Closing costs in Ottawa for first-time buyers: the complete 2026 list

Let me translate.

Closing costs are the bill that arrives after the celebration. You’ve saved the down payment, the offer is firm, and then a list of smaller costs turns up, each reasonable on its own and surprisingly large together. None of them are secret. They’re just rarely explained in one place, in plain English, before you need them.

“What catches my buyers off guard isn’t the down payment. It’s the closing costs. In my experience, it’s roughly 1.5 to 2% of the price, and the one almost nobody sees coming is the sales tax on mortgage insurance. It can’t go on the mortgage. It comes out of your pocket.”

— Gaurav Kapoor, REALTOR®

So here’s the whole list, in the order they tend to show up.

The complete list

1. Ontario land transfer tax (and the first-time buyer refund)

Ontario charges land transfer tax on every purchase, in brackets: 0.5% on the first $55,000, 1% up to $250,000, 1.5% up to $400,000, and 2% up to $2 million. On a $600,000 home, that’s $8,475.

The good news: eligible first-time buyers get up to $4,000 refunded, which brings that $600,000 example down to $4,475. To qualify, you must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and move in within nine months. If your spouse owned a home while you were married, neither of you qualifies. Your lawyer normally claims the refund when the purchase is registered.

And the Ottawa bonus: there’s no municipal land transfer tax here. In Ontario, only Toronto charges one on top of the provincial tax.

2. Provincial sales tax on mortgage insurance

Put less than 20% down and your mortgage needs default insurance. The premium itself (from 0.60% to 4.00% of the loan, depending on your down payment) is usually added to the mortgage. The catch: in Ontario, 8% sales tax applies to that premium, and it can’t be added to the loan. It’s paid in cash at closing.

Choosing a 30-year amortization (available to first-time buyers since December 2024) adds a 0.20% surcharge to the premium, which nudges the PST up a little too.

3. Legal fees and disbursements

Your real estate lawyer handles the title search, the mortgage paperwork, the funds, and the registration. You’ll pay their fee plus disbursements (search, registration and courier costs), plus HST. Ask for an all-in quote in writing before you firm up; quotes that look low sometimes leave the disbursements out.

4. Title insurance

Most lenders require it, and your lawyer will arrange it. It protects against problems with the title, such as fraud, survey issues or unpaid work orders from before your time. It’s a one-time cost, usually included in your lawyer’s statement.

5. Adjustments

If the seller has prepaid property taxes, utilities or (in a condo) common fees beyond your closing date, you reimburse them for the days you’ll own the home. It’s fair, it’s normal, and it can be a few hundred to a few thousand dollars depending on timing. Your lawyer calculates it on the statement of adjustments.

6. Home inspection

In Ontario, inspections typically cost $350 to $600, depending on the home’s size and condition. It’s paid before closing, usually during your condition period. Ontario doesn’t license home inspectors, so ask about experience and insurance, and attend if you can.

7. Home insurance and move-in costs

Your lender will want proof of home insurance before closing. Then there’s the move itself, utility hook-ups, and the things nobody budgets for: window coverings, a lawnmower or snow shovel, and the first trip to the hardware store, which is never the last.

A worked example: a $600,000 home with the minimum down payment

Item	Amount
Purchase price	$600,000
Minimum down payment (5% of the first $500,000 + 10% of the rest)	$35,000
Mortgage before insurance	$565,000
Mortgage insurance premium (4.00%, added to the mortgage)	$22,600
PST on the premium (8%, paid in cash)	$1,808
Ontario land transfer tax	$8,475
First-time buyer refund	−$4,000
Land transfer tax payable	$4,475
Home inspection	$350 to $600
Legal fees, title insurance and adjustments	Ask your lawyer for a written quote

So before legal fees, adjustments and the inspection, this buyer needs about $6,283 in cash on top of the $35,000 down payment. Budget the rest with your lawyer’s quote in hand, and keep a cushion. Closing day is a bad day to discover you’re short.

Your move

• Before you shop: get pre-approved and ask your lender exactly how much cash they need to see for closing.
• Before you offer: get a written, all-in quote from a real estate lawyer.
• Before you firm up: confirm you qualify for the first-time buyer refund, and that your FHSA or Home Buyers’ Plan withdrawals will land in time.

Quick questions

Does Ottawa have a municipal land transfer tax?

No. Ottawa buyers pay Ontario’s land transfer tax only. In Ontario, Toronto is the only city that charges its own on top.

Can I add closing costs to my mortgage?

Generally, plan on paying them yourself. The PST on mortgage insurance specifically can’t be added to the loan, and lenders usually want to see that you can cover closing costs from your own funds.

When do I actually pay these costs?

Your deposit is due shortly after your offer is accepted, and the inspection is paid during your condition period. Almost everything else is paid on closing day, through your lawyer’s trust account.

What if my lawyer doesn’t claim the first-time buyer refund at closing?

You pay the full tax at registration, then apply to Ontario’s Ministry of Finance for the refund within 18 months.