Closing Costs Calculator

Closing Costs When Buying a Home in Canada

Closing costs are the expenses you pay on top of the purchase price when completing a real estate transaction. In Canada, total closing costs typically range from 1.5% to 4% of the home’s purchase price, depending on your province and whether you are a first-time buyer. The single largest component is usually land transfer tax, which varies dramatically by province — from essentially zero in Alberta and Saskatchewan to over $30,000 on a million-dollar home in Toronto (where both provincial and municipal LTT apply). Buyers should budget for closing costs separately from their down payment.

Legal fees for a residential purchase typically run $1,200 to $2,500 and cover title searches, document preparation, registration, and the lawyer’s trust account handling. Title insurance ($250–$500) protects against title defects, liens, or encroachments and is required by most lenders. A home inspection ($400–$600) is optional but strongly recommended. Other costs include the appraisal fee ($300–$500, sometimes covered by the lender), property tax and utility adjustments on closing day, and moving expenses. If you are purchasing a new-build condo, development charges, HST on the purchase, and Tarion warranty enrolment fees may also apply.

Typical Closing Costs on a $600,000 Home (Ontario, non-Toronto)

First-time buyers can reduce costs through provincial LTT rebates (up to $4,000 in Ontario, up to $4,475 for Toronto MLTT) and the federal Home Buyers’ Tax Credit ($1,500). Some lenders also offer cashback mortgages that cover a portion of closing costs, though these typically come with a slightly higher interest rate. Always request a detailed statement of adjustments from your lawyer before closing so you know exactly what you owe. Surprises on closing day are stressful and avoidable with proper planning.