What Closing Costs Buyers Pay In Ontario

Buying a home in Ontario is exciting, but the final numbers can feel mysterious. You know you need a down payment, yet “closing costs” often come as a surprise. The good news is you can predict most of these fees before you write an offer.

In this guide, you’ll learn what closing costs are, which ones buyers in Ontario typically pay, how much to budget, and simple ways to reduce your out-of-pocket total. You will also get a clear process to estimate your cash to close. Let’s dive in.

What closing costs are

Closing costs are the one-time fees and prepaid items due when you finalize your home purchase and loan. They are separate from your down payment. In California, buyers commonly budget around 2% to 5% of the purchase price for closing costs, depending on loan type, local fees, and negotiated credits. Your exact number will depend on your property, loan program, and timing.

Typical buyer fees in Ontario

The list below breaks down common line items buyers in Ontario, San Bernardino County, can expect. Amounts vary by lender, property, and service provider. Many items are negotiable.

Loan costs

• Loan origination, processing, underwriting. Often 0.25% to 1.0% of the loan amount, or flat fees from a few hundred to a few thousand dollars.
• Discount points. Optional prepaid interest to lower your rate. Often 0 to 3 points. One point equals 1% of the loan amount.
• Appraisal. Professional valuation required by lenders. Typically $400 to $900.
• Smaller loan-related items. Credit report, flood certification, and similar fees usually $25 to $200 each.

Title and escrow

• Lender’s title insurance. Protects the lender’s interest. Cost scales with price and state rate schedules. Typically paid by the buyer.
• Owner’s title insurance. Protects your ownership rights. Often comparable in cost to the lender’s policy. In many Southern California transactions the seller pays this policy, but it is negotiable and practices vary by county and deal.
• Escrow or closing fee. The escrow company manages funds and documents. Often $500 to $2,000 combined. In Inland Empire deals, this is commonly split 50-50, but check your purchase contract.

Government and recording

• Recording fees. County charges to record your deed and mortgage. Often $25 to $200, depending on documents recorded.
• Transfer taxes. California does not impose a general state transfer tax. Counties and cities may have their own. These are frequently paid by the seller where applicable, but allocations are negotiable and vary by city. Confirm specifics for San Bernardino County and the City of Ontario during escrow.

Prepaids and prorations

• Property tax prorations. Taxes are prorated based on your closing date. San Bernardino County’s general property tax is about 1% of assessed value, plus any special assessments. Your escrow will calculate the exact amount and timing for your property, including any Mello-Roos if applicable.
• Prepaid interest. Covers the days from your closing date until your first mortgage payment. It depends on your rate, loan amount, and closing day.
• Homeowner’s insurance and HOA. The first-year insurance premium is often collected at closing, commonly $700 to $2,000+, depending on coverage. HOAs may charge transfer or document fees, often $100 to $500+.

Escrow account setup

• Tax and insurance reserves. Many lenders require 2 to 6 months of property tax and insurance payments to start your escrow account. This is a one-time deposit at closing.

Inspections and repairs

• Home inspection, termite and others. Common inspections range $300 to $1,200 each, depending on type and property size. You typically pay these during the contingency period.

Mortgage insurance and program fees

• Conventional PMI. For down payments under 20%, you may pay monthly PMI or an upfront fee, depending on program options.
• FHA. The upfront Mortgage Insurance Premium is typically 1.75% of the loan amount, and it can often be rolled into the loan.
• VA. The funding fee varies by loan details and can often be financed.

Local customs and negotiation in San Bernardino County

Local practice matters. In many Southern California transactions, sellers often pay the owner’s title policy, while escrow fees are commonly split. Transfer taxes, where applicable, are frequently paid by the seller. That said, every deal is negotiable. In competitive markets, sellers may resist concessions. In a buyer-friendly market, you may secure credits that offset a meaningful portion of your closing costs. Your purchase contract and escrow instructions will confirm who pays what.

How to estimate your cash to close

You can get a solid ballpark before you apply for a loan. Gather a few details, then run the numbers using a mortgage calculator.

What to gather

• Purchase price and down payment
• Loan amount, interest rate, and term
• Annual property tax estimate, including special assessments if known
• Annual homeowner’s insurance estimate and HOA dues
• Estimated closing costs as a percentage of price, such as 2.5% to 4%
• Planned closing date to estimate prepaid interest days
• Any seller or lender credits, or assistance programs

Step-by-step estimate

1. Calculate your loan amount. Purchase price minus down payment.
2. Choose a closing cost percentage. Start with a low, typical, and high case, such as 2.0%, 3.0%, and 4.5%. Multiply by the purchase price.
3. Add known flat fees. Include appraisal, inspections, and smaller loan items.
4. Add prepaids. Estimate prepaid interest, first-year homeowner’s insurance, and property tax prorations based on timing.
5. Add initial escrow deposits. Include required months for tax and insurance reserves, if your lender requires an escrow account.
6. Subtract credits. Deduct any seller credits, lender credits, or grant assistance.
7. Result. The total equals your estimated cash to close.

Quick example

• Purchase price: $600,000
• Down payment: 10% = $60,000
• Closing costs estimate at 3%: $18,000
• Appraisal: $600
• Inspection: $450
• Homeowner’s insurance first year: $1,200
• Prepaid interest: about $1,200 depending on closing date

Estimated cash to close before credits or escrow deposits is roughly $81,450. Your lender, title, and escrow will provide actual figures for your specific property and loan.

Ways to lower your upfront costs

You have options to reduce what you bring to the closing table. Compare each choice carefully, since some reduce upfront cash but increase your monthly payment.

• Shop and compare lenders. Review Loan Estimates from at least three lenders. Compare rates, points, and total closing costs.
• Negotiate seller concessions. Ask for a credit toward your closing costs or specific fees, subject to loan program limits and market conditions.
• Use lender credits. Accept a slightly higher interest rate in exchange for a credit that reduces your cash due at closing.
• Roll program fees into the loan. Certain items, like FHA upfront MIP or the VA funding fee, can often be financed.
• Ask the seller to pay targeted items. For example, request that the seller cover the owner’s title policy or a portion of escrow fees if local custom allows.
• Skip optional add-ons. Decline lender extras you do not need.
• Explore assistance programs. State and local programs can offer funds for down payment or closing costs if you qualify.
• Time your closing. Closing later in the month can reduce prepaid interest.

What to double-check during escrow

• Who pays what. Confirm cost allocations in your purchase agreement and escrow instructions, especially title and escrow splits and any transfer tax.
• Property tax specifics. Verify the tax rate, special assessments, and any Mello-Roos for the property address.
• Final numbers. Your lender will provide a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing. Review both carefully.

If you want help reviewing estimates, comparing scenarios, or planning a negotiation strategy, reach out. You will get clear, local guidance tailored to Ontario and the Inland Empire.

Ready to plan your home purchase with confidence in Ontario? Connect with Jose Camejo for a clear, step-by-step plan and local negotiation strategies that can help you save.

FAQs

What are buyer closing costs in Ontario, CA?

• Most buyers should budget about 2% to 5% of the purchase price for closing costs, separate from the down payment.

Which closing fees do buyers usually pay in San Bernardino County?

• Buyers commonly pay loan-related fees, the appraisal, lender’s title insurance, portions of escrow, recording fees, prepaids, inspections, and initial escrow deposits.

Who pays owner’s title insurance in Ontario transactions?

• In many Southern California deals, the seller pays the owner’s policy, but it is negotiable and can vary by county and contract.

Are there city or county transfer taxes in Ontario?

• California has no general state transfer tax. Counties and cities may have their own. These are often paid by the seller, but you should confirm during escrow for your property.

How do I get an accurate cash-to-close number?

• Use a mortgage calculator for estimates, then rely on your lender’s Loan Estimate and the final Closing Disclosure from escrow for exact figures.