Mortgages
Closing Costs When Buying a Home in Canada
What closing costs are, how much to budget, and which programs can lower them for first-time buyers.
What are closing costs?
One-time costs you pay when you buy a home, separate from your down payment.
They include legal fees, a home inspection, title insurance, property tax adjustments and, in most provinces, land transfer tax. In Ontario, Quebec and Saskatchewan, provincial sales tax on any CMHC premium is also due at closing.
Put it into practiceMortgage payment calculatorHow much should I budget?
FCAC suggests 1.5% to 4% of the price. Land transfer tax rates vary a lot by province and city, so check yours.
| Home price | 1.5% of price | 4% of price |
|---|---|---|
| Top$500,000 | $7,500 | $20,000 |
| $750,000 | $11,250 | $30,000 |
| $1,000,000 | $15,000 | $40,000 |
Can I lower my closing costs?
First-time buyers can get land transfer tax rebates in several provinces and some cities, and the first-time buyers’ GST rebate on new homes.
Compare legal fees, and ask whether the lender covers appraisal or other fees. Don’t skip the inspection to save money; problems found later can cost far more.
How do I plan for them?
Save for closing costs separately from your down payment, and set the money aside before you make an offer.
Ask your lawyer or notary for an estimate early, including land transfer tax and any adjustments, so closing day has no surprises.
Keep reading
MortgagesFirst-Time Home Buyer Programs in CanadaThe federal programs that help first-time buyers: the FHSA, the Home Buyers’ Plan, the home buyers’ amount, the GST rebate on new homes and 30-year amortizations.
MortgagesDown Payments and CMHC Mortgage Insurance in CanadaThe minimum down payment for any price, what CMHC insurance costs with less than 20% down, and where your down payment can come from.
MortgagesHow a Home Equity Line of Credit (HELOC) Works in CanadaA HELOC lets you borrow against your home up to 65% of its value, at a variable rate usually lower than other credit. How much you can borrow, the costs, and the risks of using your home as security.- MortgagesHow Mortgages Work in CanadaWhat a mortgage is, the difference between term and amortization, how payments are calculated and what else you pay when you buy.
Official sources and further reading
- FCAC: Buying a home ↗
- CMHC: Mortgage loan insurance premiums ↗
- CRA: First-time home buyers' GST/HST rebate ↗
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value