First-Time Home Buyer York Region | Closing Costs and Rebates

by Jonathan Colford

York Region First-Time Buyer Guide

First-Time Home Buyer Closing Costs and Rebates in York Region

The price on the offer is only part of what you pay. Here is how closing costs add up in Ontario, and which rebates and savings programs may help first-time buyers.

Jonathan Colford | Sales Representative | eXp Realty Brokerage

Local insight from Jonathan Colford, York Region Real Estate Agent.

Plan Your Closing Costs Talk to Jonathan

Many first-time buyers budget carefully for the down payment, then discover closing costs on top of it.

Closing costs are the one time expenses you pay when your purchase completes. In Ontario they typically include land transfer tax, legal fees, title insurance, adjustments and other items, and they are usually due on or just before closing. Planning for them early keeps your approval, your down payment and your budget aligned.

This guide focuses on the costs and the rebates that matter most to first-time buyers in York Region. For the wider journey, start with our first-time home buyer guide for York Region. This article is general information only and does not replace advice from your lawyer, lender or accountant.

In short: budget for land transfer tax, legal fees, adjustments and moving costs on top of your down payment, claim the Ontario first-time buyer refund of up to $4,000 if you qualify, and use programs such as the FHSA and the Home Buyers' Plan to build your down payment.

Costs

Know the line items

Land transfer tax, legal fees, title insurance, inspection, adjustments and moving costs all need a place in your budget.

Rebates

Claim what you qualify for

Ontario offers a land transfer tax refund of up to $4,000 for eligible first-time buyers, and federal programs may help too.

Savings

Build the down payment

The FHSA and the Home Buyers' Plan can help first-time buyers save and use funds toward a purchase.

The main closing costs for buyers in Ontario

Ontario land transfer tax, which is based on the purchase price and paid at closing
Legal fees and disbursements for your lawyer to complete the purchase, register title and handle the funds
Title insurance, which your lawyer typically arranges at closing
Home inspection, and an appraisal if your lender requires one
Adjustments for items such as prepaid property taxes, utilities or condominium fees
Provincial sales tax on mortgage default insurance premiums, if your down payment is under 20 percent
Moving costs, utility set up, and immediate repairs or purchases for the new home

Ask your lawyer for a written estimate early in the process, and ask your lender what you will need to prove at closing. Our guide on mortgage pre-approval in 2026 explains what lenders review.

Ontario land transfer tax and the first-time buyer refund

When you buy property in Ontario you pay land transfer tax to the province at closing. First-time buyers of an eligible home may qualify for a refund of up to $4,000. On homes priced at $368,000 or less, that effectively covers the full tax, and on higher priced homes the maximum refund is $4,000.

To qualify, you must be at least 18, be a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and occupy the home as your principal residence within nine months of closing. If you have a spouse, they cannot have owned a home while they were your spouse. Your lawyer can usually claim the refund at registration, or you can apply to the Ministry of Finance within 18 months. If you buy in the City of Toronto, a separate municipal tax applies, but most York Region municipalities do not charge one.

If you are buying with someone who is not a first-time buyer, the refund is generally reduced in proportion. Ask your lawyer how it applies to your situation.

Federal programs for first-time buyers

First Home Savings Account (FHSA)

The FHSA lets eligible first-time buyers save for a qualifying first home with contributions that are generally tax deductible. Participation room is $8,000 in the first year, and withdrawals used for a qualifying home are tax free under the program rules.

Home Buyers' Plan (HBP)

The HBP allows you to withdraw from your RRSP to buy or build a qualifying home. The current withdrawal limit is $60,000, and you can combine an HBP withdrawal with a qualifying FHSA withdrawal for the same home. Repayment rules apply, and the Canada Revenue Agency has extended temporary repayment relief for first withdrawals made from 2026 to 2028.

Home Buyers' Amount

First-time buyers may also claim a federal non-refundable tax credit amount of up to $10,000 for the year of purchase, which can produce a credit of up to $1,500. Your accountant can confirm how it applies.

New build buyers: extra rebates to know about

If you are buying a newly built home, additional federal and provincial relief may apply for eligible first-time buyers, and the details have changed recently. Read our guide on pre construction in York Region and confirm the current rules with your lawyer and lender before you rely on any figure.

A simple way to plan your cash to close

Start with your down payment and add a buffer for closing costs
Ask your lawyer for an estimate of land transfer tax, fees and adjustments, and note the refund you may receive
Keep your funds in accounts you can document, since lenders and lawyers may need to verify their source
Hold extra cash for the inspection, moving and first few weeks in the home
Revisit your budget when the offer is accepted and again before closing

Preparing a budget before you shop also strengthens your offers. Our guide on what buyers should review before making an offer walks through the next step, and you can compare the cost of owning versus renting in York Region.

Frequently asked questions

How much are closing costs for a first-time buyer in Ontario?

The amount depends on the purchase price, your mortgage and your lawyer's fees. Land transfer tax is usually the largest item. Ask your lawyer for an estimate and subtract any refund you expect to receive.

How much is the Ontario land transfer tax refund for first-time buyers?

Eligible first-time buyers can receive a refund of up to $4,000. On homes priced at $368,000 or less, no land transfer tax is payable after the refund.

Do I pay Toronto land transfer tax in York Region?

The City of Toronto charges its own municipal land transfer tax, but most York Region municipalities do not. Confirm with your lawyer for your specific purchase.

Can I use both the FHSA and the Home Buyers' Plan?

Yes, you can make an HBP withdrawal from your RRSP and a qualifying FHSA withdrawal for the same qualifying home if you meet all conditions at the time of each withdrawal. Confirm eligibility with the Canada Revenue Agency or your advisor.

When do I pay closing costs?

Closing costs are generally due on or shortly before closing day, and your lawyer will tell you the exact amount and how to deliver the funds.

What if I am buying with a partner who owned a home before?

The land transfer tax refund may be reduced or unavailable depending on ownership history and whether you are spouses. Speak with your lawyer early so your budget reflects the real amount.

Official resources

Rebates and program rules can change. Use official sources and confirm details with your lawyer, lender and accountant.

Ontario: Land Transfer Tax Refunds for First-Time Homebuyers Canada Revenue Agency: First Home Savings Account Canada Revenue Agency: Home Buyers' Plan Ontario: Land Transfer Tax

This article provides general real estate information as of October 2026. Rules, rebates, mortgage costs and market conditions may change. It does not provide legal, financial, mortgage, tax or accounting advice. Confirm details with a lawyer, lender, accountant and the applicable authority.