How much are closing costs in Canada?
Budget 1.5% to 4% of the purchase price beyond your down payment. On a $500,000 home, expect $7,500 to $20,000 in closing costs — land transfer tax is usually the largest line item. First-time buyer rebates in Ontario, BC, and other provinces can reduce this significantly.
- Legal fees: typically $1,500 to $2,500
- Ontario LTT on $500K home: roughly $6,475 provincial (+ Toronto municipal)
- Land transfer tax cannot be added to your mortgage
Source: Government of Ontario
Estimate your closing costs
Closing costs typically add 1.5% - 4% on top of your purchase price. Know exactly what to budget for before you buy.
Used to calculate CMHC insurance PST
Estimated Closing Costs
$13,249
2.6% of purchase price
Total Cash Needed
Down payment ($50,000) + closing costs ($13,249) + $5,000 emergency buffer
$68,249
8% Ontario PST on CMHC premium
Estimated prepaid property taxes (half-year)
Interest from closing to first payment date (~15 days)
Verify your closing cost budget with a free review
Our licensed mortgage team can confirm your closing cost estimate and help you plan for closing day.
What Are Closing Costs in Canada?
From land transfer tax to legal fees, understand every expense you'll face on closing day beyond your down payment.
1.5%–4%
Of purchase price
Typical closing cost range
$6,475
Ontario LTT on $500K
Land transfer tax example
$1,500–$2,500
Legal fees
Lawyer or notary costs
Land Transfer Tax
Land transfer tax is usually the single largest closing cost. Every province except Alberta and Saskatchewan charges a tax when property changes hands, and rates vary significantly. In Ontario, the tax is tiered: 0.5% on the first $55,000, 1% on $55,001 to $250,000, 1.5% on $250,001 to $400,000, and 2% on $400,001 to $2,000,000. On a $500,000 home in Ontario, you would pay approximately $6,475.
Toronto buyers face an additional municipal land transfer tax at matching rates, effectively doubling the bill. In British Columbia, the property transfer tax runs from 1% on the first $200,000 up to 5% on amounts over $3,000,000. Alberta charges only a modest registration fee of roughly $400. See the Ontario LTT and BC PTT pages for full details.
Legal Fees and Title Insurance
You are required to have a real estate lawyer (or notary in BC and Quebec) handle the closing of your purchase. Legal fees typically range from $1,500 to $2,500 and cover the review of your purchase agreement, title search, mortgage registration, and the transfer of funds.
Title insurance is a one-time premium of $250 to $500 that protects you and your lender against title defects, fraud, and encroachment issues. Most lenders require title insurance as a condition of funding your mortgage.
Other Common Closing Costs
Beyond the major items, several smaller costs add up quickly. A home inspection costs $400 to $600 and is strongly recommended even though it is not legally required. An appraisal, if your lender orders one, runs $300 to $500. Property tax adjustments reimburse the seller for any taxes they have prepaid beyond the closing date. Utility adjustments work the same way for water and sewer charges. Moving costs, immediate repairs, and utility hookup fees should also be part of your budget.
First-Time Buyer Rebates
Most provinces offer land transfer tax relief for first-time buyers. In Ontario, you can receive a rebate of up to $4,000 on the provincial land transfer tax, which fully covers the tax on homes up to $368,000. In Toronto, first-time buyers also receive an additional rebate of up to $4,475 on the municipal land transfer tax.
In British Columbia, first-time buyers are fully exempt from the property transfer tax on homes priced at $500,000 or less, with a partial exemption on homes up to $835,000. See the BC PTT page for full details.
Frequently Asked Questions
No surprises at closing
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Closing Costs Calculator for Ontario
Ontario's tiered land transfer tax is the biggest closing cost for most buyers. First-time buyers can claim a rebate of up to $4,000 on provincial LTT. See our Ontario programs guide and land transfer tax deep dive for rebate eligibility and worked examples.
Toronto Land Transfer Tax for First-Time Buyers
Toronto charges a municipal land transfer tax (MLTT) at the same tiered rates as the province — effectively doubling LTT on Toronto purchases. First-time buyers can receive up to $4,475 in municipal rebate on top of the provincial $4,000 rebate. This calculator includes both taxes and applicable rebates.
Learn more
- Read our closing costs overview to understand why these costs surprise so many first-time buyers.
- See a detailed cost breakdown of every fee you should plan for, from legal fees to utility adjustments.
- Learn how land transfer tax is calculated in your province — usually your single largest closing cost.