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.

Closing costs

Closing costs estimator

The cash you need at closing on top of the down payment: land transfer tax at your province's real rates (and Toronto's second tax), legal fees, title insurance, inspection, moving and the property tax adjustment.

Your scenario

Purchase price$720,000

$100,000$5,000,000

ProvinceInside the City of TorontoAdds Toronto's municipal land transfer tax.

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

$15,705

% of purchase

2.18%

Land transfer tax

$10,875

Property tax adjust

$1,080

Transfer tax uses the same brackets and first-time buyer rules as the land transfer tax calculator. Nova Scotia assumes the 1.5% Halifax rate. The mortgage registration fee is not included.

Rules checked: September 2026. Sources: Ontario first-time refund · BC first-time exemption · Alberta land titles fees · Saskatchewan title fees

Why the total swings so much by province

The biggest line is usually the land transfer tax, and it ranges from nothing to several percent of the price. On the default $720,000 purchase the transfer tax alone is about $11,000 in Ontario, about $22,000 inside Toronto (provincial plus municipal), $12,400 in BC, and only a land titles fee in Alberta (about $770) or Saskatchewan (0.4% of value, about $2,900). Everything else — legal, title insurance, inspection, moving, adjustments — adds a few thousand dollars wherever you buy. Many lenders also want to see roughly 1.5% of the price set aside for closing costs on top of the down payment.

The line items, ranked by typical size

Land transfer tax — usually the biggest line. None in AB/SK, which charge land titles fees instead
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 are a first-time buyer, several provinces cut the transfer tax. Ontario refunds up to $4,000, and Toronto up to $4,475 of its municipal tax. BC exempts the tax on the first $500,000 (up to $8,000) for homes worth up to $835,000, phasing out by $860,000. PEI fully exempts qualifying first-time buyers with no price limit. Quebec pays back up to $5,875 of the duties through a refundable tax credit after closing — not included in the total above. Run the exact bracket math in the land transfer tax 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 — foreign nationals pay Ontario's 25% Non-Resident Speculation Tax, or BC's 20% additional property transfer tax in specified areas (see the 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

Mortgage agent or broker? Calculators like this one embed on the website you already have, and Mortgage360 campaign landing pages capture the enquiries they start straight into your CRM.

Embed calculators on your site · Mortgage CRM for brokers

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.