Rates & comparisons
The Complete Niagara Closing Cost Guide: Land Transfer Tax, the $4,000 Rebate, PST on CMHC and Legal Fees
Your down payment is not the only cash you need on closing day. Here is every cost a Niagara buyer pays through the lawyer, with exact land transfer tax for all 12 municipalities and a full worked example.
Reviewed November 13, 2026 · Indicative figures, OAC
The closing costs at a glance
On top of your down payment, a Niagara purchase comes with a short list of cash costs: Ontario land transfer tax, legal fees and disbursements, an inspection, and, if you put less than 20% down, the 8% provincial sales tax on your mortgage insurance premium. The good news: Niagara has no municipal land transfer tax.
- LTT on a $530,000 home
- $7,075
- First-time buyer refund
- Up to $4,000
- Municipal LTT in Niagara
- $0
- Lawyer, title insurance, disbursements
- ≈ $1,850
Ontario land transfer tax brackets
Land transfer tax (LTT) is charged by the province on the price of the home, in marginal brackets like income tax. For single-family residences:
| Portion of the price | Rate | Tax on a full bracket |
|---|---|---|
| Up to $55,000 | 0.5% | $275 |
| $55,000 to $250,000 | 1.0% | $1,950 |
| $250,000 to $400,000 | 1.5% | $2,250 |
| $400,000 to $2,000,000 | 2.0% | $32,000 |
| Above $2,000,000 | 2.5% | n/a |
On a $530,000 St. Catharines home: $275 + $1,950 + $2,250 + 2.0% × $130,000 ($2,600) = $7,075. Toronto buyers pay a second, municipal land transfer tax on top of the provincial one; Niagara buyers do not, in any of the 12 municipalities.
LTT in every Niagara municipality
At each municipality's benchmark price, here is the provincial LTT and what a qualifying first-time buyer pays after the refund of up to $4,000.
| Municipality | Benchmark price | Ontario LTT | After $4,000 first-time refund |
|---|---|---|---|
| Port Colborne | $475,000 | $5,975 | $1,975 |
| Welland | $485,000 | $6,175 | $2,175 |
| Fort Erie | $485,000 | $6,175 | $2,175 |
| Thorold | $525,000 | $6,975 | $2,975 |
| St. Catharines | $530,000 | $7,075 | $3,075 |
| Niagara Falls | $565,000 | $7,775 | $3,775 |
| Wainfleet | $635,000 | $9,175 | $5,175 |
| West Lincoln | $660,000 | $9,675 | $5,675 |
| Lincoln | $695,000 | $10,375 | $6,375 |
| Grimsby | $725,000 | $10,975 | $6,975 |
| Pelham | $795,000 | $12,375 | $8,375 |
| Niagara-on-the-Lake | $865,000 | $13,775 | $9,775 |
The first-time buyer refund covers the full tax up to a price of about $368,000. Eligibility rules are set by the province (generally, you must never have owned a home anywhere and must move in within nine months); your real estate lawyer confirms them and claims the refund at registration.
The 8% PST on mortgage insurance
With less than 20% down, the CMHC, Sagen or Canada Guaranty premium (2.80% to 4.00% of the loan, plus 0.20% on a 30-year insured amortization) is added to your mortgage. Ontario charges 8% provincial sales tax on that premium, and the PST cannot be added to the mortgage. It is paid in cash on closing through your lawyer, and it is the line that surprises buyers most. On a $475,000 Port Colborne purchase with 5% down, the premium is $18,050 and the PST is $1,444.
Every closing cost, line by line
Worked example: first-time buyer, $530,000 in St. Catharines, 5% down
Minimum down is 5% × $530,000 = $26,500, leaving a $503,500 base loan. On a 25-year amortization the premium is 4.00%, or $20,140, added to the mortgage for a total of $523,640.
| Item | Amount |
|---|---|
| Down payment | $26,500.00 |
| 8% PST on the $20,140 premium | $1,611.20 |
| Ontario LTT $7,075 minus $4,000 first-time refund | $3,075.00 |
| Municipal LTT | $0.00 |
| Lawyer, title insurance and disbursements (budget) | $1,850.00 |
| Home inspection (budget, range $450–$650) | $550.00 |
| Appraisal (often lender-paid on insured files) | $0.00 |
| Total cash to close | $33,586.20 |
| Closing costs excluding the down payment | $7,086.20 (1.34% of price) |
Add the usual adjustments on your lawyer's statement, such as property tax or utilities the seller has prepaid. Those vary by closing date; your lawyer will give you the final figure a few days before closing.
For comparison, a repeat buyer paying $725,000 in Grimsby with 20% down needs $145,000 down plus $10,975 LTT (no refund), about $1,850 in legal costs and an inspection: roughly $13,375 in closing costs, with no premium and no PST.
Rural and new-build extras
- Rural homes in Wainfleet, West Lincoln, Pelham, Lincoln and NOTL: a well water potability test (and sometimes a flow test), and a septic inspection at about $400–$800. Homes on cisterns need a potable water test too. See rural mortgages.
- Appraisal at $350–$550 when the lender does not cover it, more often on conventional and rural files.
- New homes: read the closing-adjustment schedule in your agreement of purchase and sale with your lawyer before you sign. First-time buyers may qualify for the federal GST rebate (up to $50,000 on new homes up to $1M, phased out to $1.5M) and Ontario's matching rebate of the provincial part of HST (up to $80,000 on homes up to $1M); confirm eligibility and timing with your real estate lawyer. See new-build mortgages.
Closing-day timeline
- Offer accepted. Send the agreement of purchase and sale to your broker and your real estate lawyer the same day; financing and inspection conditions usually run five to ten business days.
- Conditions waived. The lender issues its commitment; you sign it and return any outstanding documents, such as proof of down payment and a gift letter if one applies.
- About two weeks before closing. Arrange home insurance and send the binder to your lawyer; the lender will not advance funds without it.
- A few days before closing. Your lawyer sends the statement of adjustments with the exact cash to close, including LTT, PST on the premium and adjustments. Wire or deliver the funds as instructed.
- Closing day. The lawyer registers the transfer and mortgage, pays the LTT, claims any first-time refund, and releases the keys.
Where the cash can come from
- FHSA: $8,000 a year, $40,000 lifetime, tax-deductible going in and tax-free coming out for a first home.
- RRSP Home Buyers' Plan: up to $60,000 per person ($120,000 per couple), repaid over 15 years.
- Gifts from immediate family, documented with a signed gift letter and proof the funds are in your account.
Ask your accountant how FHSA and HBP withdrawals fit your tax picture. To model your own purchase with all of these costs, use the Niagara payment and closing cost calculator, or read the first-time buyer guide.
Frequently asked questions
Is there a municipal land transfer tax in Niagara?
No. None of Niagara's 12 municipalities charges a municipal land transfer tax. Toronto does, which means a Toronto buyer pays two land transfer taxes; a Niagara buyer pays only the Ontario LTT.
How much is land transfer tax on a $530,000 home in Ontario?
$7,075: $275 on the first $55,000, $1,950 on the next $195,000, $2,250 on the next $150,000 and $2,600 on the remaining $130,000. A qualifying first-time buyer gets up to $4,000 back, so pays $3,075.
Can I add the PST on CMHC insurance to my mortgage?
No. In Ontario the 8% PST on the default insurance premium must be paid in cash on closing through your lawyer. The premium itself is added to the mortgage. On a $20,140 premium, the PST is $1,611.20.
How much should I budget for closing costs in Niagara?
For a first-time buyer at St. Catharines' $530,000 benchmark with 5% down, closing costs excluding the down payment come to about $7,086: $1,611.20 PST, $3,075 net LTT, about $1,850 legal and about $550 for an inspection, before adjustments. Many lenders want to see about 1.5% of the price available.
Who qualifies for the $4,000 first-time buyer land transfer tax refund?
Generally, an Ontario buyer who has never owned a home anywhere in the world, and who moves in within nine months of purchase. The refund covers the full LTT up to a price of about $368,000. Your real estate lawyer confirms eligibility and claims it when the purchase is registered.
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