This article is for general informational purposes only and does not constitute legal, financial, or tax advice. Closing costs vary by purchase price, property type, and transaction. Consult your lawyer, mortgage broker, and accountant before finalising your budget.
Who this is for: First-time buyers in Brampton, Mississauga, and the GTA who are preparing to make an offer and want to know exactly how much cash they need on closing day, beyond the down payment.
TL;DR
On a $700,000 resale home in Brampton or Mississauga, a first-time buyer with the minimum down payment may need roughly $10,000 to $17,000+ in closing cash on top of the down payment. The biggest cost is land transfer tax, even after the $4,000 rebate. If the mortgage is insured, Ontario RST on the CMHC premium adds about $2,096 in cash due at closing that most buyers do not know about.
The Number That Surprises Every First-Time Buyer
In short: The cash due on closing day is not just the down payment. Land transfer tax, legal fees, title insurance, and the Ontario sales tax on your CMHC premium all arrive as separate cash requirements, and most buyers do not know the full number until the week before closing.
A common pattern I see with first-time buyers in Brampton and Mississauga is this: they have the down payment ready. They have the pre-approval. They have found a home they want to buy. And then, about a week before closing, their lawyer calls with a number they were not expecting.
That number is the cash due on closing day. Not the down payment. The other cash.
Land transfer tax. Legal fees. Title insurance. Closing adjustments. Sometimes a home inspection they paid for before the offer was accepted. All of it due within days of getting the keys.
“I tell every buyer I work with: your down payment gets you in the door. Your closing costs keep you from getting stuck at the door.”
This is one of the first conversations I have in every consultation and in every first-time buyer seminar I run. Because finding out about it the week before closing is too late to adjust.
Land Transfer Tax: The Biggest Closing Cost Most Buyers Underestimate
In short: Ontario land transfer tax on a $700,000 purchase is $10,475. After the first-time buyer rebate of $4,000, $6,475 is still owed at closing. The rebate only fully covers LTT on homes up to $368,333.
Land transfer tax in Ontario is a provincial tax paid by the buyer at closing. It is calculated as a marginal tax on the purchase price, with different rates applying to different tiers of the price, as set out by the Government of Ontario.
On a $700,000 home purchase outside Toronto, the Ontario LTT is $10,475. That is the single largest closing cost for most first-time buyers in Brampton or Mississauga, and it arrives as a cash requirement on closing day.
| Purchase Price Tier | Rate | LTT on That Tier | Running Total |
|---|---|---|---|
| First $55,000 | 0.5% | $275 | $275 |
| $55,001 to $250,000 | 1.0% | $1,950 | $2,225 |
| $250,001 to $400,000 | 1.5% | $2,250 | $4,475 |
| $400,001 to $700,000 | 2.0% | $6,000 | |
| Ontario LTT on $700,000 | $10,475 | ||
| First-time buyer rebate | Max $4,000 | $4,000 off | |
| Net LTT after rebate (first-time buyer, $700K, outside Toronto) | $6,475 | ||
Table notes: Calculation based on a $700,000 residential resale purchase outside the City of Toronto. Ontario LTT governed by ontario.ca. First-time buyer rebate of up to $4,000 applied. Net LTT after rebate: $6,475. All figures verified May 12, 2026.
The First-Time Buyer Rebate: Real, But Not a Full Offset
Ontario offers a land transfer tax refund of up to $4,000 for eligible first-time buyers, per the ontario.ca Land Transfer Tax page. The rebate covers the full LTT on homes priced up to $368,333. For homes above that price, the first $4,000 of tax is rebated and the rest is owed at closing.
On a $700,000 purchase, the full rebate applies ($4,000 back) but $6,475 is still due. Many first-time buyers hear about the rebate and assume closing day is cheaper than it is. The rebate helps. It does not eliminate the cost.
To qualify for the Ontario LTT rebate, you must be a Canadian citizen or permanent resident, be 18 or older, occupy the home as your principal residence within 9 months of purchase, and have never owned a home or an interest in a home anywhere in the world. Your spouse or common-law partner must not have owned a home while being your spouse. Applications must be submitted within 18 months of the property’s registration.
One situation that catches buyers off guard: if you are purchasing with a co-buyer who is not a first-time buyer, the rebate may be reduced proportionately. Two buyers on title where only one qualifies typically means only 50% of the maximum $4,000 rebate applies. Ask your lawyer to confirm your eligibility and rebate amount before you finalise your budget.
Ontario LTT rates and first-time buyer rebate amounts are set by provincial policy and may change with future budgets. Verify the current rebate with your lawyer before closing.
If You Are Buying in Toronto: There Is a Second Land Transfer Tax
Buyers purchasing within the City of Toronto boundary pay both the Ontario LTT and a separate Toronto Municipal Land Transfer Tax. The MLTT uses the same tiered structure as the provincial tax. On a $700,000 Toronto purchase, both taxes apply, roughly doubling the LTT burden.
First-time buyers in Toronto are eligible for a Toronto MLTT rebate of up to $4,475, applied in addition to the provincial $4,000 rebate. Combined, that is up to $8,475 back for eligible Toronto first-time buyers. The remaining balance is still due on closing day.
Brampton and Mississauga are not within the City of Toronto boundary. Buyers in these cities pay Ontario LTT only.
Legal Fees and Disbursements on the Buy Side
In short: Buyer legal fees run $1,000 to $1,800 and disbursements add $500 to $700 on top. Always confirm whether your lawyer’s quote includes both. Budget $1,500 to $2,500 combined.
Every home purchase in Ontario requires a real estate lawyer to handle the closing. The lawyer searches title, reviews the agreement of purchase and sale, registers the transfer, and manages the flow of funds on closing day. This is not optional.
Buyer legal fees typically run between $1,000 and $1,800 depending on the law firm and the complexity of the transaction. Disbursements are separate and cover the lawyer’s out-of-pocket costs: title search fees, registration costs, title insurance (if billed through the lawyer), and administrative charges. Disbursements commonly add $500 to $700 on top of the base legal fee.
When you get a quote from a lawyer, always ask: does this number include disbursements? A quote of $1,200 that excludes disbursements can easily become $1,800 to $1,900 by closing day.
Title Insurance: Small Cost, Real Protection
In short: Title insurance is a one-time premium of $200 to $400 arranged through your lawyer at closing. It protects against title defects, fraud, and survey errors. Most buyers do not know it is coming until the lawyer’s statement arrives.
Title insurance is a one-time policy purchased at closing that protects the buyer and lender against title defects, survey errors, fraud, and encroachments that were not detected before closing. Most lawyers in Ontario arrange it automatically. The cost is typically $200 to $400 depending on the purchase price and insurer.
It is not a large line item, but it belongs in the budget. Some buyers are surprised to see it on the statement of adjustments because nobody explained it before the lawyer called.
Home Inspection: Budget for It Before the Offer
In short: A home inspection costs $300 to $600 and is paid before closing, directly to the inspector. It belongs in the total cash-needed calculation even though it does not appear on the closing day statement.
A home inspection is typically arranged before or as a condition in an offer, not at closing. The cost runs $300 to $600 depending on the size and age of the property. It is paid directly to the inspector, usually by e-transfer on the day of the inspection.
In competitive markets, some buyers waive the inspection condition to strengthen their offer. Whether to do this is a decision that deserves a separate conversation. The point here is practical: the inspection cost comes out of pocket before closing, so it belongs in the total cash-needed calculation even if it does not appear on the closing day statement.
Closing Adjustments: The Small Lines That Still Add Up
In short: Closing adjustments settle prepaid costs between buyer and seller. Property tax prepayments are the most common. Budget $200 to $1,000 combined as a starting estimate.
On closing day, the statement of adjustments settles any costs the seller has prepaid that carry past the closing date. Property taxes paid in advance are the most common example. If the seller has paid property taxes for a period beyond closing, the buyer reimburses that prepaid portion.
Utility adjustments, condo fee prepayments, and fuel prepayments (for oil-heated homes) can also appear here. These are usually small, $200 to $800 combined, but they are real cash due at closing and they vary by property and closing date.
CMHC Mortgage Insurance: One Part Added to Your Mortgage, One Part Cash at Closing
In short: If your down payment is under 20%, the CMHC premium is added to your mortgage balance, but Ontario RST on that premium (about 8%) is cash due at closing. On a $700,000 purchase with minimum down, that is approximately $2,096 that most buyers do not budget for.
This section only applies if your down payment is less than 20% of the purchase price. If you are putting 20% or more down, you can skip ahead to the closing costs table.
If your down payment is under 20%, your mortgage requires CMHC mortgage loan insurance. Most of the cost is handled by adding the premium to your mortgage balance. But there is one cash component that many buyers do not know about.
The CMHC premium itself is added to your insured loan. The premium tiers are: 4.0% of the insured loan for down payments of 5% to 9.99%, 3.1% for 10% to 14.99%, and 2.8% for 15% to 19.99%.
On a $700,000 home, the minimum down payment is $45,000. Here is how that breaks down: 5% on the first $500,000 is $25,000, plus 10% on the remaining $200,000 is $20,000. The insured loan is $655,000 and the CMHC premium at 4.0% is $26,200, which is added to your mortgage balance.
The cash part is the Ontario provincial sales tax on that premium. In Ontario, insurance premiums are subject to 8% provincial sales tax (RST), as confirmed by the Ontario Ministry of Finance RST rules, and that RST cannot be added to your mortgage loan. It is due in cash on closing day. On a $700,000 purchase with the minimum down payment, the Ontario RST on the CMHC premium is approximately $2,096.
Confirm your exact RST figure with your mortgage broker and lawyer before closing. It is a small line compared to land transfer tax, but it is real cash that does not always make it onto a buyer’s radar until the final statement arrives.
What First-Time Buyers in Brampton and Mississauga Actually Owe on Closing Day
In short: On a $700,000 resale purchase outside Toronto with minimum down payment, total closing cash ranges from roughly $10,000 to $17,000+ depending on legal fees, adjustments, and whether the mortgage is insured.
This table summarises the typical closing costs for a $700,000 resale home purchase outside Toronto by a first-time buyer. Figures are estimates only. Your actual costs depend on your purchase price, property type, lawyer, and closing date.
| Closing Cost | Estimated Range | Note |
|---|---|---|
| Ontario Land Transfer Tax | $4,475 to $10,475+ | Based on $500K to $700K; first-time buyer rebate reduces by up to $4,000 |
| Buyer legal fees + disbursements | $1,500 to $2,500 | Confirm with your lawyer; get a quote that includes disbursements |
| Title insurance | $200 to $400 | One-time premium paid at closing via lawyer |
| Home inspection | $300 to $600 | Paid before closing; strongly recommended for resale |
| Closing adjustments | $200 to $1,000 | Property tax and utility prepayments settled on closing day |
| CMHC mortgage insurance premium | 4.0% of insured loan (min down scenario) | Added to mortgage, not cash at closing. On $700K with $45K down: ~$26,200 added to loan. |
| Ontario RST on CMHC premium | ~$2,096 (8% of $26,200) | Cash due at closing. Cannot be added to mortgage. Confirm with lawyer. |
| Typical cash needed at closing (outside Toronto, $700K home, first-time buyer with $4K rebate, min down) | $10,000 to $17,000+ | |
Table notes: Figures are illustrative for a $700,000 resale purchase in Brampton or Mississauga by an eligible first-time buyer. LTT figures reflect Ontario governing rates verified May 2026. CMHC premium is added to mortgage; Ontario RST on that premium is cash at closing. Toronto buyers pay an additional MLTT. This article covers resale purchases. New build and pre-construction purchases have different closing cost structures including HST adjustments. Confirm all figures with your lawyer before closing.
You now know the full list: land transfer tax after the rebate, legal fees and disbursements, title insurance, closing adjustments, and the Ontario sales tax on the CMHC premium that catches insured buyers off guard. What you do not have yet is your number, built from your actual purchase price, your down payment amount, and your first-time buyer eligibility status. That is the ten-minute calculation that means no surprises when your lawyer calls the week before closing.
Want to Know Your Exact Closing Cost Number Before You Make an Offer?
Before you put in an offer, let’s run the full cash-needed calculation with your actual purchase price, down payment, and first-time buyer eligibility. It takes ten minutes and it means no surprises on closing day.
Call: 647-892-2411
Email: mail@myshahteam.com
What This Means for You
If you are preparing to make an offer on your first home in Brampton or Mississauga, the down payment is not the only cash you need to have ready. Budget for land transfer tax after the rebate, legal fees including disbursements, title insurance, closing adjustments, and the Ontario sales tax on your CMHC premium if your down payment is under 20%. On a $700,000 purchase outside Toronto with the minimum down payment, that is roughly $10,000 to $17,000 in additional cash on top of your down payment.
The buyers who are caught off guard are not the ones who could not afford the home. They are the ones who did not know the number in advance. Knowing it before you make your offer changes how you plan, how you time your savings, and how calmly you arrive at closing day.
Key Takeaways
- Land transfer tax is the largest closing cost for most first-time buyers in Ontario. On a $700,000 purchase outside Toronto, it is $10,475 before the rebate. The first-time buyer rebate covers the full LTT only on homes up to $368,333; above that, the rebate is capped at $4,000 and $6,475 remains owed at closing.
- Legal fees and disbursements are separate items. Always ask whether your lawyer’s quote includes disbursements. Budget $1,500 to $2,500 combined as a starting estimate.
- Closing costs in Brampton and Mississauga do not include Toronto’s Municipal Land Transfer Tax. That second tax only applies to purchases within the City of Toronto boundary.
- CMHC mortgage insurance premium is added to your mortgage, not paid in cash at closing. But the Ontario sales tax on that premium (about 8%) is cash due at closing and cannot be added to the loan. On a $700,000 purchase with minimum down, that is roughly $2,096 in cash most buyers do not budget for.
- If you are buying with a co-purchaser who is not a first-time buyer, the Ontario LTT rebate may be reduced proportionately. Two buyers on title where only one qualifies typically means only 50% of the maximum rebate applies. Confirm your rebate eligibility with your lawyer before closing.
The Bottom Line
The down payment is the number everyone focuses on. The closing costs are the number that quietly determines whether the purchase goes smoothly or creates a cash crisis in the final week.
The risk is not that first-time buyers in Brampton or Mississauga cannot afford the home. The risk is that they arrive at closing week with the down payment ready and the closing costs not accounted for, because nobody walked them through the full cash stack before the offer went in.
Frequently Asked Questions
How much are closing costs for first-time buyers in Ontario?
Typical closing costs for a first-time buyer purchasing a $700,000 resale home outside Toronto with the minimum down payment can range from roughly $10,000 to $17,000+ on top of the down payment. The largest single cost is land transfer tax. After the first-time buyer rebate of $4,000, the net LTT on a $700,000 purchase is $6,475. If your down payment is under 20%, you also need to budget for Ontario RST on the CMHC premium, which is approximately $2,096 in this example. Legal fees, title insurance, and closing adjustments make up the remainder.
Do first-time buyers in Ontario get a land transfer tax rebate?
Yes. Eligible first-time buyers in Ontario receive a rebate of up to $4,000 on provincial land transfer tax. The rebate covers the full LTT on homes priced up to $368,333. For homes above that price, the $4,000 rebate applies and the remaining LTT balance is owed at closing. To qualify, you must be a Canadian citizen or permanent resident, 18 or older, never have owned a home anywhere in the world, and your spouse or common-law partner must not have owned a home while being your partner.
Do Brampton and Mississauga buyers pay Toronto’s Municipal Land Transfer Tax?
No. The Toronto Municipal Land Transfer Tax applies only to purchases within the City of Toronto boundary. Brampton and Mississauga are separate cities in Peel Region and are not subject to the Toronto MLTT. Buyers in Brampton and Mississauga pay Ontario provincial LTT only.
Is CMHC mortgage insurance a cash cost on closing day?
Partly. The CMHC insurance premium itself is added to your mortgage balance, not paid as cash at closing. However, in Ontario the provincial sales tax on that premium (8% RST) is a cash cost at closing and cannot be added to the loan. On a $700,000 purchase with the minimum down payment of $45,000, the CMHC premium is approximately $26,200 and the Ontario RST on that premium is approximately $2,096, due in cash at closing. Confirm the exact figure with your mortgage broker and lawyer.
When do closing costs need to be paid?
Most closing costs are due on closing day. Your lawyer will provide a final statement of adjustments a few days before closing showing the exact amounts. Home inspection fees are typically paid before closing day, directly to the inspector at the time of the inspection. Title insurance is arranged through your lawyer and paid at closing as part of the legal fees. The down payment and all closing costs must be in your lawyer’s trust account before the transaction can close.
You now know what closing day actually costs in Brampton and Mississauga: the land transfer tax number, the legal fee range, the title insurance, the adjustments, and the cash component of CMHC insurance that most buyers never see coming. The one thing you do not have yet is your personal closing cost figure calculated against your exact purchase price and down payment. That is the conversation that makes the difference between a confident offer and a stressful closing week.
Ready to Make Your First Offer? Let’s Make Sure the Cash Is Ready Too.
Knowing your closing cost number before you buy is the difference between a confident offer and a stressful closing week. I cover this in every first-time buyer seminar and every one-on-one consultation, because it is one of the things nobody tells you until it is almost too late.
If you are buying your first home in Brampton, Mississauga, or anywhere in the GTA, let’s talk before you make your offer.
Call Gaurang Shah: 647-892-2411
Consultations are available in English, Hindi, Gujarati, Marathi, and Punjabi.
References
- Government of Ontario. Calculating Land Transfer Tax. Governing source for Ontario LTT tiered rates and formula. ontario.ca
- Government of Ontario. Land Transfer Tax Refund for First-Time Homebuyers. Rebate amount, eligibility conditions, co-purchaser rules, and application timeline. ontario.ca
- City of Toronto. Municipal Land Transfer Tax. Toronto MLTT rates and first-time buyer rebate of up to $4,475. toronto.ca
- Canada Mortgage and Housing Corporation (CMHC). Mortgage Loan Insurance for Consumers. CMHC premium tiers and insured mortgage framework. cmhc-schl.gc.ca
- Government of Ontario, Ministry of Finance. Insurance premiums subject to Ontario Retail Sales Tax (RST) at 8%. ontario.ca
Note: All LTT and CMHC figures are estimates based on governing-source formulas verified May 2026. Ontario RST on CMHC premium is approximately 8% of the premium amount and is cash due at closing. Confirm exact closing costs with your lawyer and mortgage professional before finalising your budget. This article covers resale purchases only. New build and pre-construction closing costs differ.
