Closing costs in Canada typically run 1.5% to 4% of the purchase price, paid in cash on or before the closing day. The largest single line is usually land transfer tax (LTT), followed by legal fees and disbursements. Closing costs are paid in addition to the down payment and cannot be financed into the mortgage, so first-time buyers need to budget for them separately. Exact totals depend on your province, municipality, whether the home is new construction (GST/HST applies) or resale, and whether you carry CMHC insurance with provincial PST on the premium.
Quick answer: Plan for 1.5-4% of the purchase price in cash closing costs. On a $600,000 home that’s $9,000-$24,000. The biggest line is usually land transfer tax (Ontario, BC, Quebec, Manitoba); Alberta and Saskatchewan have only registration fees.
What this means: Closing costs are paid in cash at closing on top of the down payment. Underestimating this number is one of the most common reasons buyers stretch themselves at closing or scramble for last-minute funds.
What to do next: Add up your specific closing costs by province, home price, and CMHC status. Calculate closing costs →
The main components of closing costs
| Component | Typical range | Notes |
|---|---|---|
| Land transfer tax | $0 – $30,000+ | 0% in AB/SK; 0.5-2.5% in ON; up to 5%+ in Toronto and BC over $3M |
| Legal fees and disbursements | $1,200 – $3,000 | Higher with title transfers, survey issues, or new construction |
| Title insurance | $200 – $500 | One-time premium covering title defects |
| Home inspection | $400 – $800 | Paid before closing; optional but strongly recommended on resale homes |
| Property appraisal | $300 – $500 | Required by lender; sometimes waived for low-LTV deals |
| Mortgage default insurance PST | 0-9% of CMHC premium | Cash at closing in ON (8%), QC (9%), MB (7%), SK (6%) |
| Property tax / utility adjustment | $300 – $2,000 | Reimburse seller for prepaid taxes and utilities |
| HST/GST on new construction | 0-13% of purchase | New builds and substantial renovations; rebates may apply |
| Status certificate (condo) | $100 – $250 | Condo purchases only |
| Moving and immediate-occupancy costs | $500 – $3,000 | Movers, utility hookups, insurance, mail forwarding |
Your exact total depends on the home, the province, the municipality, and whether you’re a first-time buyer eligible for rebates. Get a written quote from your real estate lawyer before assuming any specific number.
Land transfer tax: the biggest variable
LTT is paid to your provincial government, and in Toronto an additional municipal LTT is layered on top. The structure is tiered, so the marginal rate is higher on the portion of the price above each threshold.
- Ontario: 0.5% to 2.5% in four tiers, plus a Toronto municipal LTT for Toronto purchases.
- British Columbia: 1% to 5% in tiers, with an extra 2% on residential portion over $3 million and a 20% foreign buyer PTT in designated areas.
- Quebec: “Welcome tax” (droit de mutation) varies by municipality, typically 0.5% to 2.5%.
- Manitoba, New Brunswick, Nova Scotia, PEI, Newfoundland: Lower LTT, generally 0.5% to 2% with some municipal variation in NS.
- Alberta, Saskatchewan, Yukon, NWT, Nunavut: No LTT; instead small registration fees ($150-$3,600 depending on price).
First-time buyer rebates can offset some or all LTT in Ontario (up to $4,000), Toronto (up to $4,475), BC (full exemption to $500K, partial to $835K), and PEI. Confirm eligibility with your lawyer. See Land transfer tax across Canada for province-by-province rates and a Toronto worked example.
Legal fees and disbursements
Real estate lawyers handle title search, mortgage registration, statements of adjustments, and the actual transfer of funds at closing. Most charge a flat fee plus disbursements (out-of-pocket costs like title insurance, registration fees, courier, software charges). For a straightforward resale purchase, expect $1,500-$2,500 all-in. Complex purchases (new construction, assignments, multi-title parcels) cost more.
PST on CMHC insurance (sneaky line)
If you put less than 20% down, your CMHC insurance premium is added to the mortgage and amortized over the loan period — you don’t pay it in cash. However, the provincial sales tax on that premium is paid in cash at closing in:
- Ontario — 8%
- Quebec — 9%
- Manitoba — 7%
- Saskatchewan — 6%
Example: $400,000 mortgage at 10% down has a 3.10% CMHC premium = $12,400 added to mortgage. The Ontario PST on that is $12,400 × 8% = $992 cash at closing. This catches many first-time buyers by surprise. For the full CMHC premium schedule by LTV, see CMHC mortgage insurance premiums in 2026.
HST/GST on new construction
New-build homes and substantially renovated properties are subject to GST/HST (depending on province). Most builder advertised prices include this tax, but always confirm. Federal and provincial new housing rebates are available, with full rebates for homes under $350K and partial rebates up to $450K (federal). Assignments of pre-construction contracts can also trigger HST — talk to a tax professional or your lawyer if you’re buying a flip or assignment.
Statements of adjustments
At closing, you reimburse the seller for any property taxes or utilities they paid in advance for periods after closing day. If the seller paid full-year property taxes in March and you close in September, you owe roughly four months’ worth back. Your lawyer calculates this on the statement of adjustments and adds it to the closing day funds.
Beyond the lawyer’s office
Closing day isn’t the only cost. Plan for movers ($500-$3,000), utility transfers and hookups, home insurance (required for mortgage closing), mail forwarding through Canada Post, and the inevitable first-month expenses like cleaning, paint touch-ups, locks, and basic furniture or appliances.
Worked example: $600,000 home in Ontario (Toronto)
First-time buyer with 10% down, financed with CMHC insurance, resale property.
| Component | Amount |
|---|---|
| Ontario LTT (4 tiers) | $8,475 |
| Toronto municipal LTT | $8,475 |
| Less Ontario first-time buyer rebate | −$4,000 |
| Less Toronto first-time buyer rebate | −$4,475 |
| Net LTT | $8,475 |
| Legal fees + disbursements | $2,000 |
| Title insurance | $350 |
| Home inspection | $500 |
| Property appraisal (often lender-covered) | $400 |
| PST on CMHC premium (3.1% × $540K × 8%) | $1,339 |
| Property tax adjustment estimate | $800 |
| Moving and utilities | $1,500 |
| Cash needed at closing (excluding down payment) | $15,364 |
$15,364 on a $600,000 home is about 2.6% of the purchase price — mid-range for this scenario. The same buyer in Calgary would pay roughly $4,500 in closing costs (no LTT, no PST on CMHC). Province matters more than any other variable for total closing costs.
How to budget realistically
- Add up the items above using ranges that fit your province and home price.
- Use the high end of each range when budgeting (better to have leftover cash than a closing-day scramble).
- Get a written closing cost estimate from your lawyer 2-3 weeks before closing.
- Keep these funds in cash or HISA — not in market investments — so they’re available on time.
Frequently asked questions
- How much are closing costs in Canada?
- Typically 1.5% to 4% of the purchase price, paid in cash at closing on top of the down payment. The biggest variable is land transfer tax, which ranges from $0 in Alberta and Saskatchewan to over 5% in Toronto.
- Can I finance closing costs into my mortgage?
- No. Land transfer tax, legal fees, PST on CMHC premiums, and other closing costs must be paid in cash. Only the CMHC premium itself can be added to the mortgage.
- Do first-time buyers get any closing cost relief?
- Yes in some provinces. Ontario rebates up to $4,000 in LTT, Toronto up to $4,475, BC fully exempts homes up to $500,000 (partial to $835,000), and PEI rebates LTT. Confirm with your lawyer.
- What is PST on CMHC insurance?
- Ontario (8%), Quebec (9%), Manitoba (7%), and Saskatchewan (6%) charge provincial sales tax on the CMHC premium itself, paid in cash at closing. Other provinces do not.
- Are closing costs different for new construction?
- Yes. New-build homes are subject to GST/HST (with rebates for homes under $450K), and legal fees are often higher because of more complex documentation.
- Do I need a home inspection?
- It is optional but strongly recommended for resale homes. Cost is $400-$800 and is paid before closing. Inspections are often waived for new construction with a Tarion warranty (Ontario) or provincial equivalent.
- How accurate are estimated closing costs?
- Estimates vary because LTT, property tax adjustments, and CMHC PST depend on your specific province, municipality, and home price. Get a written closing-costs quote from your real estate lawyer 2-3 weeks before closing for the most accurate figure.