Closing Costs Markham Ontario 2026 — Complete Buyer Guide | Michael John Lau REALTOR®
Markham · Ontario · 2026

Closing Costs in Markham — Every Dollar, Explained

The complete guide to every closing cost Markham buyers pay in 2026. Ontario Land Transfer Tax calculator, legal fees, CMHC insurance, title insurance, and all available first-time buyer rebates — by a CPA who does this every day.

No municipal LTT in Markham (unlike Toronto)
First-time buyer rebate up to $4,000
2026 HST rebate on new construction
Budget 3–5% of purchase price
3–5%Closing Cost Budget Rule
$16,475LTT on $1M Purchase
$4,000Max LTT Rebate (FTB)
$0Municipal LTT in Markham
$130KMax HST Rebate (New Homes)
Full Breakdown

Closing Costs for a $1,000,000 Markham Home

The following breakdown represents a typical resale transaction in Markham at the $1,000,000 price point. Markham is in York Region — which means you pay only the provincial Land Transfer Tax. Unlike Toronto, there is no additional municipal Land Transfer Tax. This saves Markham buyers thousands compared to a comparable Toronto purchase.

Closing Cost Item Estimated Amount
Ontario Land Transfer Tax (LTT) ~$16,475
Provincial LTT Rebate — First-Time Buyers Up to −$4,000
Legal Fees + Disbursements $1,500 – $2,500
Title Insurance $300 – $500
Home Inspection $400 – $600
CMHC Mortgage Default Insurance (if <20% down) $0 – $40,000+
Property Tax Adjustment (pre-paid by seller) $500 – $2,000
Utility Adjustments $100 – $500
Home Insurance (first year) $1,500 – $3,000
Moving Costs $1,000 – $3,000
Status Certificate Review — Condos Only $100 – $300
Buyer Agent Commission $0 (paid by seller in most resale)
Total Estimated Closing Costs $20,000 – $61,000+

* Based on a $1,000,000 resale purchase in Markham, Ontario, 2026. LTT per Ontario provincial schedule. Amounts are estimates — consult your real estate lawyer for exact figures before closing.

Important: The Deposit vs. Closing Costs

Your deposit (typically 5% of purchase price = $50,000 on a $1M home) is not a closing cost — it becomes part of your down payment at closing. However, it must be available as a certified cheque or wire within 24 hours of offer acceptance. Ensure it is liquid before you begin your search.

Ontario Land Transfer Tax Calculator — 2026

Ontario LTT Payable $16,475
Provincial Land Transfer Tax
After First-Time Buyer Rebate $12,475
Max rebate $4,000
If Purchasing in Toronto $32,950
Provincial + Municipal LTT
Markham Advantage vs Toronto $16,475 saved
No municipal LTT in Markham

Estimates only. Ontario LTT per provincial schedule. Toronto Municipal LTT mirrors provincial rates. Consult your real estate lawyer for exact closing amounts.

What is Included in Legal Fees?

Your real estate lawyer's fees include: title search, title registration, reviewing the agreement of purchase and sale, reviewing condo status certificate (if applicable), coordinating with the lender, and registering the transfer on closing day.

Disbursements are third-party costs paid on your behalf: government registration fees, title insurance premiums, courier fees, and search certificates. Always get a written estimate from your lawyer before closing.

How LTT is Calculated

Ontario Land Transfer Tax — The Full Rate Schedule

Ontario's LTT is a marginal tax — like income tax. You pay different rates on different portions of the purchase price, not one rate on the whole amount.

Purchase Price Portion LTT Rate
First $55,000 0.5%
$55,001 to $250,000 1.0%
$250,001 to $400,000 1.5%
$400,001 to $2,000,000 2.0%
Over $2,000,000 2.5%

Markham buyers pay only the provincial LTT — unlike City of Toronto buyers who pay both the provincial LTT and an identical Municipal Land Transfer Tax. On a $1,000,000 purchase, this saves Markham buyers approximately $16,475 versus Toronto. On a $1.5M purchase, the saving exceeds $26,000.

Worked Example: $1,200,000 Markham Purchase

0.5% on first $55,000 $275
1.0% on $55,001 – $250,000 $1,950
1.5% on $250,001 – $400,000 $2,250
2.0% on $400,001 – $1,200,000 $16,000
Total Ontario LTT $20,475
First-Time Buyer Rebate (max) −$4,000
Net LTT After Rebate (FTB) $16,475

Worked Example: $800,000 Condo Purchase

0.5% on first $55,000 $275
1.0% on $55,001 – $250,000 $1,950
1.5% on $250,001 – $400,000 $2,250
2.0% on $400,001 – $800,000 $8,000
Total Ontario LTT $12,475
First-Time Buyer Rebate (max) −$4,000
Net LTT After Rebate (FTB) $8,475
Save More at Closing

Government Rebates and Programs — Ontario 2026

First-time buyers and all new construction buyers in 2026 have access to significant savings that reduce closing costs. Michael advises every buyer on which programs apply before any offer is signed.

2026 Limited Time
Up to $130,000
Full HST Rebate — New Construction

Buyers who sign a purchase agreement on a new home valued up to $1,000,000 between April 1, 2026 and March 31, 2027 qualify for a full 13% HST rebate — up to $130,000. The most significant new home tax incentive Ontario has ever introduced. Applies to new builds, pre-construction, and qualifying assignments.

Up to $4,000
Ontario LTT Rebate — First-Time Buyers

First-time home buyers in Ontario receive a full rebate on the provincial Land Transfer Tax up to $4,000. On an $800,000 purchase, this can eliminate most of the LTT payable. You must qualify as a first-time buyer (never previously owned a home) and the property must be your principal residence.

Up to $1,500
First-Time Home Buyers' Tax Credit (FHBTC)

A federal non-refundable tax credit of 15% on up to $10,000 of eligible home purchase expenses, worth up to $1,500 in tax savings. Claimed on your federal tax return for the year you purchase. Applies to all first-time buyers of qualifying homes in Canada.

Up to $40,000
First Home Savings Account (FHSA)

Contribute up to $8,000/year and $40,000 lifetime toward a first home. Contributions are tax-deductible like an RRSP, and qualifying withdrawals are completely tax-free like a TFSA. The optimal savings vehicle for first-time buyers — ideally opened years before you plan to purchase.

Up to $60,000
RRSP Home Buyers' Plan

Withdraw up to $60,000 per person ($120,000 per couple) tax-free from your RRSP for a qualifying first home purchase. The amount must be repaid to your RRSP over 15 years. Ideal for buyers with accumulated RRSP savings before purchasing their first home.

Varies
New Home HST Rebate (Standard)

Beyond the 2026 temporary full rebate, Ontario offers a standard new home HST rebate on a sliding scale for homes under $450,000 (36% of the 8% provincial portion, max $24,000). Michael calculates all applicable HST rebates before any new construction offer is finalized.

Budget by Price Point

Closing Cost Estimates by Purchase Price

How much should you budget for closing costs on different purchase prices in Markham? Here's a quick reference guide. All amounts assume resale transaction, no CMHC required (20%+ down).

Entry-Level
$700,000
Ontario LTT$8,475
Less FTB Rebate−$4,000
Legal Fees + Disbursements~$2,000
Title Insurance~$350
Home Inspection~$500
Home Insurance + Moving~$3,000
Est. Total (after FTB rebate)~$10,325
Most Common
$1,100,000
Ontario LTT$18,475
Less FTB Rebate (if eligible)−$4,000
Legal Fees + Disbursements~$2,200
Title Insurance~$400
Home Inspection~$500
Home Insurance + Moving~$4,000
Est. Total (after FTB rebate)~$21,575
Luxury
$2,000,000
Ontario LTT$36,475
FTB Rebate (rarely applicable)
Legal Fees + Disbursements~$3,500
Title Insurance~$600
Home Inspection~$600
Home Insurance + Moving~$6,000
Est. Total~$47,175

* Estimates only. Does not include CMHC insurance (assumes 20%+ down). Adjustments, utility costs, and condo-specific fees not included. Consult your real estate lawyer for exact amounts before closing.

Common Questions

Closing Cost Questions Answered

Common questions about closing costs when buying in Markham — answered directly and honestly by Michael John Lau, REALTOR® CPA, CMA.

Still have questions? Call Michael at (416) 700-0286.

When are closing costs due?
Closing costs are due on closing day — the day your lawyer registers the title transfer. Your lawyer will provide a statement of adjustments (a final accounting) a few days before closing, showing every amount payable. You'll need to wire the required funds (net of your mortgage proceeds and deposit) to your lawyer's trust account before closing day. Never leave this to the last minute — confirm the exact amount with your lawyer one week before closing.
Does Markham have a municipal Land Transfer Tax like Toronto?
No. Markham is in York Region, which does not have a municipal Land Transfer Tax. Only the City of Toronto imposes a second, municipal-level LTT on top of the provincial one. Markham buyers pay only the Ontario provincial LTT — which means savings of approximately $16,475 on a $1M purchase, $26,000+ on a $1.5M purchase, versus a comparable Toronto home.
Do I pay closing costs on top of my down payment?
Yes. Your closing costs are separate from your down payment and must be paid in addition to it. Your deposit (typically 5% of purchase price, paid on acceptance of your offer) becomes part of your down payment — but your closing costs are on top. On a $1M purchase, this means having your down payment (e.g., $200,000 for 20%) plus closing costs (e.g., $20,000–$30,000) available at the time of closing. Budget for both well in advance.
What is title insurance and do I need it?
Title insurance is a one-time premium paid at closing that protects you and your lender against title defects, fraud, survey errors, liens, and encroachments discovered after closing. It is not legally mandatory but universally recommended and required by most lenders. The cost is modest ($300–$500 on a $1M property) compared to the protection it provides. If a title defect is discovered years after closing, your insurer covers it. Without it, you bear the legal and financial risk yourself.
What is a property tax adjustment and why do I pay it?
Property taxes are paid by the seller in advance for the full year. When you take possession mid-year, the seller has likely pre-paid tax for the period after your closing date. On your closing statement, you'll see an adjustment where you reimburse the seller for the taxes they paid on your behalf. This is typically $500–$2,000 depending on when in the year you close and the assessed value of the property.
What closing costs apply to a condo purchase in Markham?
Condo purchases have all the standard closing costs plus: a Status Certificate review fee paid to your lawyer ($100–$300) to review the condo corporation's finances, rules, and pending litigation. You should also budget for possible special assessments revealed in the status certificate. Condos in new buildings often have additional development charges, educational levies, and Tarion warranty enrollment fees — always review the disclosure statement before signing for a pre-construction condo.
How much is CMHC insurance and when do I pay it?
CMHC mortgage default insurance is required when your down payment is less than 20% of the purchase price. The premium ranges from 2.80% to 4.00% of the mortgage amount, depending on your down payment percentage. The premium is added to your mortgage balance at closing — you do not pay it upfront in cash. However, it does increase your total mortgage and thus your monthly payment. On a $1M purchase with 5% down ($50,000), CMHC is 4% of $950,000 = $38,000 added to your mortgage.
Know Your Numbers Before You Buy

Want a Closing Cost Estimate for Your Specific Situation?

Every buyer's closing costs are different. Michael will model your exact closing costs — including which programs you qualify for — before you make any offer. Book your free consultation and go into your purchase fully informed.

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