Written by Kate Broddick   |   Posted on   |   443 views

Land Transfer Tax (LTT):

When you buy land (or a house that sits on a piece of land that you will also be purchasing), you pay land transfer tax to the province of Ontario when the transaction closes. It is calculated based on the purchase price of the property and can vary depending on the municipality. For example, if the home you’re buying is in Toronto, they also have a Municipal Land Transfer Tax. 

The Land Transfer Tax is one of the most substantial closing costs in Ontario.

The tax rates on land transfers in Ontario are as follows (however these numbers may change in time, so be sure to double check!):

  • 0.5% on amounts up to and including $55,000
  • 1.0% on amounts exceeding $55,000, up to and including $250,000
  • 1.5% on amounts exceeding $250,000, up to and including $400,000
  • 2.0% on amounts exceeding $400,000.

First-time homebuyers may be eligible for a rebate, reducing their LTT burden.




Adjustments include payments made between the buyer and seller to cover items like property taxes or utility bills that may have been prepaid by the seller. These adjustments ensure that both parties are responsible for their respective portions.

Property Insurance:

You’ll need to secure homeowner’s insurance before closing the deal. The cost varies based on factors like the property’s location and the extent of coverage.  Speak to your insurance provider about possible discounts you may be eligible for if you bundle your coverage with your car or other types of insurance.

Mortgage Insurance:

If your down payment is less than 20% of the purchase price, you’ll need to pay for mortgage default insurance. This protects the lender in case you default on your mortgage payments.  

RELATED:  You can learn more about your various insurance needs on our blog: Guide to Home Insurance for Canadians

It’s essential to budget for these closing costs when planning your home purchase in Ontario. The total amount can vary widely depending on factors like the property’s purchase price and location. It’s a good practice to work closely with your real estate agent and legal advisor to understand the specific costs you’ll incur during your home buying process. 

While it may seem like a daunting undertaking, your Team Kate REALTOR® has done this hundreds of times and knows how to walk you through it, step-by-step.  Buying a home doesn’t have to be a stressful experience! 

*All information provided by the Brantford Regional Real Estate Association (BRREA) and ITSO for the highest number of completed transactions since January 1, 2015. All Brantford MLS® House Listings come from the various systems operated by Real Estate Boards and Associations across Canada. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used underlicense. The trademarks MLS®, Multiple Listing Service®, and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.



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