Cottage closing costs

Add up Ontario land transfer tax, legal fees, inspections, water and septic tests and the other cottage closing costs before you make an offer.

Your numbers

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Include the 25% Ontario NRST scenario?
Closing costs$13,050

That is about 2% of the price. No first-time buyer refund is assumed. A qualifying first home occupied as your principal residence may qualify.

Ontario land transfer tax$9,475
Lawyer, fees and disbursements$1,800
Title insurance$350
Home inspection$750
Septic inspection$400
Well water bacteria test (free)$0
Water chemistry test$0
Wood stove (WETT) inspection$275
Survey$0
Tax, fuel and utility adjustments$0
Edit the fees
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Typical $1,000 to $2,500. Rural files often land at the high end.
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Example only. Replace with your quote.
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Typical $500 to $1,000 or more for a rural place.
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Typical $250 to $500, more if it needs a pump-out.
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The well bacteria test is free through Public Health Ontario. A chemistry test is done by a private lab. Enter your quote.
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Typical $200 to $350. Insurers usually ask for one.
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Costs vary a lot. Ask a local surveyor.
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Your lawyer works these out at closing.

Estimate only. Land transfer tax uses Ontario's current brackets. Fees are editable examples, not quotes. Mortgage insurance tax, HST on a taxable purchase and any local taxes are additional where applicable. This tool does not establish whether a purchase is legally permitted.

Plan my cash to close

How this works

Closing costs are the cash you pay on top of the down payment. In Ontario, land transfer tax is the largest piece.

Cottages add inspections a city house does not need: septic, well water and wood stove. The calculator starts with typical amounts you can replace with real quotes.

A worked example

On a $650,000 cottage, Ontario land transfer tax is $9,475. Add the editable example fees for legal work, title insurance and inspections and the total is about $13,050 before adjustments.

What the numbers assume

  • Ontario land transfer tax: 0.5% to $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2,000,000 and 2.5% above.
  • The estimate does not subtract a first-time buyer refund. Principal-residence occupancy within nine months and other conditions may make an eligible purchase qualify. Toronto tax is not included.
  • The NRST toggle adds a 25% scenario. Foreign-national, corporation and trustee rules, exemptions and rebates need legal review; tax residency alone does not decide it.
  • Well bacteria testing is free through Public Health Ontario. Chemistry tests are done by private labs.
  • Fees are typical ranges from Ontario sources, not quotes.

Common questions

How much are closing costs on a cottage in Ontario?
Add the land transfer tax, quoted legal and inspection fees, and closing adjustments. On a $650,000 cottage, Ontario land transfer tax alone is $9,475. Insurance-premium tax or HST may be additional.
Do I get the first-time buyer land transfer tax refund on a cottage?
It may be available if the purchase becomes your principal residence within nine months and you meet the other first-time buyer, spouse and status conditions. An ordinary second cottage does not meet the occupancy requirement.
Is the well water test really free?
Yes. Public Health Ontario tests private well water for E. coli and total coliforms at no charge. Pick up a sterile bottle and drop it off. Chemistry tests are extra.
Do Americans pay extra tax to buy a cottage in Ontario?
Ontario’s 25% NRST can apply to foreign nationals and certain corporations and trustees. Have the lawyer check the buyer’s status and any exemption. Americans buying a cottage in Ontario covers the federal rules too.
Do I need a septic inspection?
It is worth it on any cottage. A failed septic system can cost far more than the inspection, and some townships run their own re-inspection programs.

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