How much are closing costs in Canada?

Closing costs in Canada typically range from 1.5% to 4% of the purchase price, or $8,000 to $40,000 on a $500,000 home depending on the province. The largest cost is land transfer tax (which varies significantly by province), followed by legal fees ($1,500–$2,500), title insurance ($300–$500), and home inspection ($400–$600).

Which province has the highest closing costs?

Toronto has the highest closing costs due to two layers of land transfer tax: the Ontario provincial tax plus the Toronto Municipal Land Transfer Tax. On a $700,000 home in Toronto, land transfer tax alone is $18,475. Quebec and Nova Scotia also have higher-than-average closing costs. Alberta has no land transfer tax, making it among the cheapest.

Are closing costs tax-deductible?

For your principal residence, most closing costs are not tax-deductible. However, for investment or rental properties, legal fees, appraisal fees, and certain other closing costs can be added to your adjusted cost base (reducing capital gains tax when you sell) or deducted as expenses.

Closing Costs in Canada by Province 2026: Complete Guide

Closing Cost Summary by Province

Province	Land Transfer Tax	Legal Fees	Title Insurance	Home Inspection	Other Fees	Total on $500K
Ontario	$6,475	$1,500–$2,500	$300–$500	$400–$600	$500–$1,000	$9,175–$11,075
Ontario (Toronto)	$12,950	$1,500–$2,500	$300–$500	$400–$600	$500–$1,000	$15,650–$17,550
British Columbia	$8,000	$1,200–$2,000	$300–$500	$400–$600	$200–$500	$10,100–$11,600
Alberta	$0	$1,000–$1,800	$300–$500	$400–$600	$300–$600	$2,000–$3,500
Quebec	$5,000	$1,500–$2,500	Not common	$400–$600	$500–$700	$7,400–$8,800
Manitoba	$5,150	$1,000–$1,800	$300–$500	$400–$600	$200–$400	$7,050–$8,450
Saskatchewan	$0	$1,000–$1,800	$300–$500	$400–$600	$200–$400	$1,900–$3,300
Nova Scotia	$7,500	$1,200–$2,000	$300–$500	$400–$600	$200–$400	$9,600–$11,000
New Brunswick	$5,000	$1,000–$1,800	$300–$500	$400–$600	$200–$400	$6,900–$8,300
PEI	$5,000	$1,000–$1,800	$300–$500	$400–$600	$200–$400	$6,900–$8,300

Land Transfer Tax by Province

Ontario Land Transfer Tax

Property Value Portion	Tax Rate	Cumulative on $500K
First $55,000	0.5%	$275
$55,001–$250,000	1.0%	$2,225
$250,001–$400,000	1.5%	$4,475
$400,001–$2,000,000	2.0%	$6,475
Over $2,000,000	2.5%	—

Toronto Municipal Land Transfer Tax (additional):

Property Value Portion	Tax Rate	Cumulative on $500K
First $55,000	0.5%	$275
$55,001–$250,000	1.0%	$2,225
$250,001–$400,000	1.5%	$4,475
$400,001–$2,000,000	2.0%	$6,475
Over $2,000,000	2.5%	—

Total land transfer tax on $500K in Toronto: $12,950

Ontario First-Time Home Buyer Rebate

Program	Amount	Eligibility
Provincial LTT rebate	Up to $4,000	First-time buyer, must live in home
Toronto municipal LTT rebate	Up to $4,475	First-time buyer, buying in Toronto
Maximum combined rebate	Up to $8,475	—

British Columbia Property Transfer Tax

Property Value Portion	Tax Rate	Cumulative on $500K
First $200,000	1.0%	$2,000
$200,001–$2,000,000	2.0%	$8,000
$2,000,001–$3,000,000	3.0%	—
Over $3,000,000	5.0%	—

BC First-Time Buyer Exemption: Full exemption on homes up to $500,000. Partial exemption on $500,001–$525,000.

Quebec Welcome Tax (Droits de Mutation)

Property Value Portion	Tax Rate	Cumulative on $500K
First $58,900	0.5%	$295
$58,901–$294,600	1.0%	$2,652
$294,601–$500,000	1.5%	$5,733
Over $500,000	2.0%	—

Montreal adds 0.5% for properties over $750,000, and 1.0% over $1M.

Alberta — No Land Transfer Tax

Alberta does not charge land transfer tax. The only transfer cost is the land title registration fee ($50 + $2 per $5,000 of property value) — approximately $250 on a $500K property.

Manitoba Land Transfer Tax

Property Value Portion	Tax Rate	Cumulative on $500K
First $30,000	0%	$0
$30,001–$90,000	0.5%	$300
$90,001–$150,000	1.0%	$900
$150,001–$200,000	1.5%	$1,650
Over $200,000	2.0%	$7,650

Nova Scotia Deed Transfer Tax

Rate	Details
1.5% of purchase price	Flat rate across the province
On $500,000	$7,500
No first-time buyer exemption	Full amount applies

Complete Closing Cost Breakdown

Common Closing Costs (All Provinces)

Cost	Amount	Required?
Legal fees	$1,000–$2,500	✅ Yes
Title insurance	$300–$500	Recommended (required by most lenders)
Home inspection	$400–$600	Highly recommended
Appraisal fee	$300–$500	Usually paid by lender
Land survey/title search	$200–$500	Sometimes needed
Property tax adjustment	Varies	Prorated from seller at closing
Utility adjustments	$100–$300	Prorated at closing
Mortgage default insurance (CMHC)	2.8–4.0% of mortgage	If less than 20% down (added to mortgage)
Moving costs	$500–$2,000	Not a closing cost, but budget for it

Optional/Situational Costs

Cost	Amount	When Required
PST on CMHC insurance (Ontario)	8% of premium	Ontario only, on CMHC premium
Estoppel certificate/status cert	$100–$300	Condo purchases
Interest adjustment	Varies	Between closing and first payment
Property tax holdback	1–3 months	New construction sometimes
Builder tarion warranty (ON)	$600–$1,000	New construction in Ontario
GST/HST on new home	5–13%	New construction only
New home rebate	Up to $24,000	New construction (GST/HST rebate)

Total Closing Costs by Purchase Price

Ontario (Outside Toronto)

Purchase Price	Land Transfer Tax	Legal + Title	Other Costs	Total	% of Price
$300,000	$2,975	$2,000	$1,000	$5,975	2.0%
$500,000	$6,475	$2,000	$1,000	$9,475	1.9%
$700,000	$10,475	$2,000	$1,000	$13,475	1.9%
$1,000,000	$16,475	$2,500	$1,000	$19,975	2.0%

Toronto (Double Land Transfer Tax)

Purchase Price	Provincial + Municipal LTT	Legal + Title	Other Costs	Total	% of Price
$500,000	$12,950	$2,000	$1,000	$15,950	3.2%
$700,000	$18,475	$2,000	$1,000	$21,475	3.1%
$1,000,000	$28,975	$2,500	$1,000	$32,475	3.2%

Alberta

Purchase Price	Land Transfer Tax	Legal + Title	Other Costs	Total	% of Price
$300,000	$0	$1,500	$1,000	$2,500	0.8%
$500,000	$0	$1,500	$1,000	$2,500	0.5%
$700,000	$0	$1,800	$1,000	$2,800	0.4%
$1,000,000	$0	$2,000	$1,000	$3,000	0.3%

British Columbia

Purchase Price	Property Transfer Tax	Legal + Title	Other Costs	Total	% of Price
$500,000	$8,000	$1,500	$1,000	$10,500	2.1%
$700,000	$12,000	$1,800	$1,000	$14,800	2.1%
$1,000,000	$18,000	$2,000	$1,000	$21,000	2.1%

First-Time Home Buyer Savings

Province	LTT Rebate/Exemption	Maximum Savings
Ontario (provincial)	Rebate up to $4,000	$4,000
Toronto (municipal)	Rebate up to $4,475	$4,475
British Columbia	Full exemption up to $500K	$8,000
PEI	Full exemption up to $200K	$2,000
Manitoba	None	$0
Quebec	None	$0
Alberta	No LTT exists	N/A
Saskatchewan	No LTT exists	N/A