What are typical closing costs in Canada?

Total closing costs for a resale home purchase in Canada typically range from 1.5% to 4% of the purchase price. The main components are land transfer tax (the largest item in most provinces), legal fees ($1,500 to $2,500), title insurance ($250 to $450), home inspection ($400 to $600), and property tax adjustments. Alberta and Saskatchewan have no land transfer tax, so total closing costs there are generally 1% to 1.5%.

Are closing costs included in the mortgage?

No. Closing costs must generally be paid from the buyer's own cash resources at closing. CMHC mortgage insurance rules require that the down payment come from the buyer's own funds, and lenders do not add closing costs to the mortgage principal. The one exception is the CMHC insurance premium itself, which is added to the mortgage balance (though any PST on that premium must be paid in cash at closing).

Do first-time buyers pay lower closing costs?

First-time buyers pay lower land transfer tax in Ontario (rebate up to $4,000) and BC (exemption on homes to $500,000, phase-out to $524,999). In Toronto, first-time buyers also receive a municipal LTT rebate of up to $4,475. All other closing costs (legal fees, title insurance, inspection, adjustments) are the same for first-time and repeat buyers.

When are closing costs due?

Closing costs are paid on the closing date, the day ownership legally transfers. The purchaser's lawyer receives funds from the lender and buyer, pays the vendor, and disburses all closing costs including LTT (remitted to the province through Teraview or the equivalent provincial system), legal fees, and adjustments. The buyer must have sufficient funds in their lawyer's trust account before closing.

Does HST apply to closing costs?

Legal fees for the purchase of a resale home are subject to HST in Ontario (13%) and GST in other provinces (5%). Home inspection fees are subject to applicable provincial sales tax. Title insurance premiums are exempt from HST in Ontario. Land transfer tax itself is not subject to HST. For new construction, the purchase price typically includes HST subject to a possible new housing rebate.

What is title insurance and is it required?

Title insurance is a one-time premium paid at closing that protects against defects in title, encroachments, survey errors, and title fraud. Lenders require a lender policy as a mortgage condition. An owner policy that protects the buyer is optional but recommended by most real estate lawyers. The premium for a $700,000 home is typically $300 to $450 for a combined lender and owner policy, paid once with no annual renewal.

Do I need a home inspection?

Home inspections are optional, not legally required, but are strongly recommended. They typically cost $400 to $600 for a standard detached home. In highly competitive offers where waiving conditions is common, some buyers forgo the inspection. This eliminates the cost but removes protection against discovering major defects before purchase. The Canadian Association of Home and Property Inspectors (CAHPI) maintains a registry of qualified inspectors.

What is a status certificate for a condo purchase?

A status certificate is a disclosure package issued by the condominium corporation that shows the building's financial health, reserve fund level, budget, any pending special assessments, and active legal proceedings. Under Ontario's Condominium Act, 1998, a buyer has 10 days to review the status certificate after receiving it. The corporation may charge up to $100. The buyer's lawyer typically reviews it as part of the standard legal fee.

Are closing costs tax deductible?

For a principal residence, closing costs are generally not tax deductible. For an investment or rental property, LTT and legal fees are added to the adjusted cost base (ACB), reducing the taxable capital gain on eventual sale. They cannot be deducted as current expenses in the year of purchase. Moving expenses are deductible for employment or business moves meeting CRA criteria under section 62 of the Income Tax Act.

How much cash do I need beyond the down payment?

Budget 1.5% to 4% of the purchase price in closing costs, in addition to the down payment. For a $700,000 home in Ontario (repeat buyer, not in Toronto), plan for approximately $12,000 to $15,000 in closing costs beyond the down payment. In Toronto, add another $9,000 to $10,000 for the municipal LTT. First-time buyers in Ontario recover $4,000 of the provincial LTT and up to $4,475 of the Toronto LTT.

Closing Cost Calculator Canada 2025 — Total Buying Costs Breakdown

Add up every closing cost when buying a home in Canada: land transfer tax (provincial + Toronto), legal fees, title insurance, home inspection, CMHC premium PST, and property tax adjustments. First-time buyer rebates included.

Reviewed by Ben Stevenson, Editor Updated April 25, 2026 Source Provincial 2025

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Closing costs are the expenses paid at or near the time of a real estate purchase, in addition to the down payment. In Canada, total closing costs typically range from 1.5% to 4% of the purchase price, depending on province, property type, and buyer status. The largest single item is usually land transfer tax. Legal fees, title insurance, home inspection, and property tax adjustments make up most of the remainder. This calculator sums all major components based on your purchase price and province.

What are typical closing costs when buying a home in Canada?

On a $700,000 home in Ontario, a repeat buyer (no first-time buyer rebates) can expect: Ontario land transfer tax of approximately $9,475; Toronto municipal LTT of $9,475 if the property is in Toronto; legal fees and disbursements of $1,500 to $2,500; title insurance of $250 to $400; home inspection of $400 to $600; property tax adjustment of $500 to $1,500 depending on when in the year the purchase closes; and status certificate review of $100 if purchasing a condominium. Total without Toronto LTT: roughly $12,000 to $14,000, or 1.7% to 2.0% of purchase price.

How each closing cost is calculated

Land transfer tax

Land transfer tax is the largest closing cost in most provinces. It is computed using each province’s published marginal bracket rates on the purchase price. In Ontario the rates are 0.5% on the first $55,000, rising to 2.5% above $2,000,000. BC uses 1.0% on the first $200,000 rising to 5.0% above $3,000,000. Alberta and Saskatchewan do not charge LTT, though Alberta applies a land title transfer fee of roughly $350. First-time home buyers in Ontario receive a rebate of up to $4,000; in BC, a full exemption applies on homes up to $500,000 phasing out by $524,999. Toronto buyers pay a second municipal LTT at the same Ontario rates. The closing cost calculator applies all province-specific rates and rebates automatically.

Legal fees and disbursements

A real estate lawyer or notary (Quebec) is required to close a mortgage-secured purchase in Canada. Legal fees for a residential purchase typically range from $1,200 to $2,000 for the lawyer’s time, plus disbursements of $300 to $700 for title search, registration, courier, and land registry fees. The total legal closing cost is usually $1,500 to $2,500. Quebec notary fees tend to be higher, often $1,800 to $3,000, because the notary performs additional functions including deed preparation and publication of rights. The calculator uses a default legal fee range midpoint of $1,800, adjustable in the inputs.

Title insurance

Title insurance is a one-time premium paid at closing that covers the lender (and optionally the buyer) against defects in title, survey issues, encroachments, and title fraud. Most lenders in Canada require a lender title insurance policy as a condition of the mortgage. The buyer policy is optional but strongly recommended by real estate lawyers. For a $700,000 home, a combined lender and owner policy from a major Canadian provider (FCT, Stewart, Chicago Title) typically costs $250 to $450. The premium is paid once and the policy has no expiry.

Home inspection

A pre-purchase home inspection is conducted by a Registered Home Inspector (RHI) or equivalent and typically costs $400 to $600 for a standard detached home, with higher fees for larger properties, condominiums with common elements, or older homes with complex systems. In competitive offer situations, some buyers waive the inspection condition, which eliminates this cost but increases risk. The calculator defaults to $500 as a representative estimate.

CMHC premium PST

When a buyer puts less than 20% down on a home priced below $1,500,000, CMHC charges a mortgage insurance premium that is added to the mortgage principal. Ontario, Manitoba, Quebec, and Saskatchewan require buyers to pay provincial sales tax on the CMHC premium at closing; this PST cannot be added to the mortgage and must come from the buyer’s own funds. At Ontario’s HST rate of 8% (the provincial portion), a $20,000 CMHC premium incurs $1,600 in PST due at closing. The calculator includes this line item automatically when the down payment is below 20% and the province charges PST on CMHC premiums.

Property tax and utility adjustments

On closing day, the purchaser credits the vendor for any prepaid property taxes or credits the vendor for taxes that are outstanding. The adjustment depends on the local property tax payment schedule and the closing date. For a closing on June 1 where property taxes are paid semi-annually (e.g., January and July), the buyer credits the vendor for taxes paid from June 1 to June 30. The calculator estimates this as roughly one month of property tax (annual taxes divided by 12) as a default, adjustable based on the expected closing date.

Status certificate review (condominiums)

When purchasing a condominium, buyers and their lawyers review the status certificate — a document package issued by the condominium corporation that discloses reserve fund health, budget, any special assessments, and legal proceedings. The condominium corporation may charge up to $100 for the status certificate under the Condominium Act, 1998 (Ontario). The lawyer’s time to review it is included in the base legal fee in most cases, though complex situations may attract an additional fee of $100 to $200.

Verified against source

Ontario land transfer tax rates are confirmed from the Ontario Ministry of Finance Land Transfer Tax page. BC property transfer tax rates are confirmed from the BC Ministry of Finance PTT page. CMHC premium rates are confirmed from cmhc-schl.gc.ca. PST on CMHC premiums is confirmed from the Ontario, Manitoba, Quebec, and Saskatchewan provincial revenue agency pages. Title insurance pricing is based on rates published by FCT Insurance Company for 2025. Legal fee estimates reflect the range published by the Law Society of Ontario for residential real estate transactions. These values were verified in April 2026.

Closing cost estimates by purchase price (Ontario, repeat buyer, no Toronto LTT)

Purchase price	Ontario LTT	Legal fees	Title insurance	Inspection	Approx. total
$400,000	$4,475	$1,800	$300	$500	~$7,500
$600,000	$8,475	$1,800	$350	$500	~$11,500
$800,000	$12,475	$2,000	$400	$500	~$15,800
$1,000,000	$16,475	$2,200	$450	$500	~$20,100
$1,500,000	$28,975	$2,500	$500	$600	~$33,500

These are estimates. Property tax adjustments, condo status fees, and other items vary by property and closing date.

Why closing costs are a distinct cash requirement

Closing costs are separate from the down payment and cannot be borrowed as part of the mortgage in most cases. CMHC mortgage insurance rules require that the down payment come from the buyer’s own resources (not borrowed funds, with limited exceptions for equity from another property). Closing costs are an additional cash requirement on top of the down payment. A buyer purchasing a $700,000 home with 10% down ($70,000) in Ontario needs approximately $70,000 for the down payment plus $12,000 to $15,000 in closing costs, for a total liquid cash requirement of $82,000 to $85,000.

Many first-time buyers underestimate this total and are surprised to learn that their pre-approval amount does not account for closing costs. Including a separate closing cost savings target in the home purchase plan is standard advice from real estate lawyers and mortgage professionals.

Edge cases and items not included

New construction HST/GST rebate

New construction homes are subject to GST (5%) or HST (13% in Ontario), applied to the purchase price. The Canada New Housing Rebate provides a partial GST/HST refund on homes priced below $450,000, phasing out to zero by $450,000. For homes above $450,000, no federal rebate applies and the full HST is embedded in the purchase price. Builder prices for new construction are typically quoted inclusive of HST, so the buyer does not separately pay GST/HST at closing unless purchasing directly without a rebate assignment. This calculator applies to resale purchases; new construction HST treatment requires separate analysis.

Moving costs

Truck rental, professional movers, and temporary storage are costs associated with the move but not with the closing. They are not included in this calculator. Professional local moves in major Canadian cities typically cost $1,000 to $3,000; long-distance moves can cost $5,000 to $15,000 depending on volume and distance.

Bridge financing

When a buyer closes on a new purchase before their existing home closes, a bridge loan covers the gap. Bridge financing fees typically include a setup fee of $200 to $500 and interest at prime plus 2% to 3% for the bridge period. These costs depend on the specific overlap period and are not included in the standard closing cost estimate.

Non-resident additional taxes

Non-Canadian citizens and non-permanent residents purchasing residential property in Ontario (outside designated exemptions) pay the Non-Resident Speculation Tax (NRST) of 25% at closing, in addition to LTT. In BC, the Foreign Buyer Tax (20%) applies to residential property in designated regions. These taxes are by far the largest closing cost for non-resident buyers and are not included in the default closing cost calculation. Selecting “Non-resident buyer” in the calculator adds the applicable provincial surcharge.

Methodology

Total closing costs are the sum of: (1) provincial LTT computed on the marginal bracket schedule, plus Toronto municipal LTT where applicable, net of applicable first-time buyer rebates; (2) legal fees estimated at the midpoint of the typical range for a residential purchase; (3) title insurance estimated from FCT 2025 published rates; (4) home inspection defaulting to $500; (5) PST on CMHC premium where applicable (Ontario, Manitoba, Quebec, Saskatchewan); (6) property tax adjustment estimated as one month of annual property tax. All values are adjustable in the calculator inputs.

Frequently asked questions

What are typical closing costs in Canada?: Total closing costs for a resale home purchase in Canada typically range from 1.5% to 4% of the purchase price. The main components are land transfer tax (the largest item in most provinces), legal fees ($1,500 to $2,500), title insurance ($250 to $450), home inspection ($400 to $600), and property tax adjustments. Alberta and Saskatchewan have no land transfer tax, so total closing costs there are generally 1% to 1.5%.
Are closing costs included in the mortgage?: No. Closing costs must generally be paid from the buyer's own cash resources at closing. CMHC mortgage insurance rules require that the down payment come from the buyer's own funds, and lenders do not add closing costs to the mortgage principal. The one exception is the CMHC insurance premium itself, which is added to the mortgage balance (though any PST on that premium must be paid in cash at closing).
Do first-time buyers pay lower closing costs?: First-time buyers pay lower land transfer tax in Ontario (rebate up to $4,000) and BC (exemption on homes to $500,000, phase-out to $524,999). In Toronto, first-time buyers also receive a municipal LTT rebate of up to $4,475. All other closing costs (legal fees, title insurance, inspection, adjustments) are the same for first-time and repeat buyers.
When are closing costs due?: Closing costs are paid on the closing date, the day ownership legally transfers. The purchaser's lawyer receives funds from the lender and buyer, pays the vendor, and disburses all closing costs including LTT (remitted to the province through Teraview or the equivalent provincial system), legal fees, and adjustments. The buyer must have sufficient funds in their lawyer's trust account before closing.
Does HST apply to closing costs?: Legal fees for the purchase of a resale home are subject to HST in Ontario (13%) and GST in other provinces (5%). Home inspection fees are subject to applicable provincial sales tax. Title insurance premiums are exempt from HST in Ontario. Land transfer tax itself is not subject to HST. For new construction, the purchase price typically includes HST subject to a possible new housing rebate.
What is title insurance and is it required?: Title insurance is a one-time premium paid at closing that protects against defects in title, encroachments, survey errors, and title fraud. Lenders require a lender policy as a mortgage condition. An owner policy that protects the buyer is optional but recommended by most real estate lawyers. The premium for a $700,000 home is typically $300 to $450 for a combined lender and owner policy, paid once with no annual renewal.
Do I need a home inspection?: Home inspections are optional, not legally required, but are strongly recommended. They typically cost $400 to $600 for a standard detached home. In highly competitive offers where waiving conditions is common, some buyers forgo the inspection. This eliminates the cost but removes protection against discovering major defects before purchase. The Canadian Association of Home and Property Inspectors (CAHPI) maintains a registry of qualified inspectors.
What is a status certificate for a condo purchase?: A status certificate is a disclosure package issued by the condominium corporation that shows the building's financial health, reserve fund level, budget, any pending special assessments, and active legal proceedings. Under Ontario's Condominium Act, 1998, a buyer has 10 days to review the status certificate after receiving it. The corporation may charge up to $100. The buyer's lawyer typically reviews it as part of the standard legal fee.
Are closing costs tax deductible?: For a principal residence, closing costs are generally not tax deductible. For an investment or rental property, LTT and legal fees are added to the adjusted cost base (ACB), reducing the taxable capital gain on eventual sale. They cannot be deducted as current expenses in the year of purchase. Moving expenses are deductible for employment or business moves meeting CRA criteria under section 62 of the Income Tax Act.
How much cash do I need beyond the down payment?: Budget 1.5% to 4% of the purchase price in closing costs, in addition to the down payment. For a $700,000 home in Ontario (repeat buyer, not in Toronto), plan for approximately $12,000 to $15,000 in closing costs beyond the down payment. In Toronto, add another $9,000 to $10,000 for the municipal LTT. First-time buyers in Ontario recover $4,000 of the provincial LTT and up to $4,475 of the Toronto LTT.