Closing Costs When Buying in Mississauga

Written by Firas Swaida, RE/MAX Realty Services Inc., Brokerage. Updated July 2026.

Buying a home in Mississauga costs more than the purchase price and your down payment. Closing costs are the extra amounts you pay to finish the deal, and most of them come due on or right before your closing date. For a resale home in Mississauga, a sensible planning range is roughly 1.5% to 4% of the purchase price. Where you land inside that range depends on your price point, the size of your down payment, and whether you qualify as a first-time buyer. On an $800,000 home, that can mean anywhere from about $12,000 to $32,000 in total, and the single largest item is almost always the provincial Land Transfer Tax.

The biggest closing cost for most Mississauga buyers is the Ontario Land Transfer Tax. Mississauga sits in the Region of Peel, not the City of Toronto, so you pay only the provincial tax. There is no municipal land transfer tax in Mississauga. Toronto is the only municipality in Ontario that layers a second, city-level land transfer tax on top of the provincial one, and Mississauga is not part of Toronto. That single fact saves Mississauga buyers thousands of dollars compared with an identical purchase inside Toronto’s boundaries.

After the tax, the usual costs are legal fees and disbursements, title insurance, a home inspection, an appraisal, mortgage-related charges (including default insurance if your down payment is under 20%), possible HST on a brand-new build, and closing adjustments such as prepaid property tax. This guide breaks down each one, shows how the tax brackets actually work, and points out where a first-time buyer can claim money back. Figures change over time, so treat the numbers as a planning guide and get an exact, written estimate from your lawyer and your agent before you firm up an offer.

Ontario Land Transfer Tax: the biggest single closing cost

Every buyer of land in Ontario pays Land Transfer Tax (LTT) when the deal registers. It is a one-time provincial tax based on the purchase price, and it is due in full on closing. There is no way to spread it out or add it to your mortgage. Your lawyer collects it as part of the funds needed to close and remits it through Ontario’s electronic land registration system.

The tax is calculated on what the province calls the “value of the consideration,” which for a normal home purchase is your purchase price. It is worth understanding the mechanics, because the amount is large and the way it is calculated is often misread.

How the Ontario brackets work

Ontario uses a set of marginal brackets, similar to income tax. You do not pay one flat rate on the whole price. Each slice of the price is taxed at its own rate, and the slices are added together. According to the Ontario Ministry of Finance, for an agreement of purchase and sale entered into after 14 November 2016, with registration on or after 1 January 2017, the rates are:

0.5% on the portion of the price up to and including $55,000
1.0% on the portion above $55,000 and up to $250,000
1.5% on the portion above $250,000 and up to $400,000
2.0% on the portion above $400,000
2.5% on the portion above $2,000,000, where the land contains one or two single-family residences

Because the rates are marginal, a common mistake is to multiply the whole price by the top rate. That overstates the tax. Only the amount inside each bracket is charged at that bracket’s rate. These are the rates published by Ontario at the time of writing, and the province can change them, so confirm the current figures on ontario.ca or with your lawyer before you rely on a specific number.

Worked examples at Mississauga price points

Ontario publishes a worked example: on a $400,000 purchase, the tax is $275 (on the first $55,000) plus $1,950 (on the next $195,000) plus $2,250 (on the next $150,000), for a total of $4,475. Using the same bracket method, here is roughly what the provincial Land Transfer Tax works out to at prices common in Mississauga. Treat these as illustrations, not quotes:

$500,000 purchase: about $6,475
$700,000 purchase: about $10,475
$800,000 purchase: about $12,475
$900,000 purchase: about $14,475
$1,000,000 purchase: about $16,475
$1,200,000 purchase: about $20,475

You can see how quickly this climbs. On a typical Mississauga family home between $800,000 and $1,000,000, the tax alone is often $12,000 to $16,000, which is why it sits at the top of any closing-cost budget and why first-time buyers should read the refund section below.

When and how you pay it

You do not send Land Transfer Tax to the government yourself. Your lawyer includes it in the funds you bring in before closing, usually by bank draft or certified funds, and pays it when the transfer registers. If you are a qualifying first-time buyer, your lawyer can claim the refund at registration so the tax is reduced right away, which means you may not have to front the full amount and wait.

A note on HST and the tax

One technical point helps on a new build: Ontario does not charge Land Transfer Tax on the HST portion of a new home’s price. The province confirms that HST paid on the purchase price is excluded from the value of the consideration. It is a small mercy on an already large bill, and your lawyer handles the math.

Mississauga has no municipal land transfer tax (unlike Toronto)

This is the point that trips up buyers who have been reading about Toronto. In 2008, the City of Toronto introduced its own Municipal Land Transfer Tax, charged on top of the provincial one for properties inside Toronto’s city limits. It roughly doubles the land transfer tax bill on a Toronto purchase. Toronto remains the only municipality in Ontario with this power.

Mississauga does not have a municipal land transfer tax. A buyer in Mississauga pays the Ontario provincial Land Transfer Tax and nothing more at the municipal level. The same is true of Brampton, Oakville, Milton, Vaughan, Markham, and the rest of the Greater Toronto Area outside Toronto proper. Only Toronto adds the second tax.

The savings are real and easy to quantify. On a $750,000 home, the provincial Land Transfer Tax in Mississauga is roughly $11,475. On the same price inside Toronto, the buyer also pays a municipal tax of a similar size, pushing the combined bill to around $22,950. On a $1,000,000 purchase, the Toronto municipal tax adds roughly $16,000 that a Mississauga buyer does not pay. For buyers weighing a Toronto neighbourhood against a comparable Mississauga one, that difference can cover a large chunk of the other closing costs. If an online calculator asks you to add a “municipal” or “Toronto” land transfer tax for a Mississauga address, ignore that field.

The first-time home buyer land transfer tax refund

Ontario offers a refund of Land Transfer Tax to qualifying first-time home buyers, and it applies to purchases in Mississauga just as it does everywhere else in the province. This is one of the most valuable breaks available to a new buyer, so it is worth understanding.

How much the refund is worth

For purchases that close on or after 1 January 2017, the maximum refund is $4,000. The province says no Land Transfer Tax is payable by a qualifying first-time buyer on the first $368,000 of the home’s value. If your home costs $368,000 or less, the refund can wipe out the provincial tax entirely. Above that, it reduces your bill by the full $4,000 and you pay the rest. On a $700,000 Mississauga home, a first-time buyer’s roughly $10,475 tax drops to about $6,475. These figures reflect the current rules on ontario.ca, and because the province can adjust them, confirm the current maximum before you count on it.

Who qualifies

Ontario sets specific conditions. Based on the Ministry of Finance rules, to claim the refund you generally must meet all of the following:

Be at least 18 years old.
Be a Canadian citizen or a permanent resident of Canada (this requirement has applied since 1 January 2017).
Occupy the home as your principal residence within nine months of the transfer.
Never have owned an eligible home, or an interest in one, anywhere in the world, at any time.
Have a spouse who has also never owned an eligible home anywhere in the world while being your spouse. If your spouse owned a home during your relationship, neither of you can claim the refund.

The refund covers both resale and newly built homes. If one buyer qualifies and another (say a parent added to title) does not, the refund is prorated to the qualifying buyer’s share. You cannot re-qualify as a first-time buyer later, so this is a one-time benefit. Note that Ontario’s definition here is stricter than some federal programs, so being a first-time buyer for one program does not automatically make you one for this refund.

How you claim it

In most cases your lawyer claims the refund electronically at registration, which offsets the tax so you never pay it out of pocket. If it is not claimed at closing, you pay the tax and then apply to the Ontario Ministry of Finance afterward, through their online services portal or a paper affidavit. You have 18 months from the date of registration to apply, so do not let the deadline slip. Your lawyer normally handles this as part of the closing.

Legal fees and disbursements

You need a real estate lawyer to close a home purchase in Ontario. The lawyer reviews the agreement of purchase and sale, searches title, deals with the lender’s requirements, arranges title insurance, calculates the adjustments, registers the transfer, and makes sure the money moves correctly. This is not optional, and it is money well spent.

What the lawyer charges

Legal costs come in two parts: the lawyer’s professional fee and the disbursements (the out-of-pocket costs the lawyer pays on your behalf). For a straightforward residential purchase in Ontario, the professional fee commonly runs from about $1,000 to $2,500 plus HST, depending on the firm and the complexity of the deal. These are typical market ranges, not fixed prices, so ask for a written quote up front.

Common disbursements

Disbursements are the smaller charges that add up. On a typical purchase they often total a few hundred to around a thousand dollars on top of the fee, and they can include:

Title search fees to check the property’s ownership history and confirm clear title.
Registration fees paid through Ontario’s electronic land registration system to register the transfer and your mortgage.
The title insurance premium (covered in its own section below).
Software and transaction charges the firm uses to complete the electronic closing.
Courier, photocopying, and file administration costs.
If you are buying a condominium, the cost of the status certificate, which in Ontario is capped by the Condominium Act at $100 including HST for the standard package.

Adding the professional fee, disbursements, title insurance, and HST together, many Mississauga buyers see a total legal bill of about $1,800 to $3,000 for a standard purchase. A more complex deal (a new build, a private mortgage, or a property with title issues) can cost more. Ask for an all-in estimate that includes disbursements and tax, not just the headline fee.

Title insurance

Almost every lender in Ontario requires title insurance, and most lawyers recommend it even for cash buyers. It is a one-time premium, paid once at closing, that covers you for as long as you own the home. Unlike home insurance, you do not renew it or pay it annually.

Title insurance protects against problems with the property’s legal ownership and against certain risks that a normal title search might not catch. Examples include:

Title fraud, where someone fraudulently deals with your property.
Survey or boundary issues, and structures built without the right permits by a previous owner.
Unknown liens or encumbrances registered against the title.
Errors in public records or in prior registrations.

For a typical residential purchase, the premium is usually a few hundred dollars, often about $250 to $500 for a standard home, with the exact price depending on the property’s value and the insurer. Your lawyer arranges the policy and includes the premium in your closing statement, so you do not shop for it separately. It is one of the more affordable protections you will buy in the transaction.

Home inspection and appraisal

These two costs are easy to confuse because both involve someone looking at the property, but they serve very different purposes and are paid to different people.

Home inspection

A home inspection is for you, the buyer. A qualified inspector examines the home’s major systems (roof, foundation, electrical, plumbing, heating and cooling, windows, and more) and gives you a written report on their condition. It helps you understand what you are buying and can flag expensive problems before you commit. In a competitive market, some buyers inspect before offering, or use a pre-listing inspection provided by the seller.

In Ontario, a standard home inspection commonly costs about $400 to $600, and larger, older, or rural properties (for example, homes with a septic system or a private well) can run higher. An inspection is not legally required in Ontario, but for most resale purchases it is money well spent. You pay the inspector directly, usually around the time of the inspection, not on the closing date.

Appraisal

An appraisal is usually for your lender. It is an independent estimate of the property’s market value, and the lender uses it to confirm the home is worth what they are lending against. Appraisals are most common on conventional mortgages (20% or more down), when the lender wants to verify value, or on unique properties. If your mortgage is insured because your down payment is under 20%, the insurer often handles valuation and a separate appraisal may not be needed.

When an appraisal is required, the fee typically falls in the range of about $300 to $600 for a standard residential property, with complex or high-value homes costing more. Sometimes the lender covers this cost as part of a mortgage promotion, so ask your mortgage professional whether you will be charged. As with the inspection, these are market estimates that vary by provider and property.

Mortgage-related costs and default insurance

If you are financing your purchase, a few costs are tied directly to the mortgage. Some are small, and one can be significant if your down payment is under 20%.

Mortgage default insurance

In Canada, if your down payment is less than 20% of the purchase price, your mortgage must carry default insurance, provided by CMHC, Sagen, or Canada Guaranty. This insurance protects the lender, not you, but you pay for it. The premium is a percentage of the mortgage amount, and it rises as your down payment shrinks. The widely used tiers are approximately:

5% to 9.99% down payment: about 4.00% of the mortgage
10% to 14.99% down payment: about 3.10% of the mortgage
15% to 19.99% down payment: about 2.80% of the mortgage
20% or more down payment: no default insurance required

The premium itself is normally added to your mortgage and paid off over time, so it is not usually an out-of-pocket closing cost. Here is the catch that matters for your budget: Ontario charges 8% provincial sales tax on the insurance premium, and that tax must be paid at closing. It cannot be added to the mortgage. On a large mortgage, that 8% can amount to hundreds or even a few thousand dollars due on closing day, so if you are putting down less than 20%, ask your lawyer and lender for the exact PST figure and set it aside.

Minimum down payment rules to keep in mind

The minimum down payment in Canada is 5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1,500,000. Homes priced at $1,500,000 or more are not eligible for default insurance, so they generally require at least 20% down. These thresholds decide whether default insurance, and its PST, enters your closing budget at all.

Other mortgage and setup costs

A handful of other charges can appear, depending on your lender and situation:

Appraisal fee, if the lender requires one and does not cover it.
Home fire insurance binder. Lenders require proof of property insurance before they release funds, so you need a policy in place for the closing date. Budget for the first payment.
Mortgage broker fee. For standard prime mortgages, brokers are usually paid by the lender, so most buyers pay nothing. Fees can apply for private or non-prime lending, and a good broker discloses this in advance.
Interest adjustment. If your first mortgage payment date does not line up with closing, the lender may charge a few days of interest.

None of these is huge on its own, but together they belong in your plan. Your mortgage professional can give you a precise list for your approval.

HST on new builds versus resale homes

This is one of the most misunderstood parts of a home purchase, and the answer depends entirely on the kind of home you are buying: a resale property, or a brand-new one from a builder.

Resale homes are generally exempt

If you buy a resale home in Mississauga (a property that someone has already lived in, sold to you by its owner), you generally do not pay HST on the purchase price. Most homes in Mississauga trade this way, so most buyers here never face HST on the home itself. You still pay HST on the services around the deal, such as legal fees, the home inspection, the appraisal, and moving, but not on the price of the house.

New builds from a builder generally include HST

A newly built home purchased from a builder is different. HST applies to new construction, whether that is a pre-construction condominium, a new freehold home in a subdivision, or a substantially renovated property sold by a builder. In Ontario, HST is 13%, made up of a 5% federal portion and an 8% provincial portion. On a new home that is a large number, which is why the rebate rules below matter so much.

The rebates that reduce it

Federal and provincial new housing rebates exist to soften the HST on new homes bought as a principal residence. Ontario’s existing New Housing Rebate returns part of the 8% provincial portion, historically up to $24,000, and there is also a federal portion rebate. For buyers who will live in the home, builders very often build these standard rebates into the advertised price, so the sticker price is quoted net of the rebate and the builder claims it for you. Confirm in the agreement of purchase and sale whether the price already includes the rebate.

Be careful in two situations. If you buy a new home as a rental or investment rather than to live in, the builder may not credit the rebate, so you could pay the full HST on closing and claim a rebate (the New Residential Rental Property Rebate) yourself afterward, which can be a large sum due on closing day. Assignment purchases also have their own rules. In either case, have your lawyer confirm the exact HST and rebate treatment before you close.

New relief for first-time buyers of new homes

The rules here are changing. The federal government introduced a First-Time Home Buyers’ GST Rebate that can remove the 5% federal GST on an eligible new home valued up to $1 million for qualifying first-time buyers, phasing out between $1 million and $1.5 million and worth up to $50,000. Ontario’s 2026 Budget also proposed enhanced provincial rebates on new homes, raising the maximum well above the old $24,000 figure and adding first-time buyer relief on the provincial portion. These programs carry specific eligibility conditions and date windows, and some are still being implemented through legislation and regulation. If you are buying new, do not assume a rebate amount. Ask your lawyer and the builder which programs apply, how much they are worth, and who claims them. For resale buyers, none of this applies, because there is no HST on the price.

Closing adjustments: prepaid property tax, utilities, and more

On closing day, your lawyer prepares a statement of adjustments. This document settles any amounts the seller prepaid that carry past the closing date, or any amounts owing that they had not yet paid. The idea is fairness: the seller should not pay for days after they no longer own the home, and you should not pay for days before you do. These adjustments can add to (or occasionally reduce) the cash you bring to closing.

Property tax adjustment

Property tax is the most common adjustment. Mississauga bills property taxes on behalf of the City, the Region of Peel, and the school boards. If the seller prepaid the tax for the full year, you reimburse them for the portion after your closing date. If the seller is behind, the adjustment runs the other way and reduces what you owe. Either way, expect a property tax line on your statement of adjustments, sized by the annual bill and the closing date.

Utilities and other prepaid items

Other adjustments can include:

Utilities such as water, hydro, and gas, prorated to the closing date so each party pays for their own usage.
Condominium fees, if you are buying a condo. Monthly common expenses are usually adjusted so the seller pays up to closing and you pay from closing forward.
Fuel oil or propane, if the home uses a tank. You may reimburse the seller for fuel left in the tank at closing.
Rent and deposits, if you are buying a property with a tenant, where prepaid rent and the last-month deposit transfer to you.

Individually these are small, but they can add several hundred to a couple of thousand dollars to your closing figure, so leave room for them. Your lawyer gives you the final, exact number in your closing statement a few days before you close.

Moving and setting up your new home

These costs are not paid to lawyers or governments, but they are still real money that lands around your move, so a complete budget should include them.

Movers. A local move within the Greater Toronto Area can range from a few hundred dollars for a small condo to a couple of thousand dollars or more for a larger home, depending on distance, volume, and time of year.
Utility hookups and transfers. Setting up or transferring hydro, gas, water, internet, and phone can involve small connection or account fees.
Immediate repairs and essentials, such as paint, cleaning, and window coverings, tend to cluster in the first weeks.
Re-keying the locks, a sensible security step for any new home, and inexpensive.
Appliances and furniture, if the home does not come with them or you are upsizing.

You need not spend all of this on day one, but planning for it keeps the move from straining your budget right after the larger closing costs.

Frequently asked questions

How much should I budget for closing costs in Mississauga?

A practical planning range is about 1.5% to 4% of the purchase price, separate from your down payment. The provincial Land Transfer Tax is the largest piece, so higher-priced homes sit toward the upper end. A first-time buyer buying resale with 20% or more down usually lands lower, while under 20% down or a new build with HST lands higher. Ask your lawyer and agent for a figure based on your actual purchase.

Does Mississauga have a municipal land transfer tax like Toronto?

No. Mississauga has no municipal land transfer tax. Toronto is the only municipality in Ontario that charges a city-level land transfer tax on top of the provincial one, and Mississauga is not part of Toronto. In Mississauga you pay only the Ontario provincial Land Transfer Tax, which saves you thousands compared with an identical purchase inside Toronto.

How much is land transfer tax on a home in Mississauga?

It depends on the price, because Ontario uses marginal brackets. As a guide, the provincial tax is roughly $6,475 on a $500,000 home, about $10,475 on $700,000, about $12,475 on $800,000, and about $16,475 on $1,000,000. First-time buyers can reduce this by up to $4,000. Confirm the current bracket rates on ontario.ca, since the province can change them, and have your lawyer calculate the exact amount.

Who counts as a first-time home buyer for the Ontario refund?

In general you must be at least 18, a Canadian citizen or permanent resident, planning to live in the home as your principal residence within nine months, and you must never have owned a home anywhere in the world. If you have a spouse, they cannot have owned a home while being your spouse. The maximum refund is currently $4,000. The full rules are on ontario.ca, and your lawyer can confirm whether you qualify.

Do I pay HST when I buy a resale home in Mississauga?

Generally no. A resale home, meaning one that has been lived in and is sold by its owner, does not attract HST on the purchase price. You will still pay HST on services such as legal fees, the home inspection, and moving, but not on the price of the house itself. HST usually applies only to brand-new homes bought from a builder.

Do I really need a lawyer, and what will it cost?

Yes, a real estate lawyer is required to close a purchase in Ontario. The professional fee commonly runs about $1,000 to $2,500 plus HST, and with disbursements, title insurance, and tax, the all-in total is often roughly $1,800 to $3,000. Ask for a written, all-in quote so disbursements do not surprise you on closing day.

Is a home inspection required in Ontario?

No, a home inspection is not legally required, but it is strongly recommended for most resale purchases. It typically costs about $400 to $600 for a standard home, more for larger, older, or rural properties. The report helps you understand the condition of what you are buying and can save you from expensive surprises later.

What is mortgage default insurance, and do I pay it at closing?

If your down payment is under 20%, you must carry mortgage default insurance, and the premium is a percentage of your mortgage that rises as your down payment falls. The premium itself is usually added to the mortgage. In Ontario, though, there is 8% provincial sales tax on that premium, and the PST must be paid at closing and cannot be financed. If you are putting down less than 20%, ask for the exact PST amount so you can set it aside.

Are closing costs different for a condo?

The main costs are the same, with a couple of condo-specific items. Your lawyer reviews the condominium’s status certificate, which in Ontario is capped at $100 including HST for the standard package. Monthly common expense fees are also adjusted on closing so you pay from your closing date forward. Otherwise, Land Transfer Tax, legal fees, title insurance, and the rest apply to condos as they do to freehold homes.

Can I add closing costs to my mortgage?

Mostly no. Land Transfer Tax, legal fees, and the PST on default insurance are due in cash at or before closing and generally cannot be rolled into the mortgage. The default insurance premium itself is the exception, since it is normally added to the loan. Plan for closing costs alongside your down payment rather than assuming the mortgage covers them.

What is the Non-Resident Speculation Tax, and does it affect me?

The Non-Resident Speculation Tax is a separate Ontario tax of 25% that applies to purchases of residential property by foreign nationals, foreign corporations, and certain trustees. It does not apply to Canadian citizens or permanent residents. If your residency status is at all in question, raise it with your lawyer early, because this tax is large and it is far better to plan for it (or confirm you are exempt) before you make an offer.

Get an exact estimate for your Mississauga purchase

Closing costs are predictable once you know your price, your down payment, and whether you qualify for the first-time buyer refund. The numbers in this guide are current at the time of writing and drawn from Ontario government sources, but rates and rebate programs do change, so the smart move is to get real figures for your own purchase. Your real estate lawyer will give you the exact Land Transfer Tax, adjustments, and legal costs in writing before you close, and a knowledgeable agent will help you plan the whole budget from the first showing.

If you are thinking about buying in Mississauga or anywhere across the GTA, Firas Swaida of RE/MAX Realty Services Inc., Brokerage can walk you through a realistic closing-cost estimate for the exact homes you are considering, point you to trusted lawyers and mortgage professionals, and make sure you claim every credit you are entitled to. Firas serves clients in English and Arabic and knows the Mississauga market in detail. Call or text Firas at (647) 402-4727 to talk through your plans and get a clear picture of what you will need at closing.