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 that should be planned for include 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 (NRST), GST/HST on new construction housing, as well as interest adjustments and property tax adjustments.
Comprehensive table of closing costs
The following table outlines all potential closing costs when purchasing a home in Canada, along with typical ranges:
| Closing Cost | Typical Range | When Paid | Notes |
|---|---|---|---|
| Land transfer tax (LTT) | 0.5% – 3%+ of purchase price | On closing day | Varies by province; Toronto has municipal LTT too |
| Legal fees | $1,000 – $2,500 | On closing day | Includes title search, document preparation, registration |
| Title insurance | $300 – $500 | On closing day | Protects against title defects and fraud |
| Home inspection | $400 – $600 | Before closing (at offer) | Optional but strongly recommended |
| Property appraisal | $300 – $500 | Before closing | May be required by lender; sometimes lender-covered |
| Property survey | $1,000 – $2,000 | Before closing | May not be required if title insurance is purchased |
| Mortgage default insurance (CMHC) | 2.8% – 4% of mortgage | Added to mortgage or on closing | Required if down payment is less than 20% |
| PST on mortgage insurance | 8% – 9% of CMHC premium | On closing day | Applies in ON, QC, SK — cannot be added to mortgage |
| GST/HST (new construction) | 5% – 15% of purchase price | On closing day | Applies to new builds; partial rebates may be available |
| Interest adjustment | Varies | On closing day | Interest from closing date to first payment date |
| Property tax adjustment | Varies | On closing day | Reimburses seller for prepaid property taxes past closing |
| Utility adjustments | $100 – $500 | On closing day | Water, hydro, and other prepaid utilities |
| Moving costs | $500 – $3,000+ | Around closing | Depends on distance and volume |
| Home insurance | $800 – $2,000/year | Before closing | Required by lender before funds are released |
| Estoppel certificate (condo) | $100 – $200 | Before closing | Confirms condo’s financial status and rules |
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 in some cases, if the province you purchase your home in charges PST on mortgage insurance, that must be paid immediately.
First-time homebuyers may be able to benefit from a first-time homebuyer’s 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.
Buyer closing costs vs. seller closing costs
Both buyers and sellers incur closing costs, but they are very different:
Buyer closing costs
| Cost | Typical Amount |
|---|---|
| Land transfer tax | 0.5% – 3%+ of purchase price |
| Legal fees | $1,000 – $2,500 |
| Title insurance | $300 – $500 |
| Home inspection | $400 – $600 |
| Appraisal | $300 – $500 |
| Mortgage insurance (if applicable) | 2.8% – 4% of mortgage (added to loan) |
| PST on mortgage insurance | 8% – 9% of insurance premium |
| Home insurance | $800 – $2,000/year |
| Total buyer closing costs | Typically 1.5% – 4% of purchase price |
Seller closing costs
| Cost | Typical Amount |
|---|---|
| Real estate commission | 3% – 5% of sale price |
| Legal fees | $800 – $1,500 |
| Mortgage discharge/payout penalty | Varies — could be $0 to $20,000+ |
| Outstanding property taxes | Varies |
| Repairs or staging | Varies |
| Capital gains tax (investment property) | Depends on gain and tax bracket |
| Total seller closing costs | Typically 4% – 7% of sale price |
First-time homebuyer programs that offset closing costs
Several federal and provincial programs can help first-time buyers reduce their upfront costs:
| Program | Benefit | Eligibility |
|---|---|---|
| Land Transfer Tax Rebate | Up to $4,000 (ON provincial) + $4,475 (Toronto municipal); varies by province | First-time homebuyer; primary residence |
| Home Buyers’ Plan (HBP) | Withdraw up to $60,000 from RRSP tax-free for a down payment | First-time buyer or have not owned in 4+ years |
| First Home Savings Account (FHSA) | Contribute up to $8,000/year (max $40,000) tax-deductible; withdraw tax-free for home purchase | Canadian resident, age 18+, first-time buyer |
| GST/HST New Housing Rebate | Rebate of up to 36% of GST paid on new construction under $450,000 | Purchasing a newly built home as primary residence |
| Home Buyers’ Tax Credit | $10,000 non-refundable federal tax credit ($1,500 tax savings) | First-time buyer; claim on tax return |
Use our FHSA calculator and RRSP calculator to see how these savings accounts can help you save for your home purchase.
Province-specific closing cost considerations
Ontario
- Provincial land transfer tax plus Toronto municipal land transfer tax if purchasing in Toronto
- PST (8%) is charged on CMHC mortgage insurance premiums and must be paid at closing — this cannot be added to your mortgage
- First-time buyer rebates available for both provincial and municipal LTT
Quebec
- Welcome tax (mutation tax) replaces land transfer tax, calculated on a tiered scale based on property value
- QST (9.975%) applies to mortgage insurance premiums
- Notary fees replace lawyer fees (typically $1,000 – $1,500)
British Columbia
- Property transfer tax is 1% on the first $200,000, 2% on $200,001 to $2,000,000, and 3% on the remainder
- First-time buyers may be exempt on properties up to $835,000 (threshold updated periodically)
- Foreign buyer tax of 20% in designated areas (Metro Vancouver, etc.)
Saskatchewan
- PST (6%) applies to mortgage insurance premiums and must be paid at closing
Alberta
- No land transfer tax — only a property transfer fee based on property value (typically much lower than LTT)
- This makes Alberta one of the most affordable provinces for closing costs
Timeline: when each closing cost is paid
| Timing | Costs Due |
|---|---|
| At offer / before closing | Home inspection ($400–$600), deposit (typically 5% of purchase price held in trust) |
| Before closing | Home insurance (proof required by lender), property appraisal (if requested) |
| On closing day | Land transfer tax, legal fees, title insurance, property survey, PST on CMHC insurance, interest adjustment, property tax adjustment, utility adjustments |
| Added to mortgage | CMHC mortgage insurance premium (added to balance; some lenders allow LTT to be added in certain cases) |
| After closing | Moving costs, immediate repairs or changes |
How to budget for closing costs
A common rule of thumb is to set aside 1.5% to 4% of the purchase price for closing costs. On a $600,000 home, that means budgeting $9,000 to $24,000 on top of your down payment. First-time buyers are often caught off guard by these expenses, so it is important to plan early. Using a mortgage calculator alongside this tool gives you a complete picture of your monthly obligations, while a mortgage down payment calculator helps you determine how much cash you need upfront before factoring in closing costs.
Related calculators
- Land Transfer Tax Calculator — Estimate your provincial and municipal land transfer tax
- Mortgage Calculator — Calculate your regular mortgage payments
- Mortgage Down Payment Calculator — Plan your down payment and cash requirements
- Mortgage Insurance Calculator — Estimate CMHC insurance premiums
- Mortgage Affordability Calculator — Find out how much home you can afford
- FHSA Calculator — Model savings in your First Home Savings Account
- RRSP Calculator — Plan RRSP withdrawals under the Home Buyers’ Plan
- Loan-to-Value Calculator — Understand your LTV and insurance requirements