This home closing costs calculator helps you estimate the additional costs you will have to pay when purchasing a home in Canada. Since these costs can be quite expensive and typically need to be paid upfront it is important to plan for them when considering your home purchase.
What closing costs should be considered when purchasing a home?
Some of the most common closing costs which should be planned for are land transfer tax, lawyer and legal fees, property survey, home inspection fee, property appraisal, title insurance and government registration fees.
Other substantial closing costs that you may need to pay include CMHC mortgage insurance, non-resident speculation tax (NSRT), GST/HST on new construction housing as well as interest adjustments and property tax adjustments.
land transfer tax
Land transfer tax (LTT) can be one of the most expensive closing costs, especially depending on where you purchase a home. If you purchase a home in Toronto, Ontario you will be subject to pay LTT at both the provincial and municipal level. In many provinces the cost of LTT is based on the value of the property purchased.
This means the more expensive your home is the more you will have to set aside for land transfer tax. While the cost of land transfer tax can be added to your mortgage reducing the intial cost, if the province you purchase your home in charges PST/GST on land transfer tax that will have to be paid immediately.
First-time homebuyers may be able to benefit from a first-time homebuyers rebate on their land transfer tax. It is important to use a land transfer tax calculator to help estimate these costs and prepare ahead of time.