What closing costs actually cover
When you buy a home in Canada, closing costs are everything you pay on or before closing day beyond the purchase price itself. Most of these are non-negotiable line items dictated by provincial or federal rules — they aren't going away. Total cost typically ranges from 1.5% to 4% of the purchase price, depending heavily on your province and whether your mortgage is insured.
The down payment is the headline number. Closing costs are the part that catches first-time buyers — every June, broker offices fill with the same phone call: "I have my down payment but no money for closing." Budget separately.
The big four lines
1. Land Transfer Tax (or equivalent)
Almost always the largest closing-cost line. Each province handles it differently:
- Ontario — graduated 0.5% to 2.5% provincial LTT. Toronto adds Municipal LTT on top (roughly doubles the bill, with luxury surtax above $3M).
- British Columbia — Property Transfer Tax (PTT), 1% to 5% in graduated brackets. Non-resident buyers face an additional 20% in major regions.
- Quebec — Droit de Mutation ("welcome tax"), graduated 0.5%-1.5% provincial. Montreal stacks additional brackets up to 4%.
- Alberta + Saskatchewan — NO formal land transfer tax. Just nominal land titles registration fees ($100-$400).
- Manitoba — graduated 0.5% to 2% LTT.
- Nova Scotia — Deed Transfer Tax by municipality (0.5%-1.5%); Halifax is 1.5%. Non-residents face an additional 18.75%.
- New Brunswick — flat 1% Real Property Transfer Tax.
- Prince Edward Island — 1% Real Property Transfer Tax, with first-time buyer exemption up to $200k.
- Newfoundland & Labrador — deed registration fees only, no formal LTT.
First-time buyer rebates significantly reduce the bill in ON, BC, and PE. See our Ontario LTT rebate guide, BC PTT exemption guide, and run exact numbers in the LTT calculator.
2. Legal fees + disbursements
Your real-estate lawyer charges fees plus disbursements (out-of-pocket costs they incur on your behalf — registration fees, title search, document fees, courier).
Typical range:
- Standard purchase (no transfer issues): $1,200-$2,000
- Purchase with title issues or unusual ownership structure: $2,000-$2,500
- Purchase + simultaneous sale of current home: $2,200-$3,000
- New build (extra registrations + builder paperwork): $1,800-$2,500
Get a fixed-fee quote up front. The fee itself is usually 60-70% of the bill; disbursements make up the rest.
3. Title insurance
Almost every Canadian lender now requires title insurance. It protects you (and the lender) against fraud, hidden defects, encroachments, unpaid taxes from prior owners, and other title problems.
Typical cost: $200-$400 for a one-time premium covering the life of your ownership. The lender's portion is added by the lawyer; the homeowner's portion is optional but cheap and almost always advisable.
4. Property tax adjustment
The seller has typically pre-paid property tax for some portion of the year. At closing you reimburse the seller for the portion you'll occupy. Or, if the seller is behind on taxes, the lawyer holds back funds to bring them current.
Typical range: $0 to $2,000+ depending on when in the year you close. The closer to year-end, the smaller the adjustment.
PST on CMHC premium — three provinces
If you're putting less than 20% down (insured mortgage) and buying in:
- Ontario — 8% PST on the CMHC premium
- Quebec — 9.975% QST on the premium
- Saskatchewan — 6% PST on the premium
This part is paid IN CASH at closing — it isn't financed into the mortgage like the premium itself. On a $620,000 home with 10% down, the CMHC premium runs ~$15,000, so Ontario PST on it is ~$1,200. Budget separately.
The smaller line items
Home inspection — $400-$700
Optional but strongly recommended on resale homes. Choose a licensed inspector with a guarantee. Skip on brand-new builds (covered by Tarion warranty in Ontario, similar elsewhere).
Appraisal — $0-$500
Many lenders waive the appraisal fee on insured mortgages — they trust CMHC's automated valuation. If required, expect $300-$500 for a standard residential appraisal. Commercial and unique properties cost more.
Property survey — $1,000-$2,000 (sometimes)
Only required if the existing survey is missing, dated, or the property has potential boundary issues. Title insurance often substitutes for a current survey at much lower cost.
Estoppel certificate / status certificate — $100-$300
Condos require one. Reveals the condo corporation's financial health and any pending special assessments. The seller usually pays; sometimes the buyer.
Utility hookups / connections — $50-$200
Hydro, gas, internet activation, security system setup. Small but adds up.
Moving costs — $500-$5,000+
Highly variable. A small condo move within the same city can be $500; a 4-bedroom long-distance move with packing is $5,000+.
GST/HST on a new build — 5-15% of price
If you're buying brand-new from a builder, GST or HST applies. Many builders include it in the advertised price, but confirm. First-time buyers and primary residences may qualify for partial rebates — see our new home HST rebate calculator.
Worked examples — total closing costs by scenario
Scenario A: $500,000 condo, Alberta, 20% down
- Land titles registration: ~$200
- Legal fees: $1,500
- Title insurance: $250
- Property tax adjustment: $400
- Status certificate (condo): $100
- Inspection: $500
- Moving: $1,000
- Total: ~$3,950 (0.79%)
Scenario B: $700,000 home, Toronto, 10% down (insured)
- Provincial LTT: $10,475 (after $4,000 FTB rebate: $6,475)
- Toronto MLTT: $10,475 (after $4,475 FTB rebate: $6,000)
- Legal fees: $1,800
- Title insurance: $300
- Property tax adjustment: $700
- CMHC premium PST (8% on ~$17,400 premium): $1,392
- Inspection: $600
- Moving: $1,800
- Total: ~$19,065 (2.72%) — even WITH first-time buyer rebates
Scenario C: $1.4M home, Vancouver, 20% down
- BC Provincial PTT: $26,000
- Legal fees: $2,200
- Title insurance: $400
- Property tax adjustment: $1,200
- Inspection: $700
- Moving: $3,000
- Total: ~$33,500 (2.39%)
Non-residents in BC or Ontario add 20-25% on top of the regular PTT/LTT. The math gets very different fast.
Province quick reference
| Province | Typical % of price | Driver | |---|---|---| | Alberta | 0.5-1.0% | No LTT | | Saskatchewan | 0.6-1.0% | No LTT | | Newfoundland | 0.8-1.2% | Low deed registration | | Manitoba | 1.5-2.0% | Mid LTT | | New Brunswick | 1.5-2.0% | 1% flat RPT | | PEI | 1.5-2.0% | Lower with FTB exemption | | Quebec | 1.8-2.5% | Welcome tax + QST on CMHC | | Nova Scotia | 2.0-2.5% | Municipal-dependent DTT | | British Columbia | 2.5-3.5% | Graduated PTT | | Ontario (outside Toronto) | 2.0-3.0% | Provincial LTT + 8% PST on CMHC | | Toronto | 3.5-4.5% | Provincial LTT + Municipal LTT stacked |
How to budget responsibly
Use this rule of thumb when planning your purchase:
- Confirm the federal minimum down payment for your purchase price.
- Add 3% of purchase price as a closing-cost buffer (4% in Toronto, 2% in AB/SK).
- Add a 1-3 month carrying cost buffer for utilities/moving/furniture in the first months.
- Whatever cash is left becomes your emergency fund.
If steps 1-3 deplete your cash, you don't have enough to buy yet — even though you qualify for the mortgage.
Common questions
Are closing costs negotiable?
Some are. Legal fees, title insurance, and moving costs you can shop. Land transfer tax, registration fees, and CMHC premiums are fixed by statute.
Can I roll closing costs into the mortgage?
No, with one exception: refinances sometimes let you wrap legal costs into the new mortgage. Purchase closing costs come out of pocket at closing.
Does the seller pay any of these?
The seller pays their own legal fees, real-estate commission, and any outstanding property tax. The buyer pays everything listed above.
What if I don't have enough for closing?
Some buyers borrow short-term from family, use a small unsecured line of credit, or delay non-essential items (furniture, second moving day) until cash recovers. Better than stretching to buy without the cushion.
Bottom line
Budget 1.5-4% of purchase price for closing, weighted heavily on land transfer tax in ON / BC / Toronto. The lawyer + title insurance hit everyone; the inspection saves you from buying the wrong house. PST on CMHC catches insured borrowers in three provinces in cash at closing.
Run land transfer tax for your province, then layer in legal + title + property tax adjustment. Related reading: How much down payment do I need?, CMHC explained, Ontario LTT rebate.