Closing Costs When Buying a Home in London, Ontario
The down payment gets all the attention, but closing costs are the other number every buyer needs to plan for. In London, Ontario, these typically add up to roughly 1.5% to 4% of the purchase price, depending on the home and whether you're a first-time buyer.
Here's what makes up that figure. This is general information, not legal or financial advice — confirm the specifics with your lawyer and lender.
Ontario Land Transfer Tax
Every home purchase in Ontario is subject to a provincial Land Transfer Tax, calculated on a sliding scale of the purchase price. London has no additional municipal land transfer tax (unlike Toronto), which keeps this cost lower than in the GTA.
First-time buyers qualify for a provincial rebate of up to $4,000, which eliminates the tax on homes up to about $368,000 and reduces it on higher-priced purchases.
Legal fees and disbursements
You'll need a real estate lawyer to close the purchase — handling the title search, registration, and funds transfer. Legal fees plus disbursements (title search, software, registration charges) commonly run in the range of a few hundred to around fifteen hundred dollars, depending on the lawyer and complexity.
Home inspection and title insurance
A home inspection (a few hundred dollars) is money well spent to avoid surprises. Title insurance — a one-time premium usually a few hundred dollars — protects you against title defects, fraud, and survey issues, and is standard on most purchases.
Other costs to plan for
- Mortgage default insurance (CMHC) if your down payment is under 20% — added to the mortgage
- Property tax and utility adjustments (reimbursing the seller for prepaid amounts)
- Home and title insurance
- Moving costs
- An appraisal, if your lender requires one
Frequently asked questions
How much are closing costs in London, Ontario?
Closing costs in London, Ontario typically run about 1.5% to 4% of the purchase price. The largest component is usually the Ontario Land Transfer Tax, followed by legal fees, title insurance, and a home inspection. First-time buyers can offset the land transfer tax with a rebate of up to $4,000.
Do first-time buyers pay land transfer tax in Ontario?
First-time buyers in Ontario receive a Land Transfer Tax rebate of up to $4,000, which fully offsets the tax on homes up to roughly $368,000 and reduces it above that. London has no municipal land transfer tax, so there is no second rebate to claim.
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