Quick answer: Closing costs are the cash you pay on closing day on top of your down payment. In Ottawa the biggest one is Ontario’s land transfer tax: $7,475 on a $550,000 home. First-time buyers get up to $4,000 of it back. Ottawa doesn’t charge a second, municipal land transfer tax the way Toronto does. Add legal fees, title insurance, registration fees, adjustments and, with less than 20% down, Ontario’s 8% sales tax on the mortgage insurance premium. None of it can go on the mortgage.
Most buyers plan carefully for the down payment and guess at the rest. Your lawyer needs the full amount in hand a few days before closing. Knowing the number early means no scramble at the end.
How is land transfer tax calculated in Ottawa?
Ontario charges land transfer tax on the purchase price in marginal brackets, like income tax. For a home with one or two units, the rates are (Ontario Ministry of Finance):
| Portion of the price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Above $2,000,000 | 2.5% |
Here’s what that works out to at a few example prices:
| Purchase price | Land transfer tax | First-time buyer pays |
|---|---|---|
| $450,000 | $5,475 | $1,475 |
| $550,000 | $7,475 | $3,475 |
| $750,000 | $11,475 | $7,475 |
That’s the only land transfer tax an Ottawa buyer pays. Ontario’s guidance names the City of Toronto’s municipal tax as the one buyers there may also owe.
What do first-time buyers get back?
Ontario refunds up to $4,000 of land transfer tax to a first-time buyer, which covers the full tax on a home up to $368,000 (Ontario). To qualify you must:
- be at least 18 and a Canadian citizen or permanent resident;
- move in as your principal residence within nine months;
- never have owned a home, or any interest in one, anywhere in the world;
- not have a spouse who owned a home while you were together.
Your lawyer usually claims it on the land transfer tax affidavit when the transfer is registered, so you never pay that part. If it isn’t claimed then, you pay the tax and have 18 months to apply to the Ministry of Finance.
The “anywhere in the world, ever” test is stricter than the federal FHSA rule, which only looks back four years. You can qualify for the FHSA and still not get the Ontario refund. And if you buy with someone who has owned before, the refund is cut to the share of the home held by the first-time buyer.
What else is in Ottawa closing costs?
| Cost | What it is | Amount |
|---|---|---|
| Sales tax on the mortgage insurance premium | Only with less than 20% down. CMHC premiums are subject to provincial sales tax in Ontario, and it can’t be added to the mortgage | 8% of the premium, in cash (CMHC; Ontario) |
| Legal fees | Your lawyer searches title, registers the transfer and mortgage, and moves the money | Get a written quote |
| Registration fees | Ontario’s fee to register each document electronically, usually the transfer and the mortgage | $86.42 each from November 2, 2026 (Ontario) |
| Title insurance | Covers title defects and some fraud; lenders want it or a lawyer’s opinion on title | Part of your lawyer’s quote |
| Adjustments | Your share of property tax, condo fees or utilities the seller has prepaid | On the statement of adjustments |
| Condo status certificate | The condo corporation’s statement on the unit, the fees and the reserve fund | Up to $100, tax in (O. Reg. 48/01) |
| Home inspection | Optional, but skipping it is a risk | Get a quote |
The mortgage insurance premium itself can be added to the mortgage. The 8% tax on it can’t, so it comes out of your cash. On property tax adjustments, see how Ottawa property taxes work. A brand-new home also carries HST, which a resale home doesn’t (Ontario); see the HST rebate on Ottawa new builds.
Two Ottawa closings, worked through
These are example prices to show the arithmetic, not market averages. The first is a first-time buyer with 5% down on a condo, using CMHC’s 4.00% premium for a mortgage above 90% of the price over 25 years. The second is a repeat buyer with 20% down, so there’s no insurance and no refund.
| $450,000 condo, first-time buyer, 5% down | $750,000 house, repeat buyer, 20% down | |
|---|---|---|
| Down payment | $22,500 | $150,000 |
| Land transfer tax | $5,475 | $11,475 |
| First-time buyer refund | −$4,000 | $0 |
| Mortgage insurance premium (added to the mortgage) | $17,100 | none |
| 8% sales tax on the premium (cash) | $1,368 | $0 |
| Registration, two documents | $172.84 | $172.84 |
| Status certificate (up to) | $100 | none |
| Cash before legal fees, title insurance and adjustments | $3,115.84 | $11,647.84 |
On the condo, the cash cost is mostly the land transfer tax left after the refund, plus the sales tax on the premium. On the house, it’s almost all land transfer tax. Your lawyer’s fees, title insurance and the adjustments come on top of both.
When doesn’t this apply?
If you’ve owned a home anywhere before, even years ago in another country, you don’t get the refund. If you put 20% or more down, there’s no mortgage insurance and no sales tax on it. A new build adds HST and often builder adjustments that your lawyer needs to review before you sign. And the 2.5% rate above $2,000,000 applies only to a home with one or two units, so a larger property is calculated differently. Check it with your lawyer.
Common questions about Ottawa closing costs
How much are closing costs in Ottawa?
The largest is Ontario’s land transfer tax, which is $7,475 on a $550,000 home. Then add legal fees, title insurance, registration fees, adjustments and, with less than 20% down, 8% sales tax on the mortgage insurance premium.
Does Ottawa have a municipal land transfer tax?
No. Ottawa buyers pay only Ontario’s land transfer tax. The second, municipal land transfer tax applies to homes in the City of Toronto.
How much land transfer tax do first-time buyers save in Ottawa?
Up to $4,000. That covers the full tax on a home up to $368,000. You must never have owned a home anywhere in the world, and your spouse can’t have owned one while you were together.
Can closing costs be added to the mortgage?
No. Land transfer tax, legal fees and the sales tax on a mortgage insurance premium are paid in cash on closing. Only the mortgage insurance premium itself can be added to the loan.
How much does a condo status certificate cost in Ontario?
No more than $100, including tax. That cap is set by Ontario regulation.
What should you do next?
Before you start viewing homes, work out your closing cash along with your down payment, so your pre-approval reflects what you’ll actually need on the day. Send me the price range you’re looking at and whether you’re a first-time buyer, and I’ll lay out both numbers for you. Book a 20-minute call with Joshua Tagg.
This is commentary, not legal, tax or financial advice. Figures as of October 20, 2026, as published by the Ontario Ministry of Finance, CMHC and Ontario’s land registration office. Confirm your own costs with your real estate lawyer. All mortgages are subject to lender and insurer approval. Joshua Tagg, Indi Mortgage.
