Closing Costs

The purchase price is what the seller gets. Closing costs are what everyone else gets: the province, the city, your lawyer or notary, the title insurer, the inspector, and — with less than 20% down — the sales tax on your mortgage insurance premium. This calculator adds those line items into one cash-on-closing total, so the number at the bottom looks like the bank draft your lawyer requests before handing over the keys.

What it answers, and what it doesn't

It answers: how much cash you need on closing day beyond your down payment and deposit, and which line items drive that total under your province's rules.

It does not answer: your lawyer's actual quote (ranges here are planning estimates), your property tax and utility adjustments (those depend on the seller's prepaid bills and the closing date), or anything paid outside the lawyer's trust account. Moving costs, new locks, furniture, and the first month's home insurance are real expenses but not closing costs. The lawyer never collects them.

Every input, explained

Purchase price. Enter the price on the agreement of purchase and sale, not the list price. The common error is using the MLS list price after negotiating down — tax brackets apply to what you actually pay.

Province, and city where asked. Land transfer tax is provincial, except in Toronto, where a municipal tax stacks on top of the provincial one, and Montréal, which runs its own seven-bracket schedule. Selecting "Ontario" for a Toronto purchase understates the tax by half.

First-time buyer. Only Ontario, Toronto, BC, and PEI offer relief. Each defines first-time as never having owned a home anywhere in the world — stricter than the federal four-year test behind the FHSA and HBP. Claiming it after owning abroad is a mistake the province can unwind.

Mortgage amount and down payment. These determine the insurance premium tax. With less than 20% down, the premium itself is added to your mortgage, but the provincial sales tax on it — 8% Ontario, 9% Quebec, 6% Saskatchewan, 7% Manitoba — is cash on closing. On a $13,950 premium in Ontario, that is $1,116 you cannot roll into the loan. This is the line item buyers forget most.

Legal fees and disbursements. Budget $1,200–$2,500; Quebec uses a notary instead of a lawyer. A quoted "legal fee" is rarely all-in — title searches, registrations, and courier fees sit on top as disbursements.

Home inspection. Budget $400–$700; for a condo, a status certificate review runs $100–$150. Skipping a $500 inspection on a $600,000 purchase is arithmetic most buyers regret.

Title insurance. Budget $300–$600. Most lenders require it, so treat it as mandatory unless yours says otherwise.

Newly built home. Toggle this on with fewer than 20% down and it unlocks the 30-year insured amortization alongside first-time buyer status — it doesn't change the tax or fee lines by itself, only whether the 30-year option (and its 0.20% premium surcharge) is available to you.

Interest rate and amortization. These don't change your closing-day cash total — they drive the "monthly mortgage payment" line the calculator shows alongside it, so you can see the payment that goes with the mortgage you're about to close on. 30 years is only selectable if you've ticked first-time buyer or newly built home; picking it without either still prices the premium on the 25-year schedule, without the surcharge.

How the math works

The calculator runs the price through your province's marginal transfer brackets (only the slice inside each bracket pays that bracket's rate, like income tax), adds the municipal layer where one exists, subtracts first-time relief, then adds the premium tax and the five fixed planning-estimate lines: legal fees, title insurance, inspection, appraisal, and tax/utility adjustments. The total is an estimate built from line items — so you can see which input moves it most.

Worked example: $600,000 purchase in Calgary, 20% down

Alberta has no land transfer tax; it charges title fees instead.

Transfer registration: $50 + $5 per $5,000 of price → $50 + ($5 × 120) = $650.
Mortgage registration: same formula on the $480,000 mortgage → $50 + ($5 × 96) = $530.
Government fees total: $1,180.
Legal fees and disbursements: $1,800 (planning estimate).
Title insurance: $450 (planning estimate).
Home inspection: $550 (planning estimate).
Appraisal: $400 (planning estimate).
Tax / utility adjustments: $750 (planning estimate).
Premium tax: $0 — no premium at 20% down, and Alberta does not tax premiums anyway.

Total: $650 + $530 + $1,800 + $450 + $550 + $400 + $750 = $5,130, about 0.9% of the price — well under the usual 1.5%–4% budgeting rule. Two honest reasons: Alberta's government fees are the lowest in Canada, and 20% down removes the premium and its tax entirely. Cash to close (the $120,000 down payment plus this $5,130) comes to $125,130. The same $600,000 in Toronto with 10% down carries $16,950 in land transfer tax alone.

Provincial quirks and edge cases

Quebec's welcome tax arrives late. The droit de mutation is billed by the municipality two to three months after closing and does not pass through the notary. Budget for it separately or the bill feels like an ambush.

Toronto buyers pay twice. Municipal tax mirrors the provincial one, doubling the bill — and Toronto's municipal brackets steepen above $3 million (4.40% to 8.60% since April 2026).

Newfoundland and Labrador double-dips. The registration fee ($100 plus $0.40 per $100 over $500, capped at $5,000) is charged on the deed and again on the mortgage.

The premium tax hits four provinces. Ontario 8%, Quebec 9%, Saskatchewan 6%, Manitoba 7%. BC, Alberta, and the Atlantic provinces do not tax the premium.

Insurers demand proof of 1.5%. On top of the down payment, you must show closing costs of at least 1.5% of the price. Budgeting exactly 1.5% is the floor, not the target.

Questions to ask your lawyer or notary

What are your exact disbursements on top of the quoted legal fee, and which are fixed versus estimates?
What property tax, utility, and condo-fee adjustments do you expect from the seller's side?
Does my lender require title insurance, and is it inside your quote or listed separately?
(Quebec) When will the municipality bill the welcome tax, and how much should I set aside?
With less than 20% down, is the PST on the insurance premium included in your closing figure?

Frequently asked questions

Is the down payment part of closing costs?

No. The down payment goes toward the price; closing costs are the taxes and fees to complete the deal. That is why a "5% down" purchase really needs 6.5% or more in liquid funds.

Can I roll closing costs into the mortgage?

Mostly no. Land transfer tax, legal fees, and the premium tax are cash. The insurance premium itself is the exception — it is added to the mortgage principal.

Do first-time buyer programs cut closing costs?

Only the land transfer relief in Ontario, Toronto, BC, and PEI — sometimes to zero. Legal fees, inspection, and title insurance cost the same for everyone.

Why is my friend's closing bill so different?

Province is the biggest variable: $1,180 in Alberta fees versus $16,950 in Toronto tax on the same $600,000 price. Down payment size is second: under 20% adds the premium and, in four provinces, its tax.

Should I budget the full 4%?

The 1.5%–4% range is a cushion. Alberta and Saskatchewan land near the bottom; Toronto and Vancouver-area purchases with small down payments land near the top. Use the line items once you know your province.

Rules and rates as of September 2026. This is general information for Canadian home buyers and sellers, not financial, legal, or tax advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.