Budget for all the expenses beyond your down payment
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.
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.
The total amount varies based on your home price and location, but here's what to expect:
| 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 |
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 | 2.8% - 4% of mortgage | 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:
Ensuring the property has clear title and no liens
Reviewing mortgage documents and terms
Registering the property in your name
Preparing and reviewing all closing documents
Managing the transfer of funds on closing day
These are out-of-pocket expenses your lawyer pays on your behalf:
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.
This is typically the largest closing cost. The amount varies significantly by province:
| Province/Territory | Tax Rate | First-Time Buyer Rebate |
|---|---|---|
| Ontario | 0.5% - 2% | Up to $4,000 |
| Toronto (Municipal) | Additional 0.5% - 2% | Up to $4,475 |
| British Columbia | 1% - 3% | Full exemption up to $500k |
| Quebec (Welcome Tax) | 0.5% - 1.5% | Varies by municipality |
| Manitoba | Flat 0.5% | None |
| Nova Scotia | 1.5% on value over $250k | None |
| PEI | 1% | Up to $3,750 |
| Alberta | None | N/A |
| Saskatchewan | None | N/A |
If you're buying a newly constructed home, you'll pay GST (5%) or HST (varies by province):
If your home is under $450,000, you may qualify for a partial GST/HST rebate. The rebate decreases between $350,000 and $450,000, and is eliminated above $450,000.
A professional home inspection is crucial for identifying potential issues before you buy:
Foundation, walls, roof, and framing
Wiring, panels, outlets, and safety
Pipes, water heater, drainage
Heating, ventilation, air conditioning
Attic, walls, moisture issues
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 protects you from:
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.
Don't forget about the costs associated with actually moving into your new home:
| 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 |
Budget for immediate needs:
Keep an additional $2,000 - $5,000 as an emergency fund for unexpected issues that arise in the first few months of homeownership.
First-time buyers can withdraw up to $35,000 from their RRSP to help with down payment or closing costs:
Use our calculators to estimate your complete home buying budget including down payment, closing costs, and monthly payments.
Affordability CalculatorHere'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.
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.
When saving for your home purchase, save this amount:
This ensures you're fully prepared for all aspects of homeownership from day one.
Last Updated: April 2026