Costs6 min read
Closing Costs in Canada
Land transfer tax, legal fees, inspections and more.
Closing costs are the one-time expenses on top of your down payment. Budget 1.5%–4% of the purchase price.
The main line items
- Land transfer tax (province + sometimes municipality)
- Legal/notary fees: $1,000–$2,000
- Title insurance: $250–$400
- Home inspection: $400–$700
- Property appraisal: $300–$500 (sometimes covered by lender)
- Property tax & utility adjustments to the seller
- PST on CMHC premium (ON, QC, SK)
- Moving costs
Land transfer tax examples
- Ontario (excl. Toronto): ~$8,475 on a $700,000 home
- Toronto: ~$16,950 (province + city)
- BC: ~$12,000 on a $700,000 home
- Alberta: no land transfer tax — small title registration fee instead
First-time buyer rebates
- Ontario: up to $4,000 LTT rebate
- Toronto: additional $4,475
- BC: full exemption on homes under $500,000 (partial up to $835,000)
Lender requirement
Most lenders require proof of 1.5% of the purchase price in liquid funds for closing — separate from the down payment.
Key takeaways
- Budget 1.5–4% on top of the down payment
- Land transfer tax is the biggest single item in most provinces
- First-time buyers get meaningful rebates in some provinces
- Lender will verify you have closing funds available
Sources used
Disclaimer: This guide is for educational purposes only and does not constitute financial, mortgage, legal, or tax advice. Always verify details with qualified professionals and financial institutions.