The short answer: First-time buyer closing costs in Durham are mainly Ontario land transfer tax (with a refund of up to $4,000), 8% PST on any CMHC mortgage insurance premium, legal fees, title insurance and adjustments. Durham has no municipal land transfer tax.
Most first-time buyers we meet in Pickering, Ajax, Whitby, Oshawa and Clarington have budgeted the down payment. Closing costs are what catch people off guard.
What closing costs do first-time buyers pay in Durham?
| Cost | What to expect |
|---|---|
| Ontario land transfer tax | Set by the province; first-time buyers may get up to $4,000 back |
| Municipal land transfer tax | None in Durham (Toronto only) |
| PST on mortgage insurance | 8% of the premium, paid at closing (under 20% down) |
| Legal fees and disbursements | Varies by lawyer; get a written quote |
| Title insurance | One-time premium, usually arranged by your lawyer |
| Adjustments | Your share of prepaid property tax or utilities |
| Home inspection, insurance, moving | Varies; home insurance is usually required by the lender |
How much is land transfer tax for a first-time buyer in Ontario?
Ontario charges 0.5% on the first $55,000, 1.0% to $250,000, 1.5% to $400,000 and 2.0% above $400,000 (2.5% above $2,000,000 for one or two single-family homes). Eligible first-time buyers get a refund of up to $4,000, so homes up to about $368,000 pay no provincial tax.
To qualify, you must be 18 or older, a Canadian citizen or permanent resident, never have owned a home anywhere, and move in within nine months. Your lawyer usually claims the refund at registration.
Is there a municipal land transfer tax in Durham Region?
No. Ontario’s Ministry of Finance notes that buyers in the City of Toronto may also pay Toronto’s own municipal land transfer tax, which the city charges under the City of Toronto Act, 2006. Pickering, Ajax, Whitby, Oshawa and Clarington don’t charge one, so Durham buyers pay only the provincial tax. Toronto’s first-time buyer rebate is up to $4,475.
Do I pay tax on CMHC mortgage insurance?
With less than 20% down, your mortgage needs default insurance. CMHC’s premium is a percentage of the loan (for example 3.10% at 85.01% to 90% loan-to-value) and can be added to the mortgage. Ontario’s 8% retail sales tax on the premium can’t be added to the loan, so you pay it at closing. CMHC adds a 0.20% surcharge for amortizations over 25 years (available to first-time buyers and buyers of new builds). Insured mortgages need a price under $1.5 million.
What would closing costs look like on an $800,000 Durham home?
Illustration only, not a quote: An eligible first-time buyer pays $800,000 for a Whitby townhouse with 10% down ($80,000). Ontario land transfer tax is $12,475, less the $4,000 refund: $8,475. The CMHC premium on the $720,000 loan at 3.10% is $22,320 (added to the mortgage), and the 8% PST on it is $1,785.60, paid at closing. In Toronto, the same purchase would add another $8,000 after the $4,475 MLTT rebate.
How can first-time buyers in Durham prepare?
Get pre-approved, ask your lender for a fee estimate, and get a written lawyer quote early. See our buyer calculators and true cost of buying a home in Ontario. If we represent you, our commission is set out in your buyer representation agreement before you see homes. It’s negotiable; commonly around 2.5%, in our experience, plus HST. A seller may offer to pay some or all of it through their listing, and we’ll explain how that works for each home before you make an offer.
Who we help: first-time buyers across Durham Region, including Pickering, Ajax, Whitby, Oshawa and Clarington, and across the GTA, including Toronto and York Region.
Buying your first home in Durham?
We’ll help you map out the full cost before you make an offer.
Or contact us: call or text 416-845-8433, or email alex@aaproperties.ca.
Frequently asked questions
How much is the first-time buyer land transfer tax refund in Ontario?
Up to $4,000. Eligible first-time buyers pay no Ontario land transfer tax on homes up to $368,000, and above that the refund is capped at $4,000. It is usually claimed by your lawyer at registration.
Does Pickering or Ajax have a municipal land transfer tax?
No. Pickering, Ajax and the rest of Durham Region charge no municipal land transfer tax. Within Ontario, the City of Toronto charges one, under powers in the City of Toronto Act, 2006.
Can I add the PST on CMHC insurance to my mortgage?
No. The mortgage insurance premium can usually be added to your loan, but Ontario’s 8% retail sales tax on that premium can’t. Your lawyer collects it on closing.
Who qualifies as a first-time buyer for the Ontario refund?
You must be 18 or older, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and occupy the home within nine months. A spouse can’t have owned a home while your spouse.
Does AA Properties help first-time buyers outside Durham?
Yes. We focus on Durham Region, including Pickering, Ajax, Whitby, Oshawa and Clarington, and also help first-time buyers across the GTA, including Toronto and York Region.
Can I pay the land transfer tax out of my mortgage?
No. Land transfer tax is due when your lawyer registers the deed on closing, so plan to have it in cash along with your down payment, the PST on any CMHC premium, legal fees and adjustments. A first-time buyer refund is usually applied right at registration.
Alex Antsyferov is a Broker and the founder of AA Properties, Crown Kingdom Realty Inc., Brokerage, 18-1725 Kingston Rd, Pickering ON L1V 4L9.
The information in this blog is deemed accurate but not guaranteed. It’s for general purposes only and isn’t legal, financial or tax advice.
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