How Much Are Closing Costs in Canada? (2026 Guide With Examples)
Closing costs in Canada run about 1.5% to 4% of the purchase price on top of your down payment. Every line item, three worked examples, and what moves it.
Budget 1.5% to 4% of the purchase price for closing costs, paid in cash on closing day and separate from your down payment. On a $700,000 home that is roughly $10,000 to $28,000. The single biggest variable is land transfer tax, which ranges from about $1,200 in Alberta to almost $29,000 in Toronto on the same price.
Lenders will not finance closing costs. If you show up with exactly the down payment and nothing else, the deal does not close. That is the thing most first-time buyers find out three weeks before their closing date, when it is far too late to fix. Do this arithmetic before you write the offer, not after.
What counts as a closing cost
Split closing costs into two piles before you try to budget them, because they behave differently. One pile is fixed by law, and no amount of shopping around changes it. The other is a market price, so get more than one quote if the total matters to you.
Set by law
- Land transfer tax, or its provincial equivalent: a deed transfer tax in Nova Scotia, a "welcome tax" in Quebec, registration fees in Alberta, Saskatchewan and Newfoundland and Labrador. Every province charges something; the amount varies more than tenfold.
- Provincial sales tax on your mortgage insurance premium, if your down payment is under 20%. The premium itself is added to the mortgage, but the PST on it is due in cash in Ontario (8%), Quebec (9%), Saskatchewan (6%) and Manitoba (7%). Buyers regularly miss this one.
- GST or HST on a newly built home, less any rebate you qualify for. Resale homes are exempt.
Market prices
- Legal fees and disbursements: typically $1,200 to $2,500 for a straightforward purchase, including title searches, registration and courier costs. Quebec uses a notary instead of a lawyer.
- Title insurance: about $300 to $600, usually arranged by your lawyer; most lenders require it.
- Home inspection: $400 to $700 for a house; condos often skip it in favour of a status certificate review ($100 to $150).
- Appraisal: $300 to $500 if your lender requires one; often waived on insured mortgages.
- Adjustments: your share of property tax, condo fees or utilities the seller has already paid past the closing date. Usually a few hundred to a couple of thousand dollars, prorated by the day.
Moving costs, new locks, and the first month's insurance premium are real expenses too, but they are not closing costs and your lawyer will not ask for them.
Three worked examples
These are computed with the same engine as the closing-cost calculator, using 2026 rates. Rules are exact; the estimate lines use mid-range defaults you can change.
Ottawa, first-time buyer, $700,000, 10% down
| Item | Amount | Rule or estimate |
|---|---|---|
| Ontario land transfer tax | $10,475 | Rule |
| First-time buyer rebate | −$4,000 | Rule |
| CMHC premium (3.10% of $630,000) | $19,530 added to mortgage | Rule |
| Ontario PST on premium (8%) | $1,562 cash | Rule |
| Legal fees and disbursements | $1,800 | Estimate |
| Title insurance | $425 | Estimate |
| Home inspection | $550 | Estimate |
| Appraisal | $400 | Estimate |
| Tax adjustment (assumed 4 months prepaid) | $780 | Estimate |
| Closing costs | $11,992 | |
| Down payment | $70,000 | |
| Cash needed on closing | $81,992 |
The rebate wipes out a third of the tax, and the PST line is the one nobody warns you about.
Calgary, repeat buyer, $500,000, 10% down
| Item | Amount | Rule or estimate |
|---|---|---|
| Alberta land title fee (transfer) | $550 | Rule |
| Alberta mortgage registration fee (on the insured mortgage of $463,950) | $515 | Rule |
| CMHC premium (3.10% of $450,000) | $13,950 added to mortgage | Rule |
| PST on premium | $0 (Alberta has no PST) | Rule |
| Legal fees | $1,600 | Estimate |
| Title insurance and inspection | $975 | Estimate |
| Appraisal | $400 | Estimate |
| Tax adjustment | $780 | Estimate |
| Closing costs | $4,820 | |
| Cash needed on closing | $54,820 |
Alberta's fees scale with price (they are not the flat "$400" some sites still quote), but they stay in the low four figures even on expensive homes. The mortgage fee is calculated on the amount registered, which includes the insurance premium.
Vancouver, repeat buyer, $900,000, 20% down
| Item | Amount | Rule or estimate |
|---|---|---|
| BC property transfer tax | $16,000 | Rule |
| CMHC premium | $0 (20% down) | Rule |
| Legal fees | $1,500 | Estimate |
| Title insurance and inspection | $975 | Estimate |
| Appraisal | $400 | Estimate |
| Tax adjustment | $780 | Estimate |
| Closing costs | $19,655 | |
| Cash needed on closing | $199,655 |
At 20% down there is no insurance and no PST, so the tax is nearly the whole bill. A first-time buyer gets no relief here either, since BC's exemption tops out at $860,000, well under this price.
Land transfer tax is the number to check first
On the same $600,000 purchase, here is what the transfer tax or fee comes to across the country (2026 schedules, repeat buyer):
| Province | Tax or fee on $600,000 |
|---|---|
| Toronto (provincial + municipal) | $16,950 |
| British Columbia | $10,000 |
| Manitoba | $9,778 |
| Nova Scotia (Halifax rate, 1.5%) | $9,000 |
| Ontario outside Toronto | $8,475 |
| Quebec outside Montréal | $7,111 |
| New Brunswick | $6,000 |
| Prince Edward Island | $6,000 (first-time buyers exempt) |
| Newfoundland and Labrador (deed + mortgage registration) | $4,516 |
| Saskatchewan (title + mortgage fees) | $2,675 |
| Alberta (title + mortgage fees) | $1,180 |
Source: provincial and municipal schedules linked below; computed with a $480,000 mortgage where registration fees depend on the loan. Full detail in Land transfer tax by province.
What changes the number
- First-time buyer status. Ontario refunds up to $4,000 (Toronto adds up to $4,475 more). BC exempts the first $500,000 on homes up to $835,000. PEI exempts qualified first-time buyers entirely. Nobody else offers a land transfer rebate.
- Down payment under 20%. Adds the insurance premium to the mortgage and, in four provinces, PST on it in cash.
- New construction. GST or HST applies. First-time buyers can now recover 100% of the federal GST on a new home up to $1 million, phasing out at $1.5 million.
- Municipality. Toronto and Montréal have their own schedules on top of or instead of the provincial one. Nova Scotia's rate is set by each municipality, from 0% to 1.5%.
- Condo vs house. Trade the inspection for a status certificate; expect an adjustment for prepaid condo fees.
Who this covers
This is for a standard resale or new-construction purchase financed with a mortgage, bought as an individual or joint buyers, in your own name. It assumes a typical closing: no power-of-sale, no private or seller financing, no co-ownership structure with unequal shares, no commercial or multi-unit property. Outside that, don't trust this number. Those situations change enough of the math that it won't be close.
What this doesn't include
- Moving costs, new locks, and the first month's insurance premium. Real expenses, but not part of the closing-cost calculation, and your lawyer won't collect them on closing day.
- The actual Statement of Adjustments your lawyer or notary produces. This is a planning estimate; theirs is the number you sign for, and it can differ by a few hundred dollars once real prorations are calculated.
- A specific lender's appraisal fee or legal-requirement overlays, which vary by lender and by file, not just by province.
- New-construction extras written into a specific builder's purchase agreement: Tarion warranty enrolment in Ontario, development-charge pass-throughs, or other builder-specific closing adjustments.
- A penalty for breaking an existing mortgage, if this purchase means selling and buying at the same time. See Breaking your mortgage for that separately.
What to confirm before you sign
- Once you have an accepted offer, ask your lawyer or notary for a real trust-ledger estimate. The calculator's estimate lines (legal fees, title insurance, inspection, adjustments) are typical figures, not your actual quote.
- Ask your lender whether an appraisal is required on your specific file; it's often waived on insured mortgages but never guaranteed.
- If you're under 20% down, confirm the exact PST-on-premium amount with your lender before closing. It's cash due at closing, not something you can roll into the mortgage.
- Buying new construction? Ask the builder for the exact HST treatment and any warranty enrolment fee written into your purchase agreement, since those aren't standardized across builders.
Frequently asked questions
What percentage of the purchase price are closing costs in Canada?
About 1.5% to 4%. The low end is Alberta or Saskatchewan with 20% down; the high end is Toronto with an insured mortgage. Land transfer tax explains most of the spread.
Can closing costs be included in the mortgage?
No. Lenders finance the purchase price only. The one exception is the mortgage insurance premium, which is added to the loan. Everything else is cash on closing day.
When are closing costs paid?
Your lawyer or notary collects them a day or two before closing, usually by bank draft or wire, along with the balance of your down payment. Quebec's welcome tax is the exception: the municipality bills it two to three months after closing.
Are closing costs the same for a condo?
The taxes are identical. You will usually skip the inspection, pay for a status certificate review instead, and see an adjustment for the seller's prepaid condo fees.
Do closing costs differ for new builds?
Yes. Add GST or HST (less rebates), possible development-charge pass-throughs in the purchase agreement, and Tarion or provincial warranty enrolment fees in Ontario.
Sources
- Ontario Ministry of Finance, Land Transfer Tax — checked 14 Sept 2026
- City of Toronto, Municipal Land Transfer Tax rates (effective 1 April 2026) — checked 14 Sept 2026
- Government of British Columbia, Property Transfer Tax and first-time home buyers' exemption — checked 14 Sept 2026
- Government of Alberta, Land Titles fee schedule — checked 14 Sept 2026
- Information Services Corporation (Saskatchewan), land titles fees — checked 14 Sept 2026
- Gouvernement du Québec, Droits sur les mutations immobilières 2026 — checked 14 Sept 2026
- CMHC, mortgage loan insurance premiums — checked 14 Sept 2026
- Financial Consumer Agency of Canada, minimum down payment rules — checked 14 Sept 2026
- Department of Finance Canada, First-Time Home Buyers' GST Rebate — checked 14 Sept 2026
This guide is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage 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.