The purchase price is only part of what it costs to buy a home. This article lists the closing costs a buyer in Mississauga should budget for in 2026, which ones are fixed by law, which ones depend on the property, and how to estimate them before you make an offer.
1. Ontario land transfer tax
The largest closing cost for most buyers is the provincial land transfer tax, paid when the transfer is registered. It is calculated on the purchase price in bands: 0.5 per cent on the first $55,000; 1 per cent on the portion from $55,000 to $250,000; 1.5 per cent from $250,000 to $400,000; 2 per cent from $400,000 to $2,000,000; and 2.5 per cent on the portion above $2,000,000 for a home with one or two single-family residences.
Worked example: on a $900,000 home the tax is $275 + $1,950 + $2,250 + $10,000 = $14,475. Mississauga buyers pay only the provincial tax; the separate municipal land transfer tax applies to properties inside the City of Toronto, not in Peel Region.
First-time buyers can claim a refund of up to $4,000 of the provincial tax, which covers the full tax on a purchase price up to about $368,000. To qualify you must be at least 18, have never owned a home anywhere in the world, and occupy the home as your principal residence within nine months of closing; if your spouse has owned a home while being your spouse, that affects your eligibility. The refund is normally claimed at closing by your lawyer, so no cash changes hands.
2. Non-resident speculation tax and the federal ban
Buyers who are not Canadian citizens or permanent residents face two extra rules. Ontario’s non-resident speculation tax is 25 per cent of the price on residential property anywhere in Ontario, with exemptions and rebates for nominees, protected persons and some spouses, and a rebate route for buyers who later become permanent residents. Separately, federal law restricts most non-Canadians from buying residential property at all; the restriction has been extended to the start of 2027, with exceptions for certain work-permit and study-permit holders. If this may apply to you, get advice before signing an offer, because the tax and the ban both attach to the purchase, not to the mortgage.
3. HST on new homes
Resale homes are not subject to HST. New homes and pre-construction condominiums are, and builders’ prices are usually quoted with HST included on the assumption that you qualify for the new housing rebates and assign them to the builder. If you will not occupy the home as your primary residence, for example because you intend to rent it out, the rebate assumption fails and the builder can require you to pay the rebate amount on closing; a separate rental rebate may be available afterwards. Our new construction page explains the builder’s agreement and what to check before the final closing.
4. Adjustments on the statement of adjustments
On closing day the seller and buyer settle up for costs that straddle the closing date. The most common are property taxes the seller has prepaid, condominium common expenses paid for the month, prepaid utilities or a rental hot-water tank, and, on a new condominium, the builder’s items such as development charge credits, utility hook-ups and the Tarion enrolment fee. These adjustments are added to or deducted from the amount you bring to closing, and the statement of adjustments is one of the documents we review with you before you sign.
5. Mortgage-related costs
If your down payment is less than 20 per cent, mortgage default insurance is required and the premium is added to the mortgage; the Ontario sales tax on that premium, however, cannot be added and is paid in cash on closing. Lenders may also charge an appraisal fee, and some discharge or set-up fees apply when a mortgage is being switched. Ask your lender for the full list in writing. Our mortgage refinance page covers the costs on the lending side in more detail.
6. Legal fees, disbursements and title insurance
Your lawyer’s account has three parts: the fee for the work, disbursements paid to others on your behalf (title search and registration fees in the electronic land registration system, execution searches, courier and software charges), and the title insurance premium if you choose a policy. Title insurance is a one-time premium that protects against problems with the title, survey and certain kinds of fraud, and most lenders require at least a lender’s policy. Law Wise quotes the fee for a purchase before you retain the firm, and confirms it in writing when you do. The disbursements and premium depend on the property and are itemized on the account.
7. Costs before closing that are easy to forget
- Deposit. Paid within 24 hours of acceptance in most Ontario agreements and credited to the price on closing.
- Home inspection. Optional, but inexpensive compared with what it can find.
- Status certificate (condominiums). The corporation’s fee for a status certificate is capped by the Condominium Act, 1998; the review of it is part of the legal work. See our condominium page.
- Home insurance. Must be in place on closing day; the lender will ask for proof.
- Moving, utility set-up and locks. Change the locks on day one.
A simple budget
For a resale home in Mississauga, a reasonable planning figure for closing costs is the land transfer tax plus one to two per cent of the price for everything else, before any first-time buyer refund. On the $900,000 example that is roughly $14,475 in tax plus $9,000 to $18,000 in other costs, less $4,000 if you are a first-time buyer. New construction adds HST considerations and builder adjustments on top. Bring the agreement of purchase and sale to a lawyer before the conditions expire and you will have a closing-cost estimate, not a guess. Our residential purchase page describes the full closing process, and our real estate page lists everything we handle.
Common questions
Can closing costs be added to the mortgage?
Generally no. Lenders finance the purchase price (less your down payment), not the land transfer tax, legal costs or adjustments, so those amounts must be available in cash on closing. The default insurance premium is the main exception.
When is the land transfer tax paid?
On the closing date, when the transfer is registered electronically. Your lawyer collects it from you with the balance due on closing and remits it as part of the registration.
Is Mississauga subject to Toronto’s municipal land transfer tax?
No. The municipal tax applies only to property within the City of Toronto. Mississauga, Brampton, Oakville and the rest of the GTA pay the provincial tax alone.
This article is general legal information about Ontario and federal law as of 22 October 2026. Tax rates, rebates and the federal restriction on non-Canadian buyers change; confirm the current figures before relying on them. It is not legal advice, and reading it does not make you a client of Law Wise Professional Corporation.