Closing Costs in Ontario 2026: What GTA Buyers Actually Pay (Mississauga vs Toronto)

The down payment gets all the attention, but it is the closing costs that catch GTA buyers off guard. On a $1,050,000 townhouse in Clarkson, you should have roughly $21,000 to $22,000 in cash ready on closing day, on top of your down payment. Buy at the same price in the Junction instead and that number jumps by about $14,000, because Toronto charges its own land transfer tax that Mississauga buyers never pay.

Here is the full list of what you actually pay at closing in 2026, which costs are identical whether you buy in the 905 or the 416, and the two that genuinely differ between Mississauga and Toronto.

The short version

• Most closing costs are the same across the GTA: legal fees, title insurance, the home inspection, and adjustments.
• Land transfer tax is the one big difference. Toronto charges a municipal land transfer tax on top of the provincial one, which roughly doubles the bill. Mississauga and the rest of the 905 pay only the provincial tax.
• Budget roughly 1.5% to 2% of the purchase price in Mississauga, and closer to 3% to 4% in Toronto, with land transfer tax driving almost all of that gap.
• Closing costs are paid in cash through your real estate lawyer. They cannot be rolled into your mortgage.
• First-time buyers can claw back up to $4,000 in Ontario, or up to $8,475 in Toronto, through the land transfer tax rebate.

The full list of GTA closing costs

Here is everything that can land on your closing statement. Unless noted, the cost is the same whether you buy in Mississauga or Toronto.

Land transfer tax. Almost always the largest line item. This is the cost that differs between the 905 and the 416, so it gets its own section below.

Legal fees and disbursements: $1,500 to $2,500. Your lawyer reviews the agreement, searches title, registers the transfer, and handles the closing. Disbursements (title search, software, courier, registration) are bundled in. Same across the GTA.

Title insurance: $300 to $500, one time. A one-time premium that protects you against title fraud, survey issues, and unknown liens. Your lawyer arranges it. Same across the GTA.

Home inspection: $400 to $700. Paid before closing, not at closing, since you want the report before your conditions are waived. Same across the GTA.

Status certificate review (condos only): $100 to $300. If you are buying a condo, your lawyer reviews the status certificate to check the reserve fund, special assessments, and rules. Same across the GTA.

Property tax and utility adjustments: varies. You reimburse the seller for anything they prepaid past your closing date, such as property taxes or a utility account. On a closing late in the year this can be a few thousand dollars; early in the year it is minor. Varies by property and closing date.

Home insurance: first payment due before closing. Your lender will not release funds without proof of a binder. This is a recurring cost rather than a one-time fee, but the first payment lands around closing. Same across the GTA.

Mortgage default insurance PST: only if you put less than 20% down. The insurance premium itself rides on your mortgage, but Ontario charges 8% PST on it, and that PST is due in cash at closing. On a high-ratio purchase this can be a few thousand dollars that buyers forget to plan for. Same rule across the GTA.

HST: new builds only. Resale homes are exempt. If you are buying pre-construction, HST is a separate and much larger topic. Same rule across the GTA.

The big difference: land transfer tax in Mississauga vs Toronto

This is the single reason closing costs in Toronto run so much higher than in the 905.

Every Ontario buyer pays a provincial land transfer tax on a sliding scale by price. The City of Toronto is the only municipality in the province that charges its own land transfer tax on top of that. For homes up to $3M, the Toronto municipal tax mirrors the provincial brackets exactly, which effectively doubles your land transfer tax bill.

Mississauga buyers pay the provincial tax only. Toronto buyers (including Etobicoke, the Junction, North York, Scarborough, East York, and York) pay both.

Land transfer tax by price point, 2026

Figures are total land transfer tax before any first-time buyer rebate. Toronto column combines the provincial and municipal tax.

Same price, two very different bills

Take an identical $1,100,000 purchase. In a Clarkson detached or a Lorne Park starter home, your land transfer tax is $18,475, provincial only. The same $1,100,000 on a semi in the Junction is $18,475 provincial plus $18,475 municipal, for $36,950 total. That is an $18,475 swing on the exact same price, before you have paid your lawyer a cent.

Two costs that quietly differ after you close

These are not closing-day costs, but they are real differences between Mississauga and Toronto that buyers should weigh.

1. Property tax rate. Toronto's combined residential rate is among the lowest in Ontario at roughly 0.77% in 2026, while Mississauga's sits a touch higher around 0.8%. Because Toronto home values tend to be higher, the actual annual bills often land in a similar range. Over many years a lower Toronto rate can chip away at the land transfer tax gap, but it takes a long time to catch up.

2. Toronto Vacant Home Tax. Toronto charges 3% of a property's assessed value if it sits empty for six months or more in a year, and every Toronto homeowner has to file an occupancy declaration each year (usually by late February) even if they live there full time. Miss the declaration and the city can deem the home vacant by default. Mississauga has no equivalent tax. This matters most for buyers who will not move in right away, such as investors or anyone closing well ahead of a move.

Three real GTA scenarios

1. Clarkson townhouse, $1,050,000, move-up buyer

Land transfer tax (provincial only): $17,475. Add a lawyer at about $2,000, title insurance around $400, and roughly $1,500 in adjustments. Cash needed at closing: about $21,400, with the home inspection (around $500) already paid earlier. No municipal land transfer tax, because Clarkson is in Mississauga.

2. Lorne Park detached, $2,000,000, move-up family

Land transfer tax (provincial only): $36,475. Add a lawyer at about $2,500, title insurance around $500, and roughly $2,500 in adjustments. Cash needed at closing: about $42,000, plus the inspection. Lorne Park detached homes have been averaging close to $1.85M to $2.3M, so this is a realistic entry point. Still no municipal land transfer tax.

3. The Junction semi, $1,100,000, first-time buyer

Land transfer tax: $18,475 provincial plus $18,475 municipal, for $36,950. As a first-time buyer you claw back $4,000 from Ontario and $4,475 from Toronto, so the net is $28,475. Add a lawyer at about $2,000, title insurance around $400, and roughly $1,500 in adjustments. Cash needed at closing: about $32,400.

For contrast, that same first-time buyer paying $1,100,000 in Clarkson would owe $18,475 in provincial tax, minus the $4,000 Ontario rebate, for $14,475 net, and total closing cash of roughly $18,400. The Junction costs about $14,000 more at closing on the same price, even after Toronto's extra rebate.

Three things buyers commonly get wrong

“I will roll my closing costs into the mortgage.” You cannot. Land transfer tax, legal fees, and adjustments are all paid in cash at closing. Plan for them separately from your down payment.

“Closing costs are about 1.5% of the price.” True in Mississauga. In Toronto the second land transfer tax pushes total closing costs closer to 3% to 4%, so the same rule of thumb undershoots badly inside the 416.

“Title insurance and home insurance are the same thing.” They are not. Title insurance is a one-time premium protecting your ownership; home insurance is an ongoing policy protecting the building. You need both, and lenders require proof of home insurance before closing.

“Putting less than 20% down only affects my mortgage.” The mortgage default insurance premium does ride on your loan, but the 8% Ontario PST on that premium is due in cash at closing. On a high-ratio purchase that can be several thousand dollars.

Buying in Mississauga or west Toronto? Let's map out your real number before you offer

Closing costs should never be the thing that surprises you on closing day. Whether you are eyeing a townhouse in Clarkson, a detached home in Lorne Park, or a semi in the Junction, I can put together a personalized closing cost estimate so you know exactly what you need at the table, down to the land transfer tax, the rebate you qualify for, and the adjustments.

Book a 20-minute consultation and I will walk you through your full closing cost picture before you write your offer.

This is the closing costs guide I promised in the land transfer tax post. Subscribe to be notified when the next one goes live.

General information only, current as of 2026. Not legal or tax advice. Closing cost amounts vary by property, lender, and lawyer. Always confirm final amounts with your real estate lawyer before closing.

Sources

• Government of Ontario: Land Transfer Tax
• Government of Ontario: Land Transfer Tax Refunds and Rebates
• City of Toronto: Municipal Land Transfer Tax
• City of Toronto: Vacant Home Tax