Module 7: Closing the Deal
2 min readYour offer has been accepted, your conditions are fulfilled, and the deal is firm. Now comes the final phase: closing. This is where the financial, legal, and administrative details come together — and where first-time buyers are often caught off guard by costs they did not anticipate.
Most financial advisors recommend budgeting 3-5% of the purchase price for closing costs. On a $500,000 home, that means $15,000 to $25,000 in additional cash beyond your down payment. If you have been saving in a TFSA, those tax-free withdrawals can be an excellent source for covering these expenses.
What This Module Covers
Section titled “What This Module Covers”What closing costs are, why they surprise so many first-time buyers, and how to prepare for them.
Every cost you should plan for: legal fees ($1,500-$2,500), title insurance ($250-$500), home appraisal ($300-$500), property tax adjustments, utility adjustments, moving costs, and immediate home setup expenses. If your down payment is less than 20%, remember that CMHC insurance premiums are added to your mortgage — and in some provinces, PST on that insurance premium is due at closing.
Usually your single largest closing cost. Detailed rate tables for Ontario, BC, Quebec, Manitoba, and other provinces. Don’t forget to check Module 4: Government Programs for first-time buyer rebates that can significantly reduce this cost.
What your lawyer does behind the scenes: title search, mortgage documentation, closing adjustments, land transfer tax remittance, and key release authorization.
One of the best-value protections for homeowners. What it covers (title fraud, errors in records, unknown liens), owner’s vs. lender’s policy, and why you should not skip it.
What happens 1-2 weeks before, 2-3 days before, the morning of, and the afternoon of closing day. What can go wrong and what to do if closing is delayed.
A real worked example for a $500,000 home in Ontario, with a complete checklist of every cost item.
Quick Reference: Closing Cost Estimate
Section titled “Quick Reference: Closing Cost Estimate”| Item | Typical Cost |
|---|---|
| Land transfer tax (varies by province) | $2,000 - $15,000+ |
| Legal fees & disbursements | $1,500 - $2,500 |
| Title insurance | $250 - $500 |
| Home appraisal | $300 - $500 |
| Property tax adjustment | $500 - $3,000 |
| Moving costs | $500 - $5,000 |
| Lock changes & immediate setup | $500 - $2,000 |
Use our Closing Cost Calculator to estimate your full costs including CMHC insurance and land transfer tax. Once closing is complete, head to Module 8: Life After Closing to prepare for the ongoing costs of homeownership.
Next: Closing Costs Overview