Closing costs for
home buyers in Canada,
itemized.

As a general rule, budget between 1.5% and 4% of the purchase price for closing costs, paid in cash on top of your down payment. The single biggest variable is land transfer tax, which differs sharply by province — and by city in places like Toronto, which levies a second municipal land transfer tax. First-time-buyer rebates can lower the total substantially. The most reliable way to know your figure is to run your price and location through our closing costs calculator.

Land transfer tax is a provincial (and sometimes municipal) tax charged when property changes hands, calculated as a sliding percentage of the purchase price. It’s usually the largest single closing cost — often several thousand to well over ten thousand dollars on a typical home. Toronto buyers pay it twice: once provincially and once to the city. Ontario (up to $4,000), Toronto (up to $4,475), British Columbia and PEI offer first-time-buyer relief; Alberta, Saskatchewan and Newfoundland and Labrador charge registration fees instead of a land transfer tax. Our land transfer tax calculator gives you the exact figure for your province and city.

You need a real estate lawyer (or notary in some provinces) to close the purchase — they review the contract, conduct title searches, register the mortgage and transfer, handle the money, and arrange title insurance. Expect legal fees plus disbursements (the lawyer’s out-of-pocket costs for searches and registration) to run roughly a four-figure sum in total. Ask for a quote that separates the fee from disbursements so you can compare lawyers fairly.

Title insurance is a one-time policy that protects against title defects — fraud, survey errors, unknown liens, or encroachments — that could threaten your ownership. Lenders almost always require a policy protecting their interest, and buyers are strongly encouraged to add owner’s coverage for themselves. It’s a modest one-time premium paid at closing, and it’s cheap insurance against expensive problems. Your lawyer arranges it as part of closing.

Often yes, and they’re different things. A home inspection is optional but wise — an inspector checks the physical condition of the property so you know what you’re buying, and you pay for it directly. An appraisal estimates the property’s market value for the lender; it’s sometimes required as a mortgage condition and sometimes covered by the lender, but on many files the buyer pays. Budget for both when you’re making an offer that isn’t insured or is above a lender’s automated valuation threshold.

Adjustments reconcile costs the seller prepaid that cover the period after you take ownership. The most common is property tax: if the seller already paid the year’s taxes, you reimburse them for the portion covering your months of ownership. Prepaid utilities, condo fees, or heating oil can be adjusted the same way. Your lawyer calculates these on the statement of adjustments and folds them into the cash you bring to closing — they’re usually modest but can catch buyers off guard.

If your down payment is under 20%, you need default (CMHC or equivalent) insurance, and the premium itself is added to your mortgage and financed over time. But Ontario, Quebec and Saskatchewan charge provincial sales tax on that insurance premium, and that PST cannot be financed. You pay it in cash at closing. It catches many first-time buyers by surprise because the premium feels like it’s wrapped into the mortgage, yet the tax on it is an out-of-pocket closing cost. Our CMHC insurance calculator shows both the premium and the PST.

Mostly no. Land transfer tax, legal fees, title insurance, inspection, appraisal, adjustments, and the PST on your CMHC premium are almost always paid in cash at closing and cannot be rolled into the mortgage. On insured mortgages, lenders typically require you to show roughly 1.5% of the purchase price available for closing costs on top of your down payment. The CMHC premium itself is the main exception — it’s financed — but the tax on it is not. Plan to have the cash ready.

The line items are the same, but first-time buyers often qualify for relief that lowers the total — most notably provincial (and in Toronto, municipal) land transfer tax rebates, which can save thousands or eliminate the tax entirely up to a threshold. Other federal first-time-buyer incentives may also apply. Because the rules and thresholds vary by province, it’s worth confirming what you qualify for before you set your budget.