What closing costs to budget for when you buy a home in Markham

The short answer

Closing costs are the one-time bills an Ontario home buyer pays on top of the down payment. In Markham they follow the same provincial rules as the rest of Ontario with one useful difference from Toronto. The Financial Consumer Agency of Canada describes them as fees you usually pay by the time the sale is completed and says to be prepared to spend between 1.5% and 4% of the home’s purchase price.

On a resale purchase in Markham the list is fairly predictable: Ontario land transfer tax, your lawyer’s fees and disbursements, title insurance, property tax and utility adjustments, sales tax on any mortgage default insurance premium, plus the smaller costs of inspection, appraisal and moving.

Some of these follow a published formula. Others vary by provider and you should get quotes. This guide explains each one and where the figures come from.

Closing costs at a glance

Cost	Who sets it	When you pay	What the source says
Ontario land transfer tax	Province of Ontario	When the transfer is registered	Graduated rates from 0.5% to 2.5% (ontario.ca)
Municipal land transfer tax	City of Toronto, for property in Toronto	Not applicable to a Markham purchase	Ontario’s guide mentions only Toronto’s tax (ontario.ca)
Legal fees and disbursements	Your lawyer	When the sale is completed	Varies, get written quotes
Title insurance	Title insurer	Usually at purchase	One-time premium, not required in Ontario (FSRA)
Sales tax on mortgage default insurance	Province of Ontario	When you get your mortgage	Cannot be added to the loan (CMHC, FCAC)
Property tax and utility adjustments	Set by what the seller prepaid	On closing	Reimburses the seller for amounts already paid (CMHC)
Home inspection	Inspector	Before your offer or during a condition period	Varies, get quotes
Appraisal	Lender or appraiser	During financing	Your lender may require it at your expense (CMHC)
Home insurance	Insurer	Before closing	Must be in place on the day you close (CMHC)
Moving and setup	Movers and utilities	Around closing	Varies

The deposit and the down payment are not closing costs. CMHC notes the deposit can form part of your down payment and is paid when you make the offer.

Ontario land transfer tax

Land transfer tax is often the largest closing cost on a Markham resale. Ontario’s land transfer tax guide sets these rates on the value of the consideration, for agreements entered into after November 14, 2016 and registered on or after January 1, 2017:

Portion of the price	Rate
Up to and including $55,000	0.5%
Over $55,000 up to and including $250,000	1.0%
Over $250,000 up to and including $400,000	1.5%
Over $400,000	2.0%
Over $2,000,000, where the land contains one or two single family residences	2.5%

The province says the tax is payable when the transfer is registered, which your lawyer handles on closing day.

Here is an illustrative example, not a real purchase. On a $900,000 house the tax works out to $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the next $150,000 and $10,000 on the remaining $500,000. That totals $14,475.

First-time buyers may get some of this back. Ontario says the maximum refund is $4,000 for transfers on or after January 1, 2017 and refund requests must be made within 18 months after the date of the transfer. The buyer must be at least 18, must be a Canadian citizen or permanent resident, must occupy the home as their principal residence within nine months and cannot have owned a home anywhere in the world. In the example above, an eligible first-time buyer would net $10,475 after a full refund.

For more detail on rates, refunds and worked examples at different prices, read our guide to land transfer tax in Markham.

Why Markham buyers do not pay a municipal land transfer tax

Ontario’s land transfer tax page says that if you buy property in the City of Toronto, you may also pay the City of Toronto’s own municipal land transfer tax. It does not name any other municipality.

The City of Toronto explains that its tax applies to purchases on all properties in the City of Toronto in addition to the provincial tax. Toronto levies it as a taxation measure granted under the City of Toronto Act, 2006.

Markham is not part of the City of Toronto. A buyer comparing a house in Markham with a similar house on the Toronto side of Steeles Avenue should add Toronto’s municipal tax to the Toronto side of the budget. On the Markham side there is only the provincial tax.

Legal fees, disbursements and title insurance

Legal fees and disbursements

Your lawyer registers the transfer on closing. That registration is when Ontario land transfer tax becomes payable. The Financial Consumer Agency of Canada lists legal fees among the standard closing costs and CMHC notes they are paid when the sale is completed.

There is no fixed fee. Ask two or three real estate lawyers for a written quote that shows their fee, any disbursements (out of pocket costs they pay on your behalf) and the taxes separately so you can compare like with like.

Title insurance

The Financial Services Regulatory Authority of Ontario describes title insurance as a policy that protects owners and their lenders against losses related to the property’s title. FSRA says:

• title insurance is not a requirement in Ontario
• you pay a one-time fee called a premium
• the cost varies based on the value of your property and the insurance company you choose
• residential coverage lasts as long as you own the property

Coverage can include unknown title defects, existing liens such as a previous owner’s unpaid property taxes, encroachment issues and title fraud. FSRA notes you can buy it through your lawyer, a title insurance company or an insurance agent or broker. CMHC notes your lender or lawyer may suggest it.

Mortgage default insurance and the sales tax you pay up front

If your down payment is less than 20% of the price, the Financial Consumer Agency of Canada says you will typically need mortgage loan insurance. Premiums range from 0.6% to 4.5% of the mortgage amount and you can add the premium to your mortgage or pay it up front.

The part that surprises buyers is the tax. CMHC says premiums in Ontario are subject to provincial sales tax and that the tax cannot be added to the loan amount. The FCAC adds that you must pay this tax when you get your mortgage. In practice it comes out of the cash you bring to your lawyer.

As an illustration only, a buyer paying $900,000 with 10% down has a mortgage of $810,000. CMHC’s premium for a loan to value between 85.01% and 90% is 3.10%, which is $25,110. Provincial sales tax applies on top of that premium and has to be paid in cash rather than added to the mortgage. Your lender will state the exact tax amount for your file.

If you are building your down payment from registered savings, our guide to the FHSA and the Home Buyers’ Plan explains how those withdrawals work.

Property tax and utility adjustments

CMHC describes adjustments as charges meant to reimburse the seller for amounts already paid, such as property taxes. The Financial Consumer Agency of Canada lists property tax adjustments among the closing costs to expect. Your lawyer works out these amounts as part of the closing funds you need.

Property tax is the adjustment that matters most in Markham because of how the city bills. The City of Markham issues two bills each year. The interim bill goes out in early January and reflects 50% of the previous year’s taxes. The final bill follows in June. If the seller has already paid property tax for part of the year after you take ownership, expect an adjustment that reimburses them. Ask your lawyer how any unpaid amounts are handled.

CMHC gives filling the oil tank as another example. The same logic applies to any utility the seller has prepaid. Ask your lawyer to explain each line before closing so the final number does not come as a surprise. For how Markham’s bill is built and what drives it, read our explainer on Markham property tax.

Inspection, appraisal, insurance and moving

Home inspection

CMHC describes an inspection as a report on the condition of the home and says you may want to make it a condition of your offer. Fees vary by inspector, so get quotes before you need one.

Appraisal

CMHC says your bank or credit union may require the property to be appraised at your expense. Ask your lender whether an appraisal is needed and who pays for it when you apply.

Home insurance

CMHC notes that property insurance must be in place on the day you close. Your lawyer and lender will ask for proof, so arrange it once your offer is firm.

Moving and setup

CMHC’s list of other costs includes moving expenses, service hook-up fees, window coverings, appliances and repairs. None of these has a standard figure, but they add up quickly in the first month.

If you are buying a condo, the status certificate is a separate item worth understanding. Our guide to the condo status certificate in Markham covers what it tells you.

The same closing costs apply whether you are moving up or downsizing out of a larger, longtime home into something smaller. Our downsizing in Markham guide walks through how to plan that move alongside the sale of your current house.

A note on HST for new builds

Resale buyers generally do not pay sales tax on the home itself. The Canada Revenue Agency says most sales of previously occupied residential housing are exempt from GST/HST, while sales of newly constructed or substantially renovated housing are taxable.

In Ontario the HST is 13%, made up of an 8% provincial portion and a 5% federal portion. New home buyers may recover part of it through federal and Ontario new housing rebates. Ontario’s 2026 Budget also describes temporary enhanced relief for eligible new homes where the agreement with the builder is signed from April 1, 2026 to March 31, 2027, subject to conditions.

New build closings in Markham also bring their own items. The City of Markham says owners of newly constructed homes get a supplementary tax bill based on the assessed value at occupancy. Have your lawyer review the builder’s agreement for adjustments before you sign. Our Markham new construction guide explains how we help with that process.

What to do before you make an offer

1. Calculate Ontario land transfer tax at your target price and check whether you qualify for the first-time buyer refund.
2. Get written quotes from two or three real estate lawyers showing fees, disbursements and taxes.
3. Ask your lender or mortgage professional whether you will need default insurance and what the sales tax will be.
4. Set aside cash for adjustments, since property tax prepaid by the seller can be a meaningful amount mid-year.
5. Price out inspection, insurance and moving before you commit to a closing date.
6. Confirm your own tax and legal position with a lawyer or accountant, because this guide explains the rules but is not personal advice.

Our Markham first time home buyer guide and our buyer page explain how we build these costs into a search from the start. If you want to run the numbers on a specific Markham home, contact us and we will walk through it with you.