Plan for roughly 1.5% to 4% of the purchase price in closing costs on top of your down payment. The largest item is Ontario land transfer tax: $4,475 on a $400,000 home and $10,475 on a $700,000 home. Kitchener, Waterloo and Cambridge have no municipal land transfer tax, and eligible first-time buyers get up to $4,000 back.
What counts as a closing cost?
Closing costs are everything you pay at or around closing that is not the purchase price or your down payment. Your real estate lawyer collects most of them on closing day, so you need the funds ready in addition to your down payment.
How much is Ontario land transfer tax in Kitchener, Waterloo and Cambridge?
Land transfer tax is graduated. You pay a different rate on each slice of the price:
- 0.5% on the first $55,000
- 1.0% from $55,000 to $250,000
- 1.5% from $250,000 to $400,000
- 2.0% from $400,000 to $2,000,000
- 2.5% above $2,000,000 (one- or two-unit residential only)
Only the provincial tax applies here. Toronto adds its own municipal land transfer tax; Kitchener, Waterloo and Cambridge do not.
| Purchase price | Ontario land transfer tax | After first-time buyer refund |
|---|---|---|
| $400,000 | $4,475 | $475 |
| $500,000 | $6,475 | $2,475 |
| $600,000 | $8,475 | $4,475 |
| $700,000 | $10,475 | $6,475 |
| $800,000 | $12,475 | $8,475 |
| $900,000 | $14,475 | $10,475 |
| $1,000,000 | $16,475 | $12,475 |
Rates per Ontario.ca. The refund is up to $4,000 and fully covers the tax on homes up to about $368,000. Eligibility rules apply, including that neither you nor your spouse has owned a home anywhere in the world.
What other closing costs should I budget for?
- Legal fees: typically $1,500 to $2,500 for the lawyer, who reviews the agreement, searches title and registers the transfer.
- Home inspection: typically $400 to $600, paid before you firm up the offer.
- Title insurance: a one-time premium arranged by your lawyer.
- Adjustments: you reimburse the seller for prepaid property tax or utilities for the period after closing.
- Mortgage default insurance: if you put down less than 20%, the premium is normally added to your mortgage rather than paid in cash.
What does it add up to on a $700,000 home?
The minimum down payment on $700,000 is $45,000 (5% of the first $500,000 plus 10% of the remaining $200,000). Closing costs then add roughly $10,500 to $28,000 at the 1.5% to 4% planning range, with land transfer tax of $10,475 as the biggest piece. A first-time buyer who qualifies for the refund cuts that tax to $6,475.
Your actual number depends on price, down payment and whether you qualify for the refund. Ask Mario for an estimate at your price range.
Related guides
General information, not legal, tax or financial advice. Rates, limits and rules change; confirm with your lawyer, lender or accountant.
Closing costs when buying a home in Kitchener-Waterloo: frequently asked questions
A common planning range is 1.5% to 4% of the purchase price, on top of your down payment. Land transfer tax is the largest single item.
No. Only Toronto charges a municipal land transfer tax in addition to Ontario's provincial tax.
$10,475, or $6,475 for a first-time buyer who receives the full $4,000 refund.
Mostly on closing day, through your real estate lawyer. The home inspection is paid earlier, and your deposit is paid with your offer.
Questions about your situation?
Mario gives straight answers on buying, selling and investing across Kitchener, Waterloo and Cambridge.