Closing costs are the expenses you pay on top of your down payment to complete a home purchase. Some are taxes, some are fees for the people who make the transfer happen, and some are adjustments that settle bills the seller already paid. This page goes through each one: who charges it, roughly what it costs and when it’s due. To put a number on your own purchase, use the closing cost calculator; the closing costs guides also cover each province.
Closing costs at a glance
The ranges are rough guides, not quotes; your own costs depend on the province, the price and the people you hire.
| Cost | Rough range | Who charges it | When it’s paid |
|---|---|---|---|
| Land transfer tax or registration fees | Depends on the province and price | The province (in Quebec and Nova Scotia, the municipality) | On closing, through your lawyer or notary |
| Legal or notary fees and disbursements | $1,500 to $3,000 | Your lawyer or notary | On closing |
| Title insurance | $300 to $500 | A title insurer, arranged by your lawyer | On closing |
| Home inspection | $400 to $700 | A home inspector | Before closing, during the conditional period |
| Appraisal | $0 to $500 | The lender’s appraiser | Before closing, if the lender charges for it |
| Sales tax on the mortgage insurance premium | Only in some provinces, with less than 20% down | The province | In cash on closing |
| Property tax and utility adjustments | Depends on the closing date | Settled with the seller | On closing |
| Interest adjustment | Depends on the closing date | Your lender | On closing, or with the first payment |
| Home insurance | The first premium | Your insurer | Before the lender releases funds |
| Moving costs | $500 to $3,000 | Movers | Around closing |
Land transfer tax
Land transfer tax (called property transfer tax in BC, the welcome tax or transfer duties in Quebec, and deed transfer tax in Nova Scotia) is often the costliest item on the closing statement in the provinces that charge it; Alberta, Saskatchewan and Newfoundland and Labrador charge registration fees instead. It’s worked out from the price, with each province’s own brackets and first-time buyer refunds; the land transfer tax calculator has a page for each province, including British Columbia’s property transfer tax, Quebec’s welcome tax and Toronto’s municipal land transfer tax, which buyers in Toronto pay on top of Ontario’s.
Legal fees and disbursements
A lawyer (or a notary in Quebec, and in some BC purchases) handles the legal transfer: reviewing the purchase agreement, searching the title, registering the deed and the mortgage, paying the transfer tax and handing the money over on closing day. The bill has two parts.
| Legal cost | Rough range | What it covers |
|---|---|---|
| Professional fee | $1,000 to $2,000 | Reviewing the agreement, the title search, registering the mortgage, closing |
| Title search | $100 to $300 | Confirming the seller owns the property and finding any liens |
| Registration fees | $100 to $300 | Registering the deed and mortgage with the land registry |
| Courier, copies and admin | $50 to $150 | Out-of-pocket expenses (disbursements) |
Many real estate lawyers quote a flat fee, and quotes differ in whether disbursements are included. What the lawyer does at each stage is set out in what a real estate lawyer does.
Title insurance
Title insurance is a one-time premium, usually arranged by your lawyer, that covers losses from problems with the legal title such as an unknown lien, an encroachment or title fraud; most lenders require at least a lender’s policy. What each policy covers, what it excludes and how it compares with a survey are in the title insurance guide.
Home inspection and appraisal
A home inspection is usually a condition of your offer, so it’s paid before closing; what an inspector checks and what it costs are in the home inspection guide. An appraisal is ordered by the lender to confirm the property’s value. Some lenders pay for it, especially on an insured mortgage, and others pass the cost to the buyer.
Mortgage default insurance and sales tax on it
With less than 20% down, the mortgage has to be insured. The premium is a percentage of the loan and is normally added to the mortgage, so it isn’t a cash closing cost; the CMHC insurance calculator works it out. In some provinces, though, provincial sales tax applies to the premium and has to be paid in cash on closing: see which provinces charge PST on mortgage insurance.
Property tax and utility adjustments
When the seller has prepaid property tax or utilities for a period after closing, you reimburse them for your share; when the seller is behind, you get a credit. Your lawyer works these out on the statement of adjustments.
| Scenario | What you pay |
|---|---|
| Closing on July 1; the seller prepaid a full year’s property tax of $5,000 | You reimburse the seller $2,500 for July to December |
| Closing on March 1; the year’s property tax isn’t paid yet | No reimbursement; you pay the tax bill when it comes |
Each line of that statement is explained in the statement of adjustments explained.
Interest adjustment
If your mortgage funds partway through a payment period, the lender charges interest for the days between closing and the date your regular payment schedule starts. Depending on the lender it is taken from the mortgage advance on closing day or added to your first payment. How it’s calculated, and how the closing date changes it, is explained in the mortgage interest adjustment date guide.
Home insurance
Your lender asks for proof of home insurance before it releases the mortgage funds, so the first premium is due by closing.
| Insurance type | Annual premium | What it covers |
|---|---|---|
| Homeowner’s policy | $800 to $2,000 (rough range) | The building, contents, liability and extra living costs |
| Condo unit policy | $300 to $600 (rough range) | Unit improvements, contents and liability; the condo corporation insures the building |
| Tenant insurance (if you rent first) | About $261 a year (APOLLO Insurance’s average for the tenant policies it issued, July 1, 2025 to June 30, 2026) | Contents and liability only |
Costs buyers often forget
| Cost | Rough range | When it comes up |
|---|---|---|
| Mortgage broker fee (B-lender or private mortgages) | $0 to $3,000 or more | On closing; brokers placing a mortgage with a bank or other A-lender are usually paid by the lender |
| Condo status certificate (estoppel certificate in Alberta) | $100 to $200 | Before closing |
| Bridge financing, if you buy before you sell | $1,000 to $3,000 | When the two closings don’t line up |
| Immediate repairs or appliances | $2,000 to $10,000 | The first weeks of ownership |
| Utility connection fees | $100 to $300 | The first month |
| Rekeying the locks | $200 to $400 | Possession day |
Getting the money ready
| Step | Details |
|---|---|
| Keep closing costs separate from the down payment | The lender checks that you have both |
| Ask your lawyer for the statement of adjustments ahead of time | It shows the exact amount due before closing day |
| Move the funds a few days before closing | Lawyers usually ask for a bank draft or wire transfer; a personal cheque isn’t accepted |
Before closing, the down payment itself is usually the bigger number: the mortgage down payment calculator shows the minimum for your price. A buyer of a newly built home may also get some of the GST or HST back through the GST/HST new housing rebate, and first-time buyer mistakes to avoid covers the budgeting errors that come up most often.