Closing Costs & Insurance
Closing Costs When Buying a House in Canada
Closing costs Canada-wide add up fast before you get the keys. See every major cost, estimated ranges clearly labelled as estimates, and when each one is due.
Closing costs Canada-wide are the one-time expenses you pay on top of the purchase price, and they usually run between 1.5% and 4% of the home's price. They include land transfer tax, legal fees, title insurance, and adjustments for prepaid property tax or utilities. The exact total depends on your province, your lender, and the property, so treat every range below as an estimate and confirm the real numbers before you remove conditions.
Start with the biggest item: transfer tax
Land transfer tax is often the largest closing cost. It is tiered in most provinces and does not exist in Alberta, Saskatchewan, Newfoundland and Labrador, Yukon, or Nunavut, where only registration fees apply. First-time buyer rebates can reduce or eliminate it in some jurisdictions.
Estimate the tax before you make an offer, because it must be paid in cash at closing and cannot be added to the mortgage. The land transfer tax guide maps the rules across all thirteen provinces and territories, and the closing costs calculator can total the items for you.
Every major closing cost, with estimated ranges
The list is long, but not every item applies to every purchase. A condominium buyer pays for status documents, a rural buyer pays for a well or septic inspection, and a buyer with a 20% down payment avoids the default insurance premium. Use the table as a checklist and delete what does not apply.
The ranges below are illustrative estimates only. They vary widely by province, firm, and property, and they are not quotes. Confirm each one with your lawyer, lender, or service provider.
| Cost | Estimated range | Notes |
|---|---|---|
| Land transfer tax or registration fee | Varies by province | Estimate with your province's calculator or ministry |
| Legal fees and disbursements | Roughly $800 to $2,000 | Higher for complex or private sales |
| Title insurance | Roughly $250 to $700 | One-time premium, based on price |
| Home inspection | Roughly $400 to $800 | Optional but strongly advised |
| Appraisal | Roughly $300 to $600 | Often lender-ordered; who pays varies |
| Default insurance premium | Percentage of the loan | Applies when down payment is under 20% |
| Property tax adjustment | Prorated share | You reimburse the seller for prepaid tax |
| Utility adjustments | Prorated share | Oil, propane, or prepaid bills |
| Status certificate or condo documents | Roughly $100 to $500 | For condominium purchases |
| Survey or certificate of location | Roughly $500 to $1,500 | Sometimes required by the lender |
| Septic or well inspection | Roughly $300 to $800 | For rural properties |
| Mortgage setup or application fee | $0 to a few hundred dollars | Many lenders waive it |
| Moving and setup costs | Varies | Not a closing cost, but budget for it |
How to estimate your total before you offer
Pull the numbers together before you write an offer, because the estimate shapes how much home you can actually afford. Start with the purchase price and the down payment, then add land transfer tax, legal fees, title insurance, and the inspection. Add a buffer for adjustments and any default insurance premium.
Revisit the estimate once your offer is accepted, because the final price, the tax, and the legal costs are all firmer at that point. If the total exceeds your available cash, you still have time to renegotiate or adjust your down payment.
If the total leaves you with no emergency cash, the home is probably out of reach at that price. A written estimate also strengthens your position, because you can move quickly and confidently when the right property appears, and you will not have to scramble for funds at the last minute.
When each cost is paid
Closing costs do not all land on the same day, and knowing the timeline helps you avoid a cash crunch.
- Before you firm up the offer: home inspection, status certificate, and any well or septic inspection.
- During financing: appraisal, and any mortgage application or setup fee.
- A few days before closing: your lawyer prepares the statement of adjustments and confirms the final figure.
- On closing day: land transfer tax, legal fees, title insurance, and adjustments are paid, and the mortgage is advanced.
- After closing: default insurance tax portion if applicable, and moving costs.
Your lawyer usually collects most of these amounts in trust and disburses them, which is why you write one large cheque or wire on closing day. Ask for the statement of adjustments a few days early, not on the day, so you can arrange a bank draft or wire. Transfers can take time to clear, and a missed deadline can delay closing.
How to reduce your closing costs
- Claim first-time buyer relief where it exists, such as the Ontario rebate, the British Columbia exemption, or the Prince Edward Island exemption.
- Compare legal fees and ask for a flat-fee quote that includes disbursements, not just the headline rate.
- Bundle title insurance with your lawyer's services to avoid duplicate charges.
- Ask your lender whether it covers the appraisal or waives the application fee, and whether a no-fee switch applies at renewal.
- Reuse an existing survey if the seller has a recent one, rather than ordering a new certificate of location.
- Review the statement of adjustments line by line and question anything that looks wrong.
What to confirm before closing day
Ask your lawyer for a written statement of adjustments a few days before closing so you know the exact amount to bring. Confirm that the land transfer tax figure reflects any rebate you qualify for, and that the title insurance policy names you and your lender correctly.
Schedule a final walkthrough before closing to confirm the home is in the agreed condition and that any repairs promised in the offer were completed. Bring the signed agreement so you can compare. If something is wrong, raise it with your lawyer immediately, because once the deal closes, your leverage is gone.
If your down payment is under 20%, the default insurance guide explains how the premium is calculated and paid. For the appraisal and inspection items in detail, see the appraisal and inspection costs guide. And for the full picture of what ownership costs after closing, the step-by-step buying guide walks through the sequence from offer to keys.
Frequently asked questions
How much are closing costs in Canada?
Closing costs typically run between 1.5% and 4% of the purchase price, according to the Financial Consumer Agency of Canada. The largest item is usually land transfer tax, where it applies, followed by legal fees and title insurance. The exact amount depends on your province and the property, so estimate early and confirm the figure with your lawyer.
Can closing costs be added to my mortgage?
Some costs can be financed, such as the default insurance premium, which is usually added to the loan balance. Most others cannot. Land transfer tax, legal fees, and adjustments must generally be paid in cash at closing, so you need the money available on closing day.
What is a statement of adjustments?
It is a document your lawyer prepares before closing that reconciles the purchase price with prepaid property taxes, utility bills, and other items split between buyer and seller. It also shows the final cash you need to bring. Ask for it a few days early so you can arrange the funds.
Are closing costs different for a new build?
Yes. New builds can involve GST or HST, which is usually included in the price but may have rebate implications, plus builder deposits, Tarion or provincial new-home warranty enrolment, and landscaping or appliance costs. Confirm the inclusions and tax treatment with your builder and lawyer before you sign.