Closing costs catch many first-time buyers off guard. Beyond your down payment, you'll need an additional 1.5–4% of the purchase price for closing costs. This guide breaks down every expense you'll encounter so there are no surprises on closing day.
Closing Costs Overview
Here's a quick reference for budgeting:
Note: Ranges depend heavily on your province (land transfer tax) and property type.
Land Transfer Tax: The Big One
Land transfer tax (LTT) is typically your largest closing cost. Rates vary significantly by province:
Ontario Land Transfer Tax
| Home Value | Marginal Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000 – $250,000 | 1.0% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Toronto buyers: Add the Municipal Land Transfer Tax on top (similar structure, effectively doubling LTT).
Other Provinces
| Province | Rate | Notes |
|---|---|---|
| British Columbia | 1–3% | Progressive rates |
| Alberta | $0 | No land transfer tax |
| Manitoba | 0.5–2% | Progressive rates |
| Quebec | 0.5–1.5% | "Welcome tax" |
| Nova Scotia | 1.5% | Flat rate |
Use our Land Transfer Tax Calculator to get your exact amount.
First-Time Buyer Rebates
Calculate Your Closing Costs
Use our Closing Costs Calculator to get a detailed estimate for your specific situation.
Legal Fees and Disbursements
| Fee | Typical Amount |
|---|---|
| Legal fees | $1,000 – $2,000 |
| Title search | $100 – $200 |
| Registration fees | $150 – $300 |
| Courier/admin | $50 – $150 |
| Total legal costs | $1,500 – $2,500 |
Tip: Get quotes from multiple lawyers. Experience matters.
Title Insurance
- Typical cost: $300 – $500 (one-time)
- What it covers: Fraud, survey issues, title defects, unpaid liens
- Required? Lender coverage required; owner coverage recommended
Home Insurance
- Typical cost: $100 – $200/month
- Policy must be active by closing day
- Shop around for best rates
CMHC Insurance Premium
Note: The premium is typically added to your mortgage, not paid at closing.
Optional (But Recommended) Costs
| Service | Cost | Why It Matters |
|---|---|---|
| Home inspection | $400 – $600 | Identifies issues early |
| Property survey | $500 – $1,500 | Confirms boundaries |
| Septic/well inspection | $200 – $500 | Rural properties |
| Condo status certificate | $100 – $150 | Financial health of condo |
Moving and Setup Costs
- Professional movers: $500 – $2,000+
- Utility connections: $50 – $200
- Immediate repairs/upgrades: $500 – $5,000+
- New furniture/appliances: Variable
FAQ
Q: Can I roll closing costs into my mortgage?
A: Generally no, except CMHC insurance.
Q: When do I pay closing costs?
A: On closing day through your lawyer.
Q: What are Statement of Adjustments credits?
A: Seller refunds prepaid taxes or fees.
Q: How do I save on closing costs?
A: Rebates, shopping quotes, and province choice.
What's Next
Use our calculator and get pre-approved to understand your full buying budget.
Calculate Your Closing Costs
Know exactly what you'll need beyond your down payment. Our calculator gives you a detailed breakdown.
