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: Total Cash Needed (5% Down) $400,000 $6,000 - $16,000 $26,000 - $36,000 $600,000 $9,000 - $24,000 $44,000 - $59,000 $800,000 $12,000 - $32,000 $67,000 - $87,000 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 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 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 If you're a first-time buyer, you may qualify for significant rebates: Conditions Ontario $4,000 Home value under $368,000 for full rebate Toronto $4,475 Additional municipal rebate BC Full exemption Home under $500,000 PEI Full exemption All first-time buyers Calculate Your Closing Costs Don't leave anything to chance. Use our Closing Costs Calculator to get a detailed estimate for your specific situation. Legal Fees and Disbursements You'll need a real estate lawyer to complete your purchase: 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. Prices vary, but cheaper isn't always better—experience with real estate transactions matters. Title Insurance Title insurance protects against issues with property ownership: Typical cost: $300 - $500 (one-time) What it covers: Fraud, survey issues, title defects, unpaid liens Required? Most lenders require lender's coverage; owner's coverage is optional but recommended Learn more in our title insurance guide. Home Insurance Lenders require proof of home insurance before closing: Typical cost: $100 - $200/month When needed: Policy must be in place by closing day Tip: Shop around—rates vary significantly between providers CMHC Insurance Premium If your down payment is less than 20%, mortgage default insurance is required: On 0K Mortgage 5% 4.00% $19,000 10% 3.10% $13,950 15% 2.80% $11,900 Note: The premium is typically added to your mortgage, not paid at closing—but it increases your total mortgage amount. Optional (But Recommended) Costs Why It Matters Home inspection $400 - $600 Identifies issues before you commit Property survey $500 - $1,500 Confirms boundaries (may be required) Septic/well inspection $200 - $500 Rural properties Condo status certificate $100 - $150 Reveals condo corporation health Moving and Setup Costs Don't forget the costs of actually moving in: Professional movers: $500 - $2,000+ Utility connections: $50 - $200 Immediate repairs/upgrades: $500 - $5,000+ New furniture/appliances: Variable What's Next Don't let closing costs derail your home purchase. Use our calculator to know exactly what you'll need, and get pre-approved to understand your complete home-buying budget. Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions Q: Can I roll closing costs into my mortgage? A: Generally no—most closing costs must be paid from your own funds. The exception is CMHC insurance, which is typically added to your mortgage. Q: When do I pay closing costs? A: Most are due on closing day, paid through your lawyer. Your lawyer will provide a detailed Statement of Adjustments before closing. Q: What are Statement of Adjustments credits? A: The seller may owe you credits for prepaid property taxes, utility bills, or condo fees—these reduce your cash needed at closing. Q: How do I save on closing costs? A: First-time buyer rebates (LTT), shopping around for legal fees and insurance, and buying in provinces with no LTT (like Alberta) can all help.
