When purchasing a home, it’s important to plan for closing costs — the additional expenses beyond your down payment that finalize your purchase. These typically range from 1.5% to 4% of the home’s purchase price.
Typical Closing Expenses
Land Transfer Tax (LTT): A provincial tax (and, in some cities, municipal) based on the home’s purchase
price.
Legal Fees & Disbursements: Covers your lawyer’s services for title searches, document preparation,
registration, and closing adjustments.
Title Insurance: Protects both you and your lender against losses due to title defects, ownership disputes, or registration errors.
Appraisal Inspection Fees: Lenders may require an appraisal to confirm market value, and a home
inspection is highly recommended to identify potential issues.
Mortgage Default Insurance (CMHC, Sagen, or Canada Guaranty): Required if your down payment is under 20%. This premium can be added to
your mortgage balance.
Interest Adjustments: Covers mortgage interest from the closing date to your first scheduled payment.
Prepaid Expenses: Reimbursement to the seller for prepaid items such as property taxes, fuel, or
utilities.
Condo Status Certificate (if applicable): For condominium purchases, this document outlines the corporation’s
financial and legal health.
Moving & Utility Setup Costs: Professional moving services, truck rentals, deposits, or activation fees for
hydro, gas, water, or internet/cable.
Additional Possible Expenses
New Home or Pre-Construction Fees May include development levies, Tarion Warranty registration, and connection
charges.
HST on New Builds HST is typically included in the advertised price, but if you’re not eligible for the HST Rebate (e.g., for investment properties), the difference may be payable on closing.
Homeowner Information Package (for resale freeholds) Some municipalities require surveys, compliance certificates, or other documentation as part of the closing process.
