Buying in Rouge Woods and trying to pin down your cash to close? You are not alone. Closing costs in Ontario can feel confusing, especially when you hear different numbers from friends buying in Toronto. In this guide, you will learn what you are likely to pay in Richmond Hill, how Ontario’s land transfer tax works, and a simple way to build a realistic closing budget. Let’s dive in.
What closing costs include in Richmond Hill
Closing costs are the one-time expenses needed to complete your purchase. Some scale with your price and mortgage. Others are fixed fees your lawyer or lender collects to register the deal.
Here is the big picture for Richmond Hill buyers:
- The Ontario Land Transfer Tax is usually the largest single cost.
- You pay the provincial tax in Richmond Hill. You do not pay Toronto’s separate municipal land transfer tax.
- Legal, title, and registration items are standard and should be budgeted for every purchase.
- If you are a first-time buyer, a provincial rebate may reduce your land transfer tax. Your lawyer will confirm eligibility and apply it at closing.
Ontario Land Transfer Tax explained
Who pays and when
The Ontario Land Transfer Tax applies to most property transfers in the province. Your lawyer collects it on closing and pays the government. Make sure the tax is included in your closing funds.
How the provincial bands work
The tax is calculated by applying set rates to portions of the purchase price:
- 0.5% on the portion up to $55,000
- 1.0% on the portion over $55,000 up to $250,000
- 1.5% on the portion over $250,000 up to $400,000
- 2.0% on the portion over $400,000
Illustrative examples:
- Purchase price $600,000: LTT about $8,475
- Purchase price $800,000: LTT about $12,475
- Purchase price $1,200,000: LTT about $20,475
First-time buyer rebate basics
Ontario offers a provincial LTT rebate for eligible first-time buyers. The rebate is applied by your lawyer at closing once your documents are verified. Ask your lawyer early about eligibility and what proof you will need.
Richmond Hill vs Toronto LTT difference
Richmond Hill buyers pay only the provincial LTT. The City of Toronto charges a separate municipal LTT on top of the provincial tax for Toronto addresses. When you compare similar homes, the Toronto property usually carries a higher combined land transfer tax bill. This difference can be meaningful in your final budget.
Typical closing costs and ranges
Every purchase is unique. The ranges below reflect common recent experience in Ontario. Your lawyer will gather most items and present a single amount due on closing day.
Legal, title, and registration
- Legal fees and disbursements: $800 to $1,800. Complex deals can be higher.
- Title insurance: $150 to $500, one-time.
- Land registry and registration fees: a few tens to a few hundreds of dollars, based on documents registered.
Financing and lender-related
- Appraisal fee if required by lender: $300 to $600.
- Mortgage default insurance if down payment is under 20 percent: premium set by the insurer and depends on your loan-to-value. It is often added to the mortgage but confirm with your lender.
Inspections and protection
- Home inspection: $300 to $700. Common for houses, optional for condos.
- First year’s home insurance: your lender may require proof of paid premium before closing. Amount varies by property.
Adjustments and moving
- Adjustments at closing: variable. These are prorated credits or debits for items like property taxes, utilities, and condo common expenses. Plan for them even though they are neutral over time.
- Moving, utility hookups, and immediate maintenance: budget based on distance and scope.
Condo or new-build specifics
- Condo status certificate: typically $100 to $300.
- New-build adjustments: purchases from a builder can include HST on the price and development or closing adjustments. A federal or provincial new housing rebate may apply. Ask a lawyer experienced with new builds to review the builder’s statement.
Taxes for certain buyers
- HST: resale homes are generally exempt from HST on the purchase price. New homes are subject to GST or HST rules, with potential rebates.
- Non-Resident Speculation Tax: a provincial tax applies to certain purchases by non-residents or foreign entities in specified regions. Rules and rates change, so confirm early with your lawyer if this could apply.
Estimate your cash to close
Use this simple framework to build a Richmond Hill closing budget you can trust.
Step A: Gather your numbers
- Purchase price P.
- Down payment D and mortgage amount M = P minus D.
- First-time buyer status and residency status for possible LTT rebate or other taxes.
- Property type: resale house, condo, or new build.
Step B: Calculate provincial LTT
- Apply the band rates to your purchase price.
- If you qualify as a first-time buyer, subtract the provincial rebate amount your lawyer confirms.
Step C: Estimate other line items
- Legal and disbursements: estimate around $1,000, or use quotes.
- Title insurance: estimate around $200, adjust by price.
- Home inspection: estimate around $400 if desired.
- Appraisal: estimate around $400 if your lender requires it.
- Mortgage default insurance: if down payment is under 20 percent, ask your lender for the exact premium and whether it is added to the mortgage.
- Prepaid adjustments and first year’s insurance: set aside $500 to $2,000.
- Condo status certificate: $100 to $300 if applicable.
- Moving and immediate expenses: $500 to $3,000 based on your move.
Step D: Add a buffer
Add a contingency of 1 to 2 percent of the purchase price, or $2,500 to $5,000, to cover surprises and final adjustments.
Sample buyer budgets
These examples are conservative and for illustration only. Your lawyer will provide exact figures for your purchase.
Scenario A: First-time buyer, $600,000 purchase, 5 percent down
- Provincial LTT before rebate: about $8,475. A first-time buyer rebate may reduce this amount significantly if you qualify.
- Legal and disbursements: about $1,200.
- Home inspection: about $400.
- Mortgage default insurance: premium depends on loan-to-value. Many lenders add it to the mortgage. Confirm with your lender.
- Title insurance and registration: about $300.
- Adjustments and first-year insurance: about $1,000.
- Conservative total cash to close, after applying any eligible rebate and assuming the insurance premium is added to the mortgage: roughly $15,000 to $25,000, depending on your exact rebate and deposit already paid.
Scenario B: Move-up buyer, $1,200,000 purchase, 25 percent down
- Provincial LTT: about $20,475.
- Legal and disbursements: $1,200 to $2,000.
- Title insurance: $300 to $600.
- Adjustments, first-year insurance, and move costs: $2,000 to $5,000.
- Conservative total cash to close, not including down payment: roughly $25,000 to $35,000. The LTT is the largest single item.
Key steps before you offer
- Ask a real estate lawyer for a pre-closing estimate tailored to your property and mortgage. They will calculate LTT, apply any rebate, and outline adjustments.
- If you are comparing a Richmond Hill home to one in Toronto, factor in Toronto’s municipal LTT. Richmond Hill avoids that municipal tax.
- If your down payment is under 20 percent, request your exact mortgage default insurance premium and confirm how it is paid.
- For new-builds, have the builder’s closing statement reviewed and confirm HST treatment and any eligible rebates.
- If any buyer is a non-resident or a foreign entity, confirm Non-Resident Speculation Tax applicability as early as possible.
Work with a local team that plans ahead
A clear closing plan protects your budget and your timeline. The Kevin Lin Team pairs neighborhood expertise in Richmond Hill with end-to-end transaction management, so your legal, lender, and closing details stay coordinated. If you want a precise, property-specific closing estimate, reach out and we will connect you with trusted local professionals while we guide your next steps.
Ready to map your closing costs and move with confidence? Contact Kevin Lin Realty for a tailored plan that fits your purchase.
FAQs
What land transfer taxes apply in Rouge Woods, Richmond Hill?
- You pay the Ontario Land Transfer Tax. You do not pay the City of Toronto’s municipal LTT on a Richmond Hill purchase.
How is Ontario’s land transfer tax calculated?
- The tax uses set bands applied to the purchase price: 0.5% to $55,000, 1.0% to $250,000, 1.5% to $400,000, and 2.0% above $400,000.
Do first-time buyers get help with the land transfer tax?
- Ontario offers a provincial LTT rebate for eligible first-time buyers. Your lawyer will confirm eligibility and apply it at closing.
When do I pay the land transfer tax?
- Your lawyer collects the LTT as part of your closing funds and pays the government at registration.
What closing costs are typical besides LTT?
- Plan for legal and disbursements, title insurance, registration fees, possible appraisal and inspection, first-year home insurance, adjustments, and moving costs.
Do resale homes in Richmond Hill have HST on the price?
- Resale homes are generally exempt from HST on the purchase price. New homes are subject to GST or HST rules with potential rebates.
What is the Non-Resident Speculation Tax and could it apply?
- It is a provincial tax that can apply to certain purchases by non-residents or foreign entities in specified regions. Confirm applicability with your lawyer early in the process.
