Closing Costs

Costs & Calculators


Closing Costs

As a buyer, when closing the transaction of the purchased property, you will incur additional costs over and above the purchased price. Here is a guide of what to expect:


Appraisal Fee:

A lender requires an appraisal to provide the market value of the property. Cost may vary from $100 to $300.

Closing Adjustments:

These costs are bills that the seller has prepaid such as utility, property taxes, others. Your lawyer will inform you of the costs

Home & Fire Insurance:

You are required to obtain home insurance. Lenders will require a certificate of fire insurance prior to you taking possession of your property. Cost may vary from $300 to $700.

Home Inspection Fee:

Most buyers for their benefit will have a home inspection as a condition of purchasing. Cost may vary from $300 to $400.

Land transfer Tax:

Land transfer tax payable by the purchaser will vary from cities and provinces. Cost of the land transfer tax is based on the purchase price. Note: first time home buyers may be entitled to a refund.

Legal Fees & Disbursements:

Notaries, lawyers, charges for their srevices such as drafting the title deed, searches, registrations, etc.

New Home Warranty Program:

If you are purchasing a new home, it most likely will be covered under the New Home Warranty Program. The cost of the warranty is approximately $600. For more information visit

Provincial Sales Tax and Mortgage Insurance:

If your mortgage is insured under CMHC or Genworth Financial, you will be required to pay the applicable tax on the insurance premium on closing.

Survey or Title Insurance Fees:

Lenders require an up-to-date survey of the property or title insurance documentation. Cost will vary from $600 to $900.


Harmonized Sales Tax applies to newly constructed homes and vacant land. On newly constructed homes, who pays? You or the builder? If the builder include the cost of this tax in the purchase price you do not have to pay at closing. Most sales of vacant land by individuals are exempt. However, there are situations when sales of land by individuals may be taxable. For more information please visit Canada Revenue Agency,


According to Canadian Mortgage and Housing Corporation you should put aside between 1.5% to 2.5% of the purchase price of the property for closing costs. The above estimated closing costs are not necessarily a guaranteed since each closing situation differs.