Buying a home involves more than the price on the offer. For a standard financed purchase, Khan Law's legal fee and standard legal disbursements typically total $1,500 to $1,700, plus HST. Buyers should also budget for Ontario land transfer tax, title insurance, land-registration fees, searches, adjustments and any property-specific work.

For a $600,000 resale home outside Toronto, Ontario land transfer tax is $8,475 before any rebate. An eligible first-time homebuyer may receive up to a $4,000 Ontario refund, reducing the provincial land transfer tax to $4,475.

That distinction matters: a lawyer's fee is only one part of the money required to close.

Quick answer: A buyer of a typical Ontario resale property should ask for a written quote that separates the legal fee, HST, standard disbursements, title insurance, land-registration fees and transaction-specific charges. Land transfer tax and closing adjustments should be budgeted separately.

What do “legal fees” include when buying a home in Ontario?

People often use “legal fees” to describe every closing expense. In practice, the total is made up of different categories:

1. The lawyer's professional fee: payment for the legal work on the purchase and, if applicable, the mortgage.
2. Legal disbursements: third-party expenses incurred to complete the file, such as searches, registrations and other service charges. What is bundled into a quote varies by firm.
3. Land transfer tax: a provincial tax based mainly on the purchase price. Toronto imposes a separate municipal land transfer tax.
4. Title insurance: a policy commonly obtained on residential purchases. The premium depends on the property, price, policy and insurer.
5. Adjustments: amounts credited between buyer and seller for items such as property taxes, condominium fees, fuel or prepaid expenses.
6. Transaction-specific costs: additional work or charges arising from the contract, financing, property type or title.

Before retaining a lawyer, ask whether the quote includes the mortgage work, standard searches and standard disbursements, and which items will appear separately. Comparing only the headline legal fee can produce a misleading result.

Khan Law's Ontario home-purchase cost breakdown

The following is a planning guide, not a binding quote. Pricing and third-party charges can change, and every transaction has its own facts.

1. Legal fee and standard legal disbursements: typically $1,500-$1,700 plus HST

For a typical Ontario residential purchase, Khan Law generally quotes $1,500 to $1,700 plus HST for the legal fee and standard legal disbursements. The scope should be confirmed in writing for the particular file.

The lawyer's work commonly includes:

• reviewing the Agreement of Purchase and Sale and relevant documents;
• searching title and identifying registered interests;
• communicating with the lender and seller's lawyer;
• preparing and explaining closing and mortgage documents;
• arranging signing and receiving closing funds;
• completing the transfer and mortgage registrations; and
• reporting to the buyer and lender after closing.

Extra work may be required for a condominium, new build, private mortgage, bridge loan, assignment, tenancy issue, title defect or other non-standard feature.

2. Ontario land transfer tax

Ontario land transfer tax is paid when an interest in land is acquired. For most residential purchases, it is calculated using marginal brackets: each rate applies only to the part of the purchase price within that bracket.

For a property containing one or two single-family residences, the general Ontario rates are:

Different rules can apply to some property types and transactions. A lawyer should confirm the tax based on the agreement, property and purchasers.

3. Toronto municipal land transfer tax

If the property is in the City of Toronto, the buyer generally pays Toronto Municipal Land Transfer Tax in addition to Ontario land transfer tax. For many homes, the municipal calculation broadly mirrors the provincial brackets, although Toronto has additional higher-value residential brackets.

Toronto also charges an MLTT administration fee. As of this article's review date, the City lists the fee as $102.56 plus HST. City fees are reviewed periodically, so confirm the amount for the closing date.

4. Title insurance

Title insurance is commonly used in Ontario residential transactions. It may protect against certain covered title defects, fraud, encroachments, survey problems, liens and other risks, subject to the policy's terms, exclusions and limits.

The premium is not a fixed government fee. It varies by insurer, purchase price, property type, mortgage and coverage. As a rough planning range used in many standard transactions, Khan Law advises buyers to allow approximately $80 to $100 per $100,000 of purchase price, but the actual premium must be confirmed for the property.

5. Land-registration fees

Ontario charges a fee to register each electronic instrument. Effective November 3, 2025, the fee is $85 per electronic instrument. A standard financed purchase usually requires at least two registrations:

• the transfer to the buyer: $85; and
• the mortgage/charge in favour of the lender: $85.

That produces a typical registration total of $170, before any additional instruments. This is a government charge and may change.

6. Electronic closing platform and lender-related charges

Where mortgage instructions and closing documents are managed through an electronic legal platform, a technology or transaction charge may apply. Khan Law currently identifies a $285 Unity platform charge on applicable financed purchase files.

This is not a government tax. The quote should state whether it applies, what it covers and whether HST is added. Lenders may also have their own appraisal, processing, courier or discharge-related requirements that are outside the lawyer's control.

7. Searches and certificates

Depending on the file, a lawyer may order execution searches, tax information, writ searches, corporate searches, off-title searches or other certificates. Khan Law recommends allowing approximately $100 to $200 for standard searches, while recognizing that the actual amount depends on the property, municipality, purchasers and issues discovered.

8. Adjustments on closing

Adjustments are often overlooked because they are not legal fees or taxes. They allocate expenses between buyer and seller as of the closing date.

For example, if the seller prepaid property taxes beyond closing, the buyer may reimburse the seller for the post-closing portion. Condominium common expenses, prepaid fuel and other contract items may also be adjusted. These amounts appear on the statement of adjustments and can move the final funds required up or down.

9. Property- and transaction-specific costs

Additional fees or disbursements may arise where the transaction includes:

• a condominium status certificate review;
• a builder agreement, new-home adjustments or development charges;
• an assignment of an agreement of purchase and sale;
• a private lender, second mortgage or multiple lenders;
• bridge financing;
• an existing tenant or vacant-possession issue;
• rental equipment contracts;
• a title defect, encroachment, lien or boundary concern;
• a power of attorney, corporation or trust;
• a non-resident or foreign purchaser; or
• an urgent or rescheduled closing.

Tell the lawyer about these features when requesting the quote. A quote based on a standard resale purchase cannot reliably price a non-standard file.

Worked example: $600,000 home outside Toronto

Assume an eligible first-time buyer purchases a $600,000 freehold resale home in Milton with one institutional mortgage. There are no unusual title issues or adjustments. The following example uses representative Khan Law planning figures and current government registration fees.

The HST line above applies 13% only to the $1,550 example line. In an actual quote, HST treatment depends on how each fee or disbursement is characterized and invoiced. The table does not include the down payment, lender adjustments, property-tax or other statement-of-adjustments amounts, home insurance, moving expenses, inspections or transaction-specific work.

The $8,475 Ontario LTT calculation

For a $600,000 purchase outside Toronto:

• 0.5% of the first $55,000 = $275
• 1.0% of the next $195,000 = $1,950
• 1.5% of the next $150,000 = $2,250
• 2.0% of the remaining $200,000 = $4,000

Total Ontario land transfer tax: $275 + $1,950 + $2,250 + $4,000 = $8,475.

After the maximum $4,000 first-time homebuyer refund, an eligible buyer would pay $4,475 in net provincial land transfer tax.

Who qualifies for Ontario's first-time homebuyer land transfer tax refund?

The maximum Ontario refund is $4,000 for qualifying registrations and dispositions. Eligibility is more specific than simply “this is my first purchase.” Among other requirements, the purchaser generally must:

• be at least 18 years old;
• have never owned an eligible home or an interest in one anywhere in the world;
• occupy the home as a principal residence within nine months;
• meet the spousal ownership rules; and
• be a Canadian citizen or permanent resident, or meet the applicable timing rules for becoming one.

Where there is more than one buyer, the available refund may depend on each person's eligibility and ownership share. Do not assume the full refund applies until the lawyer has reviewed all purchasers' circumstances.

Eligible Toronto buyers may also qualify for a municipal rebate of up to $4,475. The provincial and Toronto programs are separate.

A 2026 note for first-time buyers purchasing a new home

Land transfer tax relief is different from GST/HST relief. Eligible first-time buyers of certain new or substantially renovated homes may now qualify for federal and Ontario first-time homebuyer GST/HST rebates. The federal program can rebate the federal portion for qualifying homes valued up to $1 million, with reduced relief between $1 million and $1.5 million. Ontario's program may provide up to $80,000 of relief from the provincial portion, subject to its conditions and effective dates.

These programs generally do not apply to an ordinary resale home. Builder pricing, assignment of rebates, agreement dates, occupancy dates and application procedures can materially affect the result. Buyers of new construction should obtain advice on the agreement and tax treatment before conditions or rescission periods expire.

How much cash should a buyer have ready for closing?

The lawyer's trust requirement is not simply “legal fees plus tax.” It can include:

• the balance of the purchase price after the deposit and mortgage advance;
• land transfer tax, net of any refund claimed on registration;
• legal fees, HST and disbursements;
• title insurance and registration charges;
• statement-of-adjustments amounts; and
• any lender shortfall, holdback or transaction-specific cost.

The mortgage amount approved by the lender may not equal the net funds the lender sends to the lawyer. Interest adjustments, lender fees or holdbacks can reduce the advance. Keep a contingency in the closing budget and ask when the final trust figure will be available.

What can make Ontario home-buying legal costs higher?

Condominium purchases

A status certificate review examines the condominium corporation's governing documents, insurance, budget, reserve-fund information, arrears and disclosed litigation or special assessments. The review and any urgent turnaround may carry an additional charge.

New construction

Builder agreements can contain extensive adjustments, occupancy provisions, development-charge clauses, warranty terms and HST rebate provisions. The total due on final closing can differ significantly from the advertised purchase price.

Private or multiple mortgages

Private lenders and additional mortgages often require separate legal advice, extra documents, lender fees and more coordination. In some cases, the borrower and lender cannot use the same lawyer.

Title or boundary problems

Old registrations, construction liens, encroachments, easements, missing discharges and inconsistent legal descriptions may require negotiation, undertakings, insurance or corrective registrations.

Non-resident and foreign-buyer rules

Ontario's Non-Resident Speculation Tax and Toronto's Municipal Non-Resident Speculation Tax may apply in addition to ordinary land transfer tax. Tax status and exemptions require careful review. Never rely on a standard online LTT estimate where a purchaser may be a foreign national, foreign corporation or taxable trustee.

Can an Ontario home purchase close remotely?

Often, yes. Khan Law can arrange many residential closings using secure electronic communication, permitted virtual identity-verification methods and electronic signatures where appropriate. The exact process depends on the client, lender, documents and legal requirements.

A typical remote workflow may include:

1. secure collection of identification and transaction information;
2. identity verification using a permitted method;
3. a video meeting to review the transaction and documents;
4. electronic signing where accepted; and
5. delivery of closing funds by an approved, traceable method communicated by the firm.

Because real-estate wire fraud is a serious risk, never send funds using instructions taken only from an unexpected email. Confirm trust instructions through a known telephone number or the firm's secure process. Khan Law will advise which payment methods and deadlines apply to the file.

Questions to ask before accepting a legal-fee quote

Use these questions to compare quotes on the same basis:

• Is the quoted amount a legal fee only, or does it include standard disbursements?
• Is mortgage work included?
• Is HST included or added?
• Are title insurance, registration fees, platform charges and searches separate?
• What assumptions make this a “standard” purchase?
• What additional fees apply to a condominium, new build, private lender, bridge loan or urgent closing?
• When will I receive an estimate of funds required to close?
• How will the firm send and verify trust-account instructions?

A transparent quote should make it possible to identify which amounts are firm charges, government charges, insurance premiums, taxes and estimates.

Frequently asked questions

How much are legal fees for buying a house in Ontario?

Khan Law's legal fee and standard legal disbursements for a typical purchase generally range from $1,500 to $1,700 plus HST. Land transfer tax, title insurance, registration charges, searches, adjustments and non-standard work may be additional. Obtain a written quote for the specific transaction.

How much is Ontario land transfer tax on a $600,000 home?

It is $8,475 before rebates for a typical residential purchase. An eligible first-time homebuyer may claim up to $4,000, reducing the net provincial LTT to $4,475. A Toronto property is also subject to Toronto's separate municipal land transfer tax.

Are legal fees included in closing costs?

Yes. Legal fees are one category of closing costs, but closing costs also include taxes, disbursements, insurance, registration fees and adjustments. The cash needed to close also includes the balance of the purchase price not covered by the deposit and net mortgage advance.

Does a first-time buyer pay land transfer tax in Ontario?

Yes, but an eligible first-time buyer may receive a refund of all or part of the Ontario tax, up to $4,000. If the property is in Toronto, a separate municipal rebate of up to $4,475 may also be available.

Is title insurance mandatory in Ontario?

Ontario law does not make title insurance universally mandatory, but a lender may require it and lawyers commonly recommend it in residential transactions. Coverage depends on the policy, and title insurance does not replace legal advice or every type of due diligence.

What closing costs are easy to overlook?

Commonly overlooked items include property-tax and condominium-fee adjustments, lender deductions, title insurance, registration fees, utility or rental-equipment arrangements, moving and insurance costs, and extra legal work caused by the property's title or the financing.

When do I find out the exact amount needed to close?

The final figure is usually confirmed after the lawyer receives the lender's advance details and the seller's statement of adjustments. Ask your lawyer about timing and keep accessible funds available for a late adjustment.

Plan the Closing Before the Closing Date

The safest budget is one that separates the legal quote from taxes, adjustments and property-specific risks. Khan Law explains those categories at the outset and confirms the trust requirement as the file becomes ready to close.

Buying a home in Ontario? Contact Khan Law for a purchase quote based on the property, financing and closing date.

This article provides general information only and is not legal, tax or financial advice. Fees, taxes, rebates, insurance premiums and government charges can change. Eligibility and closing requirements depend on the facts of each transaction.