How Much Are Closing Costs in London, Ontario?

A safe rule of thumb:

Plan for 1.5% to 3% of the purchase price.

On a $600,000 home, that means roughly:

• $9,000 to $18,000 in closing costs

Some lenders will quote closer to the low end, but in practice, most buyers should budget toward the middle to upper range to avoid surprises.

The Main Closing Costs (What You’re Actually Paying For)

1. Land Transfer Tax (The Big One)

This is typically your largest closing cost.

• Paid by the buyer in Ontario
• Calculated based on purchase price (tiered system)

Example: approximately $6,475 on a $500,000 home

Good news:
First-time buyers can receive up to a $4,000 rebate, which can significantly reduce this cost.

Important: London does not have a municipal land transfer tax, so you only pay the provincial amount.

2. Legal Fees and Disbursements

You’ll need a real estate lawyer to close the transaction.

Typical costs:

• $1,000 to $2,000+ depending on complexity

This covers title searches, document preparation, mortgage registration, and coordination of funds.

3. Title Insurance

• Typically $300 to $600
• Protects against title issues, fraud, or errors

Most lenders require this.

4. Registration and Administrative Fees

These include:

• Title registration
• Mortgage registration
• Government filing fees

Usually a few hundred dollars in total.

5. Adjustments (Often Overlooked)

This is where many buyers get caught off guard.

You may need to reimburse the seller for:

• Property taxes already paid
• Utilities
• Condo fees (if applicable)

This can range from a few hundred to a few thousand dollars depending on timing.

6. Additional Costs to Plan For

Not always required, but common:

• Home inspection: $400 to $700
• Appraisal (if required): $300 to $500
• Moving costs
• Utility hookups or deposits

What Buyers Get Wrong

Most buyers:

• Budget for the down payment
• Underestimate closing costs

Reality:
Closing costs must be paid in cash and typically cannot be added to your mortgage.

Real Example (London, Ontario)

On a $700,000 purchase:

• Land Transfer Tax: ~$10,475
• Legal Fees: ~$1,500
• Title Insurance: ~$400
• Adjustments and miscellaneous: ~$2,000

Total: ~$14,000 to $18,000

Bottom Line

If you’re buying in London, Ontario:

• Expect closing costs between 1.5% and 3%
• Your largest cost will be land transfer tax
• First-time buyers benefit from rebates
• Budget conservatively to avoid last-minute stress

Final Thought

The biggest mistake isn’t the cost—it’s being surprised by it.

Plan properly, and closing day is smooth. Don’t, and it becomes stressful quickly.