How much should I budget for closing costs in Canada?

A common planning figure is 1.5% to 4% of the purchase price, and the range is that wide mostly because land transfer tax varies enormously by province and city. Alberta and Saskatchewan land at the bottom; a Toronto purchase paying both provincial and municipal tax lands at the top.

What is included in closing costs?

Land transfer tax, legal fees and disbursements, title insurance, the property inspection, an appraisal if the lender orders one, and adjustments reimbursing the seller for property tax or utilities they prepaid. New builds add development levies and possible GST or HST.

Can closing costs be added to the mortgage?

Generally no. Lenders want them paid in cash and will ask you to prove you have them — many require you to show one-and-a-half percent of the purchase price in reserve on top of your down payment. Some refinances and new-build programs are exceptions.

What are adjustments on a statement of adjustments?

They are pro-rated reimbursements. If the seller has prepaid property tax or condo fees past the closing date, you repay them the unused portion. They can add or subtract a few thousand dollars and are calculated by the lawyers shortly before closing.

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Closing costs

Closing costs estimator

All-in costs to close on your purchase, beyond the down payment itself. Province-aware (no LTT in AB/SK, double-LTT in Toronto). For exact LTT see the dedicated calculator.

Your scenario

Purchase price$720,000

$100,000$5,000,000

Province

Legal fees + disbursements$1,800

$800$4,000

Home inspection$450

$0$1,500

Title insurance$300

$0$1,000

Moving costs$1,200

$0$10,000

First-time buyer rebateApplies LTT rebate where the province offers one.

Result

Total closing costs

$15,558

% of purchase

2.16%

Land transfer tax

$10,728

Property tax adjust

$1,080

Use the dedicated /calculators/land-transfer-tax for exact per-bracket math. This estimator uses a flat-rate approximation.

Plan for 1.5-4% of price

Closing costs vary dramatically by province because the biggest line — Land Transfer Tax — varies dramatically. In Alberta and Saskatchewan plan for roughly 1.5% of price. In Ontario and BC plan for 2.5-3.5%. In Toronto, where municipal LTT stacks on top of provincial, plan for 3.5-4.5%.

The line items, ranked by typical size

Land transfer tax — biggest in 8 of 10 provinces. None in AB/SK.
Mortgage payoff or balance transfer — for refinancers, not buyers
Legal fees + disbursements ($1,200-$2,500)
Property tax adjustment ($0-$2,000+ depending on time of year)
PST on CMHC premium ($800-$2,000 in ON/QC/SK if insured)
Title insurance ($200-$400)
Home inspection ($400-$700)
Moving costs ($500-$5,000)
Status / estoppel certificate (condos only, $100-$300)

First-time buyer rebates that move the number

If you're a first-time buyer, several provinces meaningfully reduce LTT. Ontario rebates up to $4,000 provincial + $4,475 Toronto MLTT. BC fully exempts purchases up to $500k. PEI fully exempts up to $200k. Run the exact bracket math in our LTT calculator.

Common gotchas

PST on CMHC premium catches insured buyers in Ontario, Quebec, and Saskatchewan — paid in CASH at closing, NOT financed into the mortgage like the premium itself
Property tax adjustment — if you close in November, you may owe the seller for tax already paid through year-end
Foreign buyer tax — non-residents face an additional 20-25% in Ontario and parts of BC (see foreign buyer tax calculator)
HST on new builds — if buying brand new from a builder, the price advertised may or may not include HST

Related calculators

Questions about this calculator

How much should I budget for closing costs in Canada?: A common planning figure is 1.5% to 4% of the purchase price, and the range is that wide mostly because land transfer tax varies enormously by province and city. Alberta and Saskatchewan land at the bottom; a Toronto purchase paying both provincial and municipal tax lands at the top.
What is included in closing costs?: Land transfer tax, legal fees and disbursements, title insurance, the property inspection, an appraisal if the lender orders one, and adjustments reimbursing the seller for property tax or utilities they prepaid. New builds add development levies and possible GST or HST.
Can closing costs be added to the mortgage?: Generally no. Lenders want them paid in cash and will ask you to prove you have them — many require you to show one-and-a-half percent of the purchase price in reserve on top of your down payment. Some refinances and new-build programs are exceptions.
What are adjustments on a statement of adjustments?: They are pro-rated reimbursements. If the seller has prepaid property tax or condo fees past the closing date, you repay them the unused portion. They can add or subtract a few thousand dollars and are calculated by the lawyers shortly before closing.