment fees, Tarion enrolment and occupancy costs on a condominium, and those closing adjustments can be significant. Read the builder’s closing cost schedule carefully and have your lawyer review the agreement.
Where deals get uncomfortable
Financing rarely fails on the rate.
When a purchase gets difficult in the last two weeks, it is almost never because the rate moved. It is because the cash on closing day turned out to be larger than the buyer planned for, or because the funds are sitting somewhere the lender cannot verify in time.
Both of those are solvable months in advance and very hard to solve on short notice. Sorting out the total early — and confirming that your down payment has a clean ninety-day history — is the least glamorous and most useful preparation you can do.
Get these sorted before you offer
A ninety-day history for your funds
Lenders verify where the down payment came from. Money that appeared recently without an explanation needs one, and gifts need a signed gift letter.
A real estate lawyer chosen in advance
Ask for their fee, disbursements and title insurance cost in writing. It is one of the few closing costs you can compare and control.
Home insurance quoted, not just intended
The lender will not advance funds without a binder in place. Older wiring, plumbing or roofs occasionally complicate this.
A status certificate ordered early on a condo
It takes time to produce and your lawyer needs time to review it. Budget for both the certificate and the review.
A reserve beyond the calculated total
Small surprises happen on closing. A modest cushion beyond the estimate keeps them from becoming a problem.
Next step
Know the full number before you commit to a closing date.
A purchase-readiness review confirms your cash-to-close, checks that your down payment can be verified, and flags anything that needs fixing while there is still time.
A real person reviews your scenario. This platform does not issue automated approvals, and no financing outcome is guaranteed.