Short answer
Ontario new-build cash to close is usually down payment still owing plus land transfer taxes, insured-mortgage PST, legal/title costs, warranty or Tarion allowances, builder adjustments, development charges, and rebate timing. The exact number depends heavily on the agreement and statement of adjustments.
Closing ledger
Costs to separate before closing
This is the practical map of what feeds the cash-to-close number.
What this page helps you decide
Buyer wants a practical Ontario new-build closing-cost checklist and a way to turn those costs into one cash-to-close number.
- Early estimates should separate predictable taxes from document-specific builder charges.
- Toronto purchases need both Ontario LTT and Toronto MLTT in the same closing ledger.
- Rebate timing can lower or raise cash needed even when the rebate estimate is unchanged.
Documents to check
Where to find the answer
The goal is to replace rough assumptions with document-backed numbers before closing.
Agreement of purchase and sale
Confirms price basis, municipality, rebate assignment wording, development charge caps, and adjustment language.
Deposit schedule
Shows what has already been paid so the calculator can subtract deposits from future cash needed.
Mortgage approval
Confirms down payment, amortization, insured-mortgage treatment, and whether CMHC insurance applies.
Statement of adjustments
The practical closing worksheet for final builder charges, credits, levies, utility charges, and other adjustments.
Tarion/HCRA addendum
Useful for construction timing, occupancy context, warranty details, and new-build document review.
Why closing costs are not one percentage
A percentage estimate hides the difference between formula-driven costs and document-driven costs. Land transfer tax and CMHC premium tiers can be estimated from inputs, while development charges and builder adjustments often require agreement and closing documents.
Why Toronto needs its own line
Toronto purchases can add municipal land transfer tax on top of Ontario land transfer tax. First-time buyer relief can reduce each tax separately, so the calculator keeps provincial and municipal lines apart.
Why CMHC PST surprises buyers
For insured mortgages, the insurance premium may affect the mortgage balance, but Ontario PST on the premium is modelled as cash due at closing. That is why it belongs in cash-to-close, not only in a payment calculator.
Why builder paperwork changes the estimate
The statement of adjustments is where many project-specific amounts become real: development charges, utility adjustments, reserve or common-element contributions, occupancy charges, credits, and other builder lines.
Common mistakes
What buyers often miss
Using resale closing-cost rules for a new build
New-build buyers can face builder adjustments, Tarion or warranty charges, occupancy charges, and development-charge exposure that resale buyers may not see in the same way.
Ignoring Toronto municipal tax
A Toronto purchase can materially change the cash requirement because municipal land transfer tax stacks with Ontario land transfer tax.
Entering zero for unknown project charges
Zero is a valid number only when documents support it. Otherwise, unknown development charges or adjustments should stay visible as review items.
Example new-build closing ledger
| Down payment still needed | $45,000 |
|---|---|
| Ontario and Toronto land transfer tax | $22,475 |
| CMHC PST | $2,120 |
| Legal, builder, Tarion, and adjustments | $8,840 |
| Estimated cash to close | $78,435 Before professional review |
Source-linked claims
What this page relies on
Ontario land transfer tax and Toronto municipal land transfer tax are separate closing tax calculations, and Toronto purchases can require both.
CMHC publishes mortgage loan insurance premium tiers, and the calculator models Ontario PST on the premium as a separate closing-cash item.
Ontario guidance for new-home value of consideration points to agreement and statement-of-adjustments review, which is why builder documents are central to final cash-to-close planning.
Frequently asked
How much are closing costs on an Ontario new build?
There is no reliable universal percentage. A useful estimate separates taxes, insured-mortgage PST, legal/title costs, deposits, builder adjustments, development charges, and rebate timing.
Which document usually makes the estimate real?
The statement of adjustments is usually where the final builder charges, credits, and project-specific adjustments become visible before closing.