Understanding Property Ownership Costs in Ontario

The purchase price is only the beginning. A realistic budget for owning property in Ontario includes costs at closing and costs that continue for as long as you own it.

At closing

• Ontario Land Transfer Tax applies to most purchases. Eligible first-time buyers may qualify for a refund of up to $4,000.
• Properties within the City of Toronto also attract the Municipal Land Transfer Tax, with a separate first-time buyer rebate.
• Foreign nationals, foreign corporations and taxable trustees purchasing residential property anywhere in Ontario pay the Non-Resident Speculation Tax, currently 25%, unless an exemption applies.
• Separately, the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts many purchases by non-Canadians; it has been extended to January 1, 2027.
• Legal fees, title insurance, adjustments and, for new homes, HST considerations.

Ongoing costs

• Property tax, based on the property's MPAC assessment and the municipality's tax rate.
• Insurance appropriate to the use: owner-occupied, rental or vacant.
• Utilities, maintenance and periodic replacement of major systems.
• For condominiums, monthly common expense fees and any special assessments.
• In Toronto, an annual Vacant Home Tax declaration.

Planning well

Tax rates, rebates and thresholds change. Confirm current figures with the relevant government source or your lawyer before relying on any calculation.