Closing costs in Toronto

Closing cost in Toronto reads as a single line on the statement, but it is produced by a bracket table. On a $1,000,000 purchase the transfer levy alone is $32,950; add the registration tariff of $229, the legal work, title insurance and the vendor's adjustments, and the buyer wires $40,329 beyond the price itself. Expressed as a share of price that is 4.03%, and it scales unevenly: because the table is marginal, the last dollar of a $1,000,000 purchase here is taxed at 2% while the first dollar is taxed at 0.5%. The same building at $5,000,000 pays $192,950 in land transfer tax, which is why an offer written without the statute in the model is an offer written blind.

The authority is not a guideline or an industry convention. Land Transfer Tax Act, R.S.O. 1990, c. L.6 imposes the charge at s. 2(1) — general rate on the value of the consideration, and the schedule transcribed on this page took effect 2017-01-01. Toronto adds its own layer under City of Toronto Municipal Code, Chapter 760 (Land Transfer Tax), § 760-3 — rates on the value of the consideration, non-residential, effective 2023-01-01. Toronto's MLTT is charged in addition to Ontario's provincial land transfer tax and mirrors its bracket structure for non-residential property, which doubles the statutory levy on the same consideration. Because a budget can rewrite a bracket in a single sentence, this site versions every table rather than editing it: a closing dated before an amendment is still priced against the schedule that was in force on the day title moved, and the effective date sits on the page and on the printed statement.

Ontario is the only province where a purchase inside one city can carry the provincial levy twice over: Toronto charges a municipal land transfer tax on the same consideration, on the same closing day, using its own bracket table. That single feature is what makes Toronto unlike its neighbours. In a jurisdiction where the levy is a percentage of consideration, the arithmetic is dull and predictable; where a municipality legislates its own schedule, or where the charge is measured against assessed value instead of the price actually paid, the same transaction produces a materially different statement. A buyer moving a portfolio across provinces and territories cannot carry one rule of thumb from the last deal, and a lender underwriting cash-to-close nationally cannot use one blended assumption without being wrong in both directions.

Registration is the second, quieter cost. In Ontario the tariff under Land Registration Reform Act — Ontario Reg. 19/99 (Electronic Registration) charges $82 to register the transfer and $82 to register a mortgage. A title search adds $65 per parcel, and a multi-parcel assembly multiplies that line by the number of PINs rather than by the value. On the $1,000,000 benchmark, registration and search together come to $229 — small against the transfer levy, and large against the assumption that registry costs round to zero.

The sale tax treatment is where most closing statements go wrong, and it is not a Ontario rule at all — it is federal. Excise Tax Act (Canada) imposes GST/HST at 13% on a taxable supply of commercial real property, but s. 165; s. 221(2) (self-assessment by a registrant purchaser) lets a registrant purchaser self-assess and remit the tax directly instead of funding it through the lawyer's trust account. The tax is still owed; it simply does not appear in the wire. On the benchmark purchase the difference between funding it and self-assessing it is $130,000 of working capital on closing day. Get the registration status confirmed in writing before the statement of adjustments is drafted, because reversing the entry after funds move is a tax problem, not a bookkeeping one.

Non-resident purchasers face a separate question. Ontario's non-resident speculation tax applies to designated residential land, not to commercial property. That means a foreign buyer of a commercial asset in Ontario pays the same statutory levy as a domestic one, and the diligence effort shifts from tax exposure to corporate authority, withholding on the vendor's side, and the residency certificates the lawyer will require before closing.

Legal cost is the one line on this page that is genuinely a market, not a statute. A straightforward commercial closing in Ontario is typically quoted between $2,500 and $9,500, and the spread is explained almost entirely by structure rather than by hourly rate: a single-parcel purchase with a conventional mortgage sits at the bottom, and a multi-parcel assembly with assumed leases, a vendor take-back and an environmental holdback sits above the top. Escrowlor prints your own number here rather than an average, because a statement with someone else's fee in it is not your statement.

Adjustments are the last item and the most commonly under-modelled. Realty taxes paid by the vendor for the balance of the year are credited back on closing, as are prepaid utilities, service contracts and, in a leased asset, prepaid rent and the deposits that must move with title. None of these are costs in an accounting sense — they are timing — but they are cash on closing day, and a buyer funding to the dollar discovers the gap at the worst possible hour. Nothing here is negotiable, which is precisely why it belongs in the offer, not the surprise column.

Geographically, the Ontario market that generates most of these statements is concentrated: Toronto, Ottawa, Hamilton, Mississauga, Brampton, London account for the majority of commercial registrations in the province or territory, and activity clusters in the industrial and mixed-use corridors around each of them rather than spreading evenly across the map. Toronto is the one municipality here with a charge of its own; everywhere else in the province or territory the schedule on the Ontario page is the answer. Publishing a URL for every town where the arithmetic is identical would be padding, and this network does not pad.

One practical warning about using any calculator, including this one. A transfer tax figure is a legal-grade number: an error of a tenth of a percent on an eight-figure purchase is a five-figure mistake, and the person who signs the statement of adjustments owns it. Every table on this page carries the statute, the section and the effective date so that the figure can be checked against the source rather than trusted. If Ontario amends its schedule, a new row is appended and this page shows both the new effective date and the arithmetic that follows from it. Corrections are logged with a date and never quietly overwritten.