Buying Your First Home in Ontario: What to Expect at Closing
Buying your first home is usually the largest purchase you will ever make, and the legal closing is the day it becomes real. For most first-time buyers in Ontario, closing is also the least understood part of the process. You have found the home, your offer is accepted, the financing is arranged, and then the file goes quiet while your lawyer works in the background. Here is what is actually happening, what it costs, and where deals tend to go wrong.
What "closing" actually means
In Ontario, real estate closings are handled by lawyers. Once your offer is firm and the conditions are waived, your lawyer takes over and runs the file to completion. Closing day is when ownership legally transfers from the seller to you, the mortgage is registered against the property, the money changes hands, and you get the keys.
Everything between the accepted offer and that day is preparation. Most of it you never see.
What your lawyer does between the offer and the keys
Your lawyer's job is to confirm that the seller can actually give you clean ownership, to register your purchase and mortgage correctly, and to make sure the right amount of money moves to the right place. In practice that breaks down into a few steps.
The title search. Your lawyer searches the property's title through Ontario's electronic land registration system to confirm who owns it and what is registered against it. The search turns up the ownership history, any mortgages or liens that need to be discharged, easements, and restrictions on the property.
Requisitions. If the search reveals a problem, your lawyer raises it formally with the seller's lawyer by a deadline set in your agreement, called the requisition date. These are demands to clear up title defects before closing, so you are not inheriting someone else's problem.
The mortgage. Your lawyer receives instructions from your lender, reviews the mortgage commitment, prepares the documents for you to sign, and arranges title insurance, which nearly every lender requires.
The statement of adjustments. The seller's lawyer prepares this document. It settles the small accounts between buyer and seller: prepaid property taxes, condo fees, and utilities the seller has already paid past the closing date get credited back to them. Your deposit is credited to you. The result is the final balance you need to bring to closing.
Registration and possession. On closing day the lawyers exchange documents and funds, then register the transfer and your mortgage electronically. Ontario's registration system closes at 5:00 p.m., which is why closings have a same-day deadline. Once registration is confirmed and the seller's lawyer has the funds, the keys are released to you.
The costs that catch first-time buyers off guard
The purchase price is not the whole bill. Plan for roughly three to four percent of the price in additional closing costs on a typical resale home. The two biggest pieces are land transfer tax and your legal costs.
Land transfer tax. Ontario charges land transfer tax on every purchase, calculated on a sliding scale. First-time buyers can claim a refund of up to $4,000, which wipes out the tax entirely on a home priced up to $368,000 and reduces it above that. On a $900,000 home in Brampton, the Ontario land transfer tax works out to about $14,475 before the refund and about $10,475 after it.
If you were buying that same home in the City of Toronto, you would pay a second, municipal land transfer tax on top, which would roughly double the tax. That municipal tax applies only inside Toronto's boundaries. Buyers in Brampton, Mississauga, Caledon, and the rest of Peel pay the provincial tax only.
Title insurance. This is a one-time premium paid at closing, with no renewals. It protects you against title fraud, forged documents, unknown liens left by a previous owner, and survey or zoning problems, and it covers the legal cost of defending your ownership if a claim ever comes up. It is not legally required, but lenders almost always insist on it and it is standard on nearly every purchase in the province.
Legal fees and disbursements. Your lawyer's fee is one line; the disbursements are another. Disbursements are the out-of-pocket costs your lawyer pays on your behalf, such as search fees, registration charges, and software costs, plus HST. Ask for an all-in estimate up front so the final number does not surprise you.
Adjustments and a few smaller items. Beyond the items above, budget for the home inspection and appraisal if you have not already paid them, and for the adjustments on the statement. If your down payment is under 20 percent, your mortgage default insurance premium is added to your loan, but the eight percent provincial sales tax on that premium is payable in cash at closing.
For condos, the status certificate. If you are buying a condominium, your lawyer reviews the status certificate, which reports on the corporation's finances, its reserve fund, any special assessments, and whether the unit is in good standing. The fee is capped at $100 plus tax. This review can save you from buying into a building with a looming repair bill.
Down payment and mortgage rules in 2026
The minimum down payment in Canada is five percent on the first $500,000 of the price, plus ten percent on any portion between $500,000 and $1,499,999. Homes priced at $1.5 million or more require twenty percent down. On a $900,000 home, that means a minimum of $65,000.
Two recent federal changes help first-time buyers. The price ceiling for an insured mortgage rose to $1.5 million, and first-time buyers and buyers of newly built homes can now take a 30-year amortization on an insured mortgage instead of the usual 25.
If you are still saving, two registered accounts are worth knowing. The First Home Savings Account lets you contribute up to $8,000 a year to a lifetime limit of $40,000, with contributions deductible and qualifying withdrawals tax-free. The Home Buyers' Plan lets you withdraw up to $60,000 from an RRSP for a first home, repaid over fifteen years. The two can be combined.
A note on HST
Resale homes are exempt from HST, so there is no sales tax on a typical resale purchase. New builds carry thirteen percent HST, usually built into the builder's price, with rebates that reduce or eliminate it for many buyers. The rebate rules changed in 2026 and the details are still settling, so if you are buying a new build, confirm the current numbers with your lawyer before you rely on them.
Where deals go wrong
A handful of problems come up again and again, and almost all of them are avoidable.
The first is treating the closing date as flexible. Once your conditions are waived, the deal is firm and the date is binding. Backing out or missing closing can cost you your deposit and expose you to a lawsuit.
The second is waiving conditions too early. Your financing, inspection, and condo status certificate conditions exist to protect you. Waive the financing condition before your mortgage is fully approved, or sign off on a condo before your lawyer has read the status certificate, and you have given up your safety net at the moment you most need it.
The third is money arriving late. Your funds have to be in your lawyer's hands before the 5:00 p.m. registration cutoff. If your lender is slow to advance the mortgage, the deal may not register that day. When the delay is short, the parties sometimes agree to close in escrow so you can take possession while registration finishes the next business day, but the seller does not have to agree. If financing falls through altogether, the deal cannot close, and you may owe the seller daily interest and costs.
Common questions
What does a real estate lawyer do when I buy my first home in Ontario?
Your lawyer reviews the purchase agreement, searches title to confirm the seller can give you clear ownership, raises and resolves any title problems, reviews and registers your mortgage, arranges title insurance, calculates the final amount you owe, holds and transfers the money in trust, and registers your ownership electronically. After closing, your lawyer reports to you and your lender.
How much is land transfer tax in Brampton, and is there a break for first-time buyers?
Brampton buyers pay only Ontario's land transfer tax. There is no municipal land transfer tax outside the City of Toronto. First-time buyers can claim a refund of up to $4,000, which eliminates the tax on homes up to $368,000 and reduces it above that. On a $900,000 home the Ontario tax is about $14,475 before the refund and about $10,475 after.
How much should I budget for closing costs?
Plan for roughly three to four percent of the purchase price on a resale home. That covers land transfer tax net of the first-time buyer refund, legal fees and disbursements, title insurance, the home inspection and appraisal, the adjustments for prepaid taxes and utilities, and the provincial sales tax on mortgage insurance if your down payment is under twenty percent.
What is the minimum down payment right now?
Five percent on the first $500,000 of the price, plus ten percent on any portion from $500,000 up to $1,499,999. Homes at $1.5 million or more need twenty percent down. First-time buyers and buyers of new builds can also use a 30-year amortization on an insured mortgage.
Do I pay HST when I buy a home?
Resale homes are exempt, so there is no HST on a typical resale purchase. New builds carry thirteen percent HST, usually in the builder's price, with rebates that lower it for many buyers. The rules changed in 2026, so confirm the current figures with your lawyer if you are buying new.
This article is general information about Ontario law, not legal advice, and it does not create a lawyer-client relationship. Bluestone Law acts for home buyers across Brampton and the wider GTA. Book a consultation and we will walk your purchase through to closing.