CostTotal closing costs in Canada typically run 1.5% to 4% of the purchase price, driven mostly by land transfer tax (which varies enormously by province), plus legal fees, title insurance, and a handful of smaller fixed fees.
The eight main line items
Closing costs are the one-time costs due around your closing date, separate from your down payment and ongoing mortgage payments. The main ones, roughly in order of size:
- Land transfer tax (or property transfer tax) — usually the largest single item, and the one that varies most by province
- Legal fees — your real estate lawyer's or notary's fee for handling the transaction, typically a flat fee plus disbursements
- Title insurance — a one-time premium protecting against title defects and fraud
- Home inspection — optional but strongly recommended for resale homes, paid before closing
- Appraisal fee — sometimes covered by the lender, sometimes charged to you directly
- Property tax adjustment — reimbursing the seller for prepaid property tax covering your ownership period
- PST on CMHC insurance — in Ontario, Quebec, Saskatchewan, and Manitoba, if your down payment is under 20%
- Moving costs and utility setup — often overlooked, but real
Legal fees typically break down into the lawyer's own flat fee plus disbursements — title searches, registration fees, and courier charges paid on your behalf — so ask for both numbers separately when comparing quotes.
Typical total ranges by province
Because land transfer tax dominates the total and varies so much by province, so does the overall closing cost range:
Approximate total closing costs, $600,000 home
| Alberta or Saskatchewan (no land transfer tax) | $1,500–$2,500 |
| Most other provinces | $8,000–$14,000 |
| Toronto specifically (double land transfer tax) | $15,000–$20,000 |
These are illustrative ranges, not a quote — get your exact number, including any first-time buyer rebate you qualify for, from the closing cost calculator.
How to budget for it without surprises
The most common mistake is budgeting only for the down payment and forgetting closing costs need to be available as separate cash on top of it — lenders will not finance most closing costs into your mortgage. A reasonable rule of thumb, if you haven't run your specific numbers yet, is to set aside 1.5% of the purchase price in provinces without land transfer tax, and 3–4% everywhere else, then adjust once you know your actual province and price point.
Once you've budgeted for closing costs, see what your monthly mortgage payment would look like, or check your overall affordability if you're still narrowing down a price range.