Canada Closing Costs Calculator
Create a more accurate home buying budget by estimating your closing costs — the one-time, upfront expenses you'll pay before receiving the keys.When using our closing costs calculator, be sure to specify the province in which you expect to buy a home, so we can accurately estimate the amount of land transfer tax you might have to pay.
8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
How much are closing costs?
Exact costs vary, but it’s generally best to have 3% to 5% of a home’s purchase price on hand at closing. Your down payment can also be considered a closing cost, but it is not included in that 3-5% figure.
What are closing costs when buying a house?
Closing costs are the one-time, up front charges you pay before taking possession of a recently purchased home. They are not included in your mortgage costs.
The closing costs you’re required to pay depend on several factors, including the type and price of the property you buy, your down payment amount and where your home is located.
How do you calculate closing costs?
“Closing costs” is an umbrella term that includes all the fees you’re expected to pay on the day you close on your home. To find it, you just add up all the costs. It may sound easy, but it can be challenging if you don’t know which costs to include.
Common closing costs
Land transfer taxes
Cost: Generally 1–2% of home’s value. The amount varies by location. Some high value homes face higher tax rates.
Details: Each province charges some form of land transfer tax when property changes hands. It might be called a “land transfer fee”, a “property transfer tax”, or a “deed transfer tax.” It’s going to cost you no matter what your province chooses to call it.
» MORE: Use our Land Transfer Tax & Fee calculator to estimate how much you'll owe
Legal fees
Cost: Several hundred dollars — much more if your lawyer covers the cost of add-ons like title insurance and bakes it into their fees.
Details: Hiring a real estate lawyer is an inevitability when buying a home. You’ll have to pay your legal fees in full before the home purchase can be completed.The exact cost depends on the going rate for lawyers in your community.
Home appraisal fee
Cost: $300–$500
Details: An independent, third-party review of your home’s value. Lenders usually require this before signing off on your mortgage. A home appraisal establishes that the home you’re buying is worth the offer you made.
Moving costs
Cost: Renting a truck for a local move could cost around $100, plus tax and insurance. Expect to pay a few thousand for long-distance moves or if you plan to hire people to load, drive and unload.
Details: While not strictly a closing cost, moving costs also have to be built into your budget. The cost depends on how many items you’re moving, how far you’re trucking them and how much of that work you plan to do yourself. Get a quote from a reliable, licensed mover to ensure you set enough cash aside.
Possible closing costs
Home inspection
Cost: Between $400–$700.
Details: Home inspections aren’t mandatory, but getting one can uncover hidden defects that a seller either didn’t disclose or wasn’t aware of.Size, age and location of the home can affect cost.
Estoppel certificate fee
Cost: A few hundred dollars.
Details: This is a fee your lawyer will require if you’re buying a condo or strata unit outside of Quebec. An estoppel certificate confirms important details about a condo unit, including any outstanding fees that you might be responsible for.
Provincial sales tax on mortgage default insurance (Saskatchewan, Ontario and Quebec)
Cost: 6%-9% of insurance premium.
Details: If you buy a home with a down payment below 20% of the purchase price, you’ll be required to buy mortgage default insurance. You’ll also have to pay provincial sales tax on your insurance premium in Saskatchewan (6%), Ontario (8%) and Quebec (9%).
If you have the cash handy, you can treat your entire mortgage default insurance premium as a closing cost and pay it off up front. That’ll prevent it from being added to your mortgage and costing you more in interest charges.
GST/HST on new construction
Cost: 5% and up
Details: Unless it’s included in your builder’s sale price, you may have to pay goods and services tax (GST) or harmonized sales tax (HST) on the cost of your newly constructed home at closing. Tax rebates are available if you meet certain requirements.
Land survey fee
Cost: Thousands
Details: Land surveys aren’t as common as home inspections, but your lender may require you to get one to confirm a property’s boundaries or other factors that could impact its value. The total cost depends on the size of your lot, the reason for your survey and how labour- and research-intensive the survey is.
Property taxes
Cost: Hundreds to thousands of dollars.
Details: It’s unlikely that you’ll have to pay property taxes at closing. But if the previous owner paid the property tax for the entire year and needs to be reimbursed for the time you’ll be living in the house, you’ll be the one squaring things up. Tax rate, home value and amount of time all affect total cost.
Home insurance
Cost: Around $100 per month.
Details: Your lender will require home insurance to be in place before you can close. Depending on your insurance provider, you may have to make a lump-sum payment before coverage begins.
Find the Best Mortgage Rates in Canada
Compare customized mortgage rates from Canada’s best lenders and brokers for free.Who pays closing costs?
Buyers typically pay most, if not all closing costs when buying a house in Canada.
Closing costs are usually paid to your lawyer, who is responsible for disbursing them.
There are some instances where a motivated seller might agree to pay some of a buyer’s closing costs, or where a lender agrees to pay for a home appraisal. It never hurts to discuss these possibilities with your real estate agent or mortgage broker.
Why do closing costs vary?
Closing costs can vary for several reasons, mainly because of location and property type.
Each province levies its own tax on property transfers. These taxes can range from hundreds of dollars in some provinces to thousands of dollars in others. You’ll pay both a provincial and a municipal land transfer tax if you buy a home in Toronto.
The property you buy also plays a significant role in your closing costs. A larger property could require a more expensive appraisal, and its higher sale price would likely result in more expensive land transfer taxes.
Tips for reducing closing costs
Closing costs are inevitable, but there are ways you can try to make them more affordable, such as:
Making a down payment of at least 20%. You won’t have any mortgage default insurance premiums to pay tax on.
Negotiating with the seller. If a seller is particularly motivated, they might agree to pay some of your closing costs.
Comparing lawyers. Don’t start working with the first real estate lawyer you call. Find out what a few different lawyers charge, both by the hour and for carrying out different tasks.
If you’re worried that closing costs might add up to more than you can afford, consider using the Home Buyers’ Plan (HBP), which allows you to borrow up to $35,000 from your RRSP to put toward a home purchase. These funds don’t need to be put toward a down payment. You can use them for closing costs, too.
Closing costs vary based on many factors, but you’ll generally want to set aside 3% to 5% of a home’s purchase price to cover all potential closing costs. On a $400,000 home purchase, for example, the closing costs could range from $6,000 to $20,000.
Can you negotiate closing costs?
In some cases, you might be able to negotiate your closing costs so the seller or lender assumes certain expenses. A seller might, for example, agree to pay for a home inspection. A lender might pick up the tab for an appraisal.
DIVE EVEN DEEPER
Clay Jarvis
Clay Jarvis
Clay Jarvis