What Are Closing Costs When Buying a House in Canada? Complete Breakdown
Updated
Closing costs are the expenses you pay on top of your down payment when you buy a home in Canada. Many first-time buyers are caught off guard by these costs, which can add $8,000 to $25,000+ depending on the province and purchase price. Here is every cost, itemized.
Largest variable — depends entirely on province and purchase price
Legal fees and disbursements
$1,500–$3,000
Lawyer/notary fees for closing
Title insurance
$300–$500
One-time premium, protects against title defects
Home inspection
$400–$700
Paid before closing (during conditional period)
Appraisal fee
$0–$500
Some lenders cover it, others charge the buyer
PST on CMHC insurance
$0–$2,500
Only in ON, QC, SK, MB — paid in cash at closing
Property tax adjustment
$0–$3,000
Reimburse seller for prepaid property taxes
Home insurance (first year)
$800–$2,000
Required by lender before closing
Moving costs
$500–$3,000
Self-move vs professional movers
Utility hookups/deposits
$100–$500
Transfer or setup fees
Total range
$3,500–$45,000+
Varies dramatically by province
Land transfer tax by province
Land transfer tax (or Property Transfer Tax in BC) is the single largest closing cost in most provinces. It is calculated on a sliding scale based on the purchase price.
Provincial land transfer tax on a $500,000 home
Province
Land Transfer Tax
First-Time Buyer Rebate
Net Cost (First-Time Buyer)
Ontario
$6,475
Up to $4,000
$2,475
Toronto (Ontario + municipal)
$6,475 + $5,725 = $12,200
$4,000 + $4,475 = $8,475
$3,725
British Columbia
$8,000
Full exemption up to $500K
$0
Quebec (welcome tax)
~$5,500
No rebate
$5,500
Manitoba
$5,250
No specific first-time LTT rebate
$5,250
New Brunswick
$5,000
No rebate
$5,000
Nova Scotia (Halifax)
$7,500 (deed transfer tax)
No rebate
$7,500
PEI
$5,000
No rebate
$5,000
Newfoundland
~$2,000 (registration fees)
No rebate
$2,000
Alberta
$0
N/A — no LTT
$0
Saskatchewan
$0
N/A — no LTT
$0
Land transfer tax formula examples
Ontario formula (sliding scale):
Purchase Price Portion
Rate
First $55,000
0.5%
$55,001–$250,000
1.0%
$250,001–$400,000
1.5%
$400,001–$2,000,000
2.0%
Above $2,000,000
2.5%
Ontario example on $600,000:
$55,000 × 0.5% = $275
$195,000 × 1.0% = $1,950
$150,000 × 1.5% = $2,250
$200,000 × 2.0% = $4,000
Total: $8,475 (minus up to $4,000 first-time rebate = $4,475)
Legal fees and disbursements
Your real estate lawyer (or notary in Quebec/BC) handles the legal transfer of property. Their fees include:
Legal Cost
Amount
What It Covers
Lawyer’s professional fee
$1,000–$2,000
Review of Agreement of Purchase and Sale, title search, mortgage registration, closing
Title search
$100–$300
Confirms seller owns the property and there are no liens
Registration fees
$100–$300
Registering the deed and mortgage with the land registry
Courier, photocopying, admin
$50–$150
Disbursements (out-of-pocket expenses)
Land transfer tax filing
Included or $50–$100
Submitting the LTT to the province
Total legal
$1,500–$3,000
How to choose a real estate lawyer:
Ask your mortgage broker or real estate agent for 2–3 referrals
Get a flat-fee quote (most real estate lawyers charge flat fees, not hourly)
Confirm the quote includes all disbursements — some quote a low base fee then add hundreds in extras
Title insurance
Detail
Info
Cost
$300–$500 (one-time, paid at closing)
What it covers
Title fraud, errors in public records, unknown liens, survey defects, encroachments
Who provides it
FCT, Stewart Title, Chicago Title
Is it required?
Most lenders require lender’s title insurance. Owner’s title insurance is optional but recommended.
Does it replace a survey?
Often yes — title insurance can replace the need for an updated survey ($1,000–$2,000 savings)
CMHC insurance premium (PST)
If your down payment is less than 20%, you pay a CMHC insurance premium. The premium itself is added to the mortgage, but PST on the premium is paid in cash at closing in four provinces:
Province
PST Rate on CMHC Premium
PST on $19,000 Premium (5% down, $500K home)
Ontario
8%
$1,520
Quebec
9%
$1,710
Manitoba
7%
$1,330
Saskatchewan
6%
$1,140
BC, Alberta, Atlantic
No PST
$0
This is a cost many buyers miss entirely. It must be paid in cash at closing and cannot be added to the mortgage.
Property tax and utility adjustments
When you buy a home, the seller may have already paid property taxes for the rest of the year. You reimburse them for the portion that covers your ownership period.
Scenario
What You Pay
Closing date: July 1. Seller prepaid full-year property tax ($5,000).
You reimburse seller $2,500 (July–December)
Closing date: March 1. Property tax not yet paid.
No adjustment — you will pay the full year
Utilities (water, hydro deposits)
Some municipalities require a deposit from new owners ($100–$300)
Home insurance
Your lender requires proof of home insurance before they will fund the mortgage. Arrange this 2+ weeks before closing.
Insurance Type
Annual Premium Range
What It Covers
Standard homeowner’s policy
$800–$2,000
Dwelling, contents, liability, additional living expenses
Condo insurance
$300–$600
Unit improvements, contents, liability (building covered by condo corp)
Tenant/renter insurance
$200–$400
Contents and liability only
Tip: Get quotes from 3+ insurers. Bundle with auto insurance for a 10–15% discount. Ask about claims-free discounts.
Full closing cost examples by city
Example 1: $500,000 home in Calgary (first-time buyer)
Cost
Amount
Land transfer tax
$0 (Alberta has none)
Legal fees + disbursements
$1,800
Title insurance
$400
Home inspection
$500
Home insurance (first year)
$1,200
Property tax adjustment
$1,500
Moving costs
$1,500
Total closing costs
$6,900
Example 2: $600,000 home in Toronto (first-time buyer)
Cost
Amount
Ontario land transfer tax
$8,475 minus $4,000 rebate = $4,475
Toronto municipal LTT
$7,725 minus $4,475 rebate = $3,250
Legal fees + disbursements
$2,200
Title insurance
$450
Home inspection
$550
PST on CMHC premium (if 5% down)
$1,900
Home insurance (first year)
$1,500
Property tax adjustment
$2,000
Moving costs
$2,000
Total closing costs
$18,325
Example 3: $450,000 home in Montreal (first-time buyer)
Cost
Amount
Quebec welcome tax
$4,500
Notary fees (Quebec uses notaries, not lawyers)
$1,500–$2,000
Title insurance
$400
Home inspection
$500
PST on CMHC premium (if less than 20% down)
$1,300
Home insurance (first year)
$1,000
Property tax adjustment
$1,500
Moving costs
$1,200
Total closing costs
$11,900
Example 4: $500,000 home in Vancouver (first-time buyer)
Cost
Amount
BC Property Transfer Tax
$0 (first-time buyer exemption, property under $500K)
Legal/notary fees
$1,800
Title insurance
$400
Home inspection
$600
Home insurance (first year)
$1,500
Property tax adjustment
$2,000
Moving costs
$1,500
Total closing costs
$7,800
Closing costs you might forget
Hidden Cost
Amount
When It Hits
Mortgage broker fee (B-lender or private only)
$0–$3,000+
At closing — A-lender brokers are paid by the lender
Status certificate (condos)
$100
Before closing
Estoppel certificate (condos, Alberta)
$100–$200
Before closing
Bridge financing (if buying before selling)
$1,000–$3,000
If you need short-term financing for a gap
Immediate repairs or appliances
$2,000–$10,000
First week of ownership
Utility connection fees
$100–$300
First month
Locks rekeyed
$200–$400
Day of possession
Window coverings (if not included)
$500–$3,000
First week
How to prepare for closing costs
Strategy
Details
Budget 3–5% of purchase price
This covers closing costs in most scenarios
In Toronto/Vancouver, budget 4–6%
Double LTT and higher legal fees
Keep closing costs separate from your down payment
Your lender will verify you have both
Ask your lawyer for a statement of adjustments beforehand
Shows exact amounts due before closing day
Prepare funds 3 days before closing
Certified cheque or wire transfer — personal cheques are not accepted