Closing Costs in Ontario Explained: What York Region Buyers and Sellers Actually Pay
Closing costs in Ontario are the fees and taxes due at closing beyond the purchase or sale price itself, and they apply differently depending on whether someone is buying, selling, or both at once. Knowing which costs apply to which side of the transaction avoids surprises at the end.
Costs That Generally Apply to Buyers
- Land transfer tax, calculated on the purchase price
- Legal fees for the purchase closing
- Title insurance
- Home inspection, if one is obtained
- Adjustments for prepaid items like property tax, prorated as of the closing date
Costs That Generally Apply to Sellers
- Real estate commission, negotiated as part of the listing agreement
- Legal fees for the sale closing
- Mortgage discharge costs, if there is an existing mortgage
- HST applicable on real estate commission
For Move-Up Buyers and Downsizers Doing Both at Once
Anyone selling one property and buying another in the same general timeframe faces both sets of costs. See What Is a Seller’s Net Sheet for the selling side and How Much Does It Actually Cost to Move Up in York Region for a worked example that layers both sides together.
Quick Answers
How much should I budget for closing costs as a buyer?
This varies by purchase price and specific circumstances. Land transfer tax, legal fees, and title insurance are the most common components, and a real estate lawyer can provide an exact figure for a specific purchase.
Do sellers pay land transfer tax?
No, land transfer tax applies to the buyer on the purchase, not to the seller.
Is commission a closing cost or something separate?
Commission is typically deducted from sale proceeds at closing, so it functions as a closing cost from the seller’s perspective even though it is negotiated separately in the listing agreement.
What is an adjustment at closing?
An adjustment prorates costs like already-paid property tax between buyer and seller as of the closing date, so each party pays only for their portion of ownership.
Should I get an exact closing cost estimate before I commit to a purchase or sale?
Yes. A real estate lawyer can provide a specific estimate based on the actual transaction, which is more reliable than a general guide like this one.
Want the numbers that apply to your specific home or move? Get a free, no-obligation home value estimate at pambechard.com. Pam Bechard, Listing Strategist with Royal LePage RCR Realty, will follow up directly with the comparable sales behind your number.
About Pam Bechard
Pam Bechard is a Listing Strategist with Royal LePage RCR Realty serving York Region and South Simcoe, Ontario. With nearly 15 years of experience, she works with buyers, sellers, and downsizers navigating the YRSS market. Her approach is data-first, pressure-free, and grounded in verified local market intelligence.
Get your free home value estimate → pambechard.com · 905-716-2736 · pambechard@royallepage.ca
