Complete Guide to Closing Costs in Canada

Budget for all the expenses beyond your down payment

Table of Contents

1. What Are Closing Costs?

Closing costs are the fees and expenses you pay when finalizing your home purchase, separate from your down payment and mortgage. These costs are typically due on or before your closing date.

Key Points About Closing Costs

  • Usually range from 1.5% to 4% of the purchase price
  • Cannot typically be added to your mortgage (must be paid upfront)
  • Vary by province and property type
  • Often overlooked by first-time buyers
  • Required in addition to your down payment

Common Mistake

Many first-time buyers save exactly 5% or 20% for their down payment but forget about closing costs. This can delay your purchase or force you to scramble for additional funds at the last minute.

2. How Much Should I Budget?

The total amount varies based on your home price and location, but here's what to expect:

1.5% - 2% Typical for Resale Homes
2% - 4% Typical for New Construction
3% - 4% If Buying with Less Than 20% Down

Quick Estimate Examples

Home Price Low Range (1.5%) Average (2.5%) High Range (4%)
$300,000 $4,500 $7,500 $12,000
$500,000 $7,500 $12,500 $20,000
$750,000 $11,250 $18,750 $30,000
$1,000,000 $15,000 $25,000 $40,000

3. Complete Cost Breakdown

Here's a detailed breakdown of all potential closing costs you may encounter:

Cost Item Typical Range Who Pays Required?
Legal Fees $1,000 - $2,000 Buyer Yes
Disbursements $300 - $700 Buyer Yes
Land Transfer Tax 0.5% - 4% of price Buyer Yes (varies by province)
Home Inspection $400 - $600 Buyer Highly recommended
Home Appraisal $300 - $500 Buyer If required by lender
Title Insurance $250 - $400 Buyer Highly recommended
Property Survey $1,000 - $2,000 Buyer Sometimes (may use existing)
CMHC Insurance Premium Premium varies by loan-to-value, product and amortization Buyer If down payment less than 20%
Property Tax Adjustments Varies Buyer Yes
Utility Adjustments Varies Buyer Yes
Status Certificate (Condo) $100 - $200 Buyer Yes for condos
GST/HST (New Construction) 5% - 15% (may get rebate) Buyer Yes for new builds

You'll need a real estate lawyer to handle the legal aspects of your home purchase. Here's what their fees cover:

Legal Fees ($1,000 - $2,000)

✓
Title Search and Review

Ensuring the property has clear title and no liens

✓
Mortgage Review

Reviewing mortgage documents and terms

✓
Transfer of Title

Registering the property in your name

✓
Closing Documentation

Preparing and reviewing all closing documents

✓
Fund Transfers

Managing the transfer of funds on closing day

Disbursements ($300 - $700)

These are out-of-pocket expenses your lawyer pays on your behalf:

  • Title Search Fee: $75 - $200
  • Title Registration: $50 - $100
  • Execution Searches: $50 - $75
  • Courier Fees: $30 - $75
  • Document Copies: $20 - $50
  • Administrative Fees: $75 - $150

Money-Saving Tip

Shop around for lawyers. Fees can vary significantly between firms. Get quotes from at least 3 lawyers and ask for a detailed breakdown of fees and disbursements.

5. Government Fees & Taxes

Land Transfer Tax and Registration Charges

Property-transfer costs differ substantially by province and, in some places, by municipality. Ontario, British Columbia, Quebec, Manitoba, New Brunswick and PEI use transfer-tax structures; Toronto adds a municipal land-transfer tax; Nova Scotia municipal deed-transfer-tax rates vary; and Alberta, Saskatchewan and Newfoundland and Labrador use registration-fee structures rather than a conventional provincial land-transfer tax.

First-time-buyer rebates, exemptions or refundable credits also differ by jurisdiction and eligibility. Because thresholds change, use the current calculator rather than a static rate table.

Use Our Calculator: Estimate current provincial and applicable municipal costs with our Land Transfer Tax Calculator.

GST/HST on New or Substantially Renovated Homes

GST/HST treatment depends on the property, province, builder agreement and whether tax is included in the purchase price. The CRA administers the existing GST/HST new housing rebate for eligible purchases or construction, and a separate first-time home buyers' GST/HST rebate is now available for eligible first-time buyers of qualifying new or substantially renovated homes.

2026 first-time-buyer federal rebate

For qualifying first-time buyers, the federal first-time home buyers' GST/HST rebate can recover up to 100% of the GST (or federal portion of HST) on a qualifying new home valued at $1 million or less, up to $50,000. The maximum rebate phases out between $1 million and $1.5 million and is unavailable at $1.5 million or more. Eligibility and agreement/construction dates matter.

CRA — First-time home buyers' GST/HST rebate

6. Inspections & Insurance

Home Inspection ($400 - $600)

A professional home inspection is crucial for identifying potential issues before you buy:

1
Structural Issues

Foundation, walls, roof, and framing

2
Electrical Systems

Wiring, panels, outlets, and safety

3
Plumbing Systems

Pipes, water heater, drainage

4
HVAC Systems

Heating, ventilation, air conditioning

5
Insulation & Ventilation

Attic, walls, moisture issues

Don't Skip This: While not legally required, a home inspection can save you tens of thousands by identifying problems before you commit to the purchase. Consider it essential, not optional.

Additional Inspections (If Needed)

  • Radon Testing: $150 - $300
  • Mold Inspection: $300 - $600
  • Pest Inspection: $100 - $300
  • Septic Inspection: $300 - $500
  • Well Water Testing: $200 - $400
  • Asbestos Testing: $400 - $800

Home Appraisal ($300 - $500)

Your lender may require an appraisal to confirm the property value supports the mortgage amount. This protects both you and the lender from overpaying.

Title Insurance ($250 - $400)

Title insurance protects you from:

  • Title fraud and forgery
  • Unknown liens or encumbrances
  • Survey errors or boundary disputes
  • Zoning bylaw violations
  • Work orders from previous owners

One-Time Premium

Title insurance is a one-time payment that protects you for as long as you own the property. Most lawyers strongly recommend it as it's relatively inexpensive for the coverage provided.

7. Moving & Setup Costs

Don't forget about the costs associated with actually moving into your new home:

Immediate Moving Costs

Item Typical Cost Notes
Professional Movers $500 - $2,000+ Depends on distance and volume
Truck Rental (DIY) $100 - $400 Plus fuel and insurance
Packing Supplies $100 - $300 Boxes, tape, bubble wrap
Storage (if needed) $100 - $300/month Short-term storage
Cleaning Services $200 - $500 Deep clean before moving in

Utility Setup & Deposits

  • Hydro/Electricity: $0 - $200 deposit
  • Natural Gas: $0 - $150 deposit
  • Water/Sewer: Usually included in property tax or condo fees
  • Internet/Cable: $100 - $300 (installation + first month)
  • Home Insurance: First year premium due at closing

Immediate Repairs & Improvements

Budget for immediate needs:

  • Lock Changes: $100 - $300 (important for security)
  • Paint/Touch-ups: $300 - $1,500
  • Minor Repairs: $500 - $2,000
  • Appliances (if not included): $2,000 - $8,000
  • Window Coverings: $500 - $2,000
  • Yard/Landscaping: $500 - $3,000

Emergency Fund

Keep an additional $2,000 - $5,000 as an emergency fund for unexpected issues that arise in the first few months of homeownership.

8. How to Save on Closing Costs

Shop Around for Services

  • Get quotes from 3+ lawyers
  • Compare home inspector rates
  • Negotiate with moving companies
  • Bundle insurance policies for discounts

Time Your Purchase

  • Close at month-end to minimize prepaid interest
  • Buy after property tax due date to avoid adjustments
  • Move during off-peak season (September - May)
  • Negotiate closing date flexibility

Use First-Time Buyer Benefits

  • Land transfer tax rebates
  • Home Buyers' Plan (RRSP withdrawal)
  • First Home Savings Account (FHSA)
  • GST/HST new housing rebate

Negotiate with Seller

  • Ask seller to cover some closing costs
  • Request existing survey instead of new one
  • Include appliances in purchase price
  • Negotiate repair credits

RRSP Home Buyers' Plan

Eligible participants can withdraw up to $60,000 from RRSPs under the Home Buyers' Plan to help fund a qualifying home purchase:

  • Withdrawal is tax-free if you're a first-time buyer
  • Must repay the amount over 15 years
  • Two eligible buyers may each be able to withdraw up to $60,000
  • Recent RRSP contributions can have special deductibility rules when withdrawn within 90 days; verify the CRA HBP rules for your contribution and withdrawal dates

Calculate Your Total Costs

Use our calculators to estimate your complete home buying budget including down payment, closing costs, and monthly payments.

Affordability Calculator

Complete Closing Costs Checklist

Essential Costs (Cannot Avoid)

  • Legal fees and disbursements: $1,300 - $2,700
  • Land-transfer tax or title-registration charges: vary by province/municipality and property value
  • Property tax adjustment: Varies
  • Utility adjustments: Varies
  • Home insurance first year: $800 - $2,000
  • Mortgage default insurance (for eligible high-ratio mortgages): premium varies by loan-to-value, product and amortization

Highly Recommended Costs

  • Home inspection: $400 - $600
  • Title insurance: $250 - $400
  • Appraisal (if required): $300 - $500

Optional But Consider

  • Additional inspections (radon, mold, etc.): $100 - $800 each
  • New survey: $1,000 - $2,000
  • Status certificate (condos): $100 - $200
  • Professional movers: $500 - $2,000+

Provincial Closing Cost Summary

Here's what you can expect by province for a $500,000 home purchase:

Province Land Transfer Tax Other Fees Estimated Total
Ontario $6,475 $3,000 - $5,000 $9,475 - $11,475
Toronto $12,950 (double tax) $3,000 - $5,000 $15,950 - $17,950
British Columbia $8,000 $3,000 - $5,000 $11,000 - $13,000
Alberta $0 $3,000 - $5,000 $3,000 - $5,000
Quebec $3,225 $3,000 - $5,000 $6,225 - $8,225
Manitoba $2,500 $3,000 - $5,000 $5,500 - $7,500
Nova Scotia $3,750 $3,000 - $5,000 $6,750 - $8,750

Note: These are estimates for a $500,000 home with 20% down payment. Actual costs will vary based on your specific situation and may include additional province-specific fees.

Final Thoughts

Closing costs are a significant but often overlooked part of buying a home. By understanding and budgeting for these expenses early in your home-buying journey, you'll avoid last-minute financial stress and be better prepared for a smooth closing.

Key Takeaways:
  • Budget 1.5% - 4% of purchase price for closing costs
  • Closing costs cannot usually be added to your mortgage
  • Land transfer tax is often the largest single closing cost
  • First-time buyers may qualify for various rebates and incentives
  • Shop around for legal services and other professional fees
  • Don't skip the home inspection to save money
  • Keep an emergency fund for unexpected costs after moving in
  • Provincial costs vary significantly - know your local requirements

Smart Budgeting Strategy

When saving for your home purchase, save this amount:

  • Down Payment: 5% - 20% of purchase price
  • Closing Costs: 2.5% - 4% of purchase price
  • Emergency Fund: $5,000 - $10,000
  • Moving & Setup: $2,000 - $5,000

This ensures you're fully prepared for all aspects of homeownership from day one.

Last reviewed: September 2026

Disclaimer: This guide provides general information about closing costs for educational purposes only. Actual costs vary significantly by province, municipality, property type, and individual circumstances. Some fees may have changed since publication. Always get detailed quotes from your lawyer, real estate agent, and other service providers. This information does not constitute financial or legal advice. Consult with licensed professionals for personalized guidance.

Frequently Asked Questions

How much are closing costs in Canada? +
Closing costs in Canada typically range from 1.5% to 4% of the purchase price, in addition to your down payment. For a $500,000 home, expect to budget between $7,500 and $20,000. The exact amount depends on your province, whether you are buying new construction or resale, and your down payment size. First-time buyers with less than 20% down tend to have higher closing costs due to CMHC insurance.
What closing costs are mandatory when buying a home in Canada? +
Closing costs vary by province, municipality and transaction. Common items include legal or notary fees and disbursements, land-transfer tax or land-title registration charges where applicable, property-tax or utility adjustments, title insurance and home insurance. If mortgage default insurance applies, the premium can generally be added to the mortgage, while provincial sales tax on the premium in applicable provinces cannot be added to the loan.
Can closing costs be added to my mortgage in Canada? +
Generally no — most closing costs must be paid in cash on or before your closing date and cannot be rolled into your mortgage. The only exception is CMHC mortgage default insurance, which can be added to your mortgage principal. This is why many first-time buyers are caught off guard: they save the minimum 5% down payment but forget they also need cash for closing costs on top of that.
What is land transfer tax and how much is it? +
Property-transfer costs vary widely across Canada. Some provinces charge a graduated land-transfer or property-transfer tax; others use title-registration fees; Nova Scotia municipal deed-transfer-tax rates vary by municipality; and Toronto has a separate municipal land-transfer tax in addition to Ontario tax. Use the current provincial/municipal rules or our land-transfer-tax calculator for an estimate.
Do I need a home inspection and how much does it cost? +
A home inspection is not legally required in Canada but is strongly recommended. It typically costs $400–$600 and covers structural elements, electrical, plumbing, HVAC, insulation, and ventilation. Skipping a home inspection to save money is risky — undiscovered defects can cost tens of thousands to repair after closing. In competitive markets, some buyers waive the inspection condition to strengthen their offer, but this carries significant risk.
What is title insurance and do I need it in Canada? +
Title insurance protects you and your lender from losses due to title defects, fraud, survey errors, zoning violations, and unknown liens. In Canada, it costs $250–$400 as a one-time premium that covers you for as long as you own the property. While not legally mandatory, most real estate lawyers strongly recommend it as the coverage far exceeds the cost.