The Ultimate Closing Costs Guide for Canadians: Everything You Need to Know

Imagine you’ve found your dream home in Canada—exciting, right? But before you can move in, there’s one last hurdle: closing costs. These are the fees and extra payments you’ll face before you finally get your keys. In this easy-to-read guide, we’ll show you exactly what these costs are, how they’re calculated, and how to budget for them. By the end, you’ll feel prepared and confident when that big day arrives!

On this Page

Introduction: Why Closing Costs in Canada Matter

When you buy a home, you probably expect to pay for the house itself and maybe a down payment. But many people forget about closing costs in Canada, which can add up to thousands of dollars. These fees cover things like legal help, taxes, and even your home inspection. If you’re not ready, you could end up short on cash at the last moment.

What You’ll Learn

  1. Key Closing Costs Explained: We’ll go through each major cost, like land transfer taxes and legal fees.
  2. Real-World Examples: How these costs look in different situations—especially for first-time homebuyer tips.
  3. Ways to Save & Prepare: Practical advice to help you keep costs low and avoid surprises.
  4. FAQ: We’ll answer the most common questions about closing costs.

Let’s dive in, step by step, so you can feel calm and in control when you purchase your new place.

Section 1 – What Are Closing Costs in Canada?

Closing costs are the extra fees and charges you pay when the sale of a home becomes final. These costs go on top of your home’s purchase price. For most people, closing costs can total anywhere from 1% to 4% of the home price—though it can be higher in certain provinces or if your home is more expensive.

Learm More:

Section 2 – Land Transfer Tax: The Biggest Surprise for Many

What Is Land Transfer Tax?

In many parts of Canada, the government charges a land transfer tax (LTT) or a similar fee when property ownership changes hands. This tax often varies by province (and sometimes by city), so the exact percentage or formula depends on your location.

Real-World Example

If you buy a $400,000 home in Ontario, you might pay around $4,475 in land transfer tax. First-time buyers in Ontario can get a rebate of up to $4,000, which covers most (but maybe not all) of that. So it pays to see if you qualify for first-time homebuyer incentives.

Not sure if your province charges land transfer tax or how much? Check your provincial site or talk to us at Genesis Group for up-to-date rules.

Section 3 – Mortgage Default Insurance (CMHC Insurance)

Why Do I Need This?

If you have a down payment under 20%, your mortgage is called “high-ratio,” meaning you borrow more compared to your home’s value. Canadian rules say you must get mortgage default insurance—often from CMHC (Canada Mortgage and Housing Corporation). This insurance protects your lender if you fail to pay back your loan.

Does This Count as a Closing Cost?

Technically, CMHC insurance is usually added to your mortgage principal, so you pay it off over time. But some lenders might charge you a lump sum at closing. Make sure you clarify how your lender handles it. If you pay it up front, it definitely becomes part of your closing costs.

Learn More: high-ratio mortgage

Section 4 – Legal Fees: Paying Your Lawyer or Notary

What They Do

You’ll need a real estate lawyer or notary to handle the final paperwork, like transferring the property title into your name and reviewing the mortgage documents. They make sure you’re not buying a house that has hidden legal issues, such as existing liens.

Cost Range

Legal fees typically run from about $500 to $1,500, plus taxes and “disbursements” (small charges for office or registration tasks). This might sound like a lot, but skipping it could be risky—buying a home without proper legal checks can lead to huge problems later.

Section 5 – Property Appraisal: Confirming the Home’s Value

Why It Matters

An appraisal is a professional opinion of how much the property is worth. Mortgage lenders often require it to confirm they’re not lending you more money than the home’s actual value.

Typical Fee

Expect to pay around $300 to $500 for an appraisal in Canada. Some lenders pay this cost themselves; others pass it on to you at closing. Check your lender’s policy so you’re not caught off-guard.

Think your home might appraise high enough to get a bigger mortgage? Use our Mortgage Affordability Calculator to see how that might change your monthly payments.

Section 6 – Home Inspection: Avoiding Costly Surprises

Why You Need It

A home inspection is an expert check-up of a property’s condition—looking at everything from the roof to the basement. While not required by law, it’s strongly recommended so you don’t end up with big repair bills later.

Price Range

A typical inspection can cost $400 to $700, depending on the home’s size and location. It’s a small price to pay for peace of mind—no one wants to discover a leaky roof right after they move in!

Section 7 – Title Insurance: Protecting Against Title Issues

The Basics

Title insurance protects you (and sometimes your lender) if there’s a problem with the property’s title—like hidden liens, fraud, or boundary disputes. Some provinces or lenders make it mandatory; others do not.

Cost Range

$250 to $400 is typical. It’s usually a one-time payment at closing, and it can save you thousands of dollars if a title problem pops up in the future.

Section 8 – Property Tax & Utility Adjustments

How These Work

If the seller prepaid certain expenses (like property taxes, water bills, or heating fuel) beyond the closing date, you owe them back for those days. The lawyer or notary calculates these amounts, and you pay them at closing.

Example

Say the seller paid the full year’s property tax but you’re taking possession halfway through the year. You’ll likely refund the seller the half they already covered. The exact figure depends on your location’s tax rates and the precise closing date.

Section 9 – Moving Expenses & Misc. Costs

Moving Costs

Whether you hire professional movers or rent a truck, you can spend hundreds or even thousands. Plan ahead—especially if you’re moving long distances or have lots of heavy furniture.

Other Possible Fees

  • Survey Fee: If you need a current survey, that could be $800+.
  • Mortgage Broker Fee: Some brokers charge a fee, though many do not if they receive payment from the lender.
  • Condo Fees: If your new home is a condo, you might pay an adjustment for monthly maintenance if the seller has pre-paid it.

Unsure which fees apply to your situation? Contact Our Team at Genesis Group for a quick consult!

Section 10 – How Much Should You Budget for Closing Costs?

A good rule of thumb is to set aside 1% to 4% of the home’s price for closing fees. For a $500,000 home, that could be anywhere from $5,000 to $20,000. In higher-priced areas or provinces with bigger land transfer taxes, aim for the higher side.

Ways to Save

  1. First-Time Buyer Rebates: Land transfer tax rebates in some provinces.
  2. Shop Around: Compare lawyers, home inspectors, and movers for the best price.
  3. Ask Lender About Appraisal: Some lenders might cover or discount it.
  4. Negotiate: See if the seller can pay part of the closing costs (rare in hot markets, more possible in slower ones).

Section 11 – FAQs About Closing Costs in Canada

Below are answers to the most common questions about closing costs in Canada.

Which fees are mandatory for every homebuyer?

You’ll almost always face legal fees, land transfer tax (in many provinces), and possible adjustments for property tax. Everything else depends on your situation (like if you need an appraisal or mortgage insurance).

You can usually add CMHC insurance to your mortgage principal and pay it off over time, but some lenders might charge it at closing. Check how your lender handles this to avoid surprises.

In some cases—yes. This is more common in buyer’s markets, but typically the seller’s not obliged to contribute. Always ask your real estate agent for guidance.

Yes. New builds might have extra charges like development fees or GST/HST. Resale homes might have fewer surprise costs but might need an inspection more.

A great resource is the Canada Mortgage and Housing Corporation (CMHC) website, which has detailed advice on Canadian mortgage and housing questions.

Closing costs in Canada might sound scary at first, but now you know how they work. By planning ahead for land transfer tax, legal fees, potential mortgage default insurance, and other adjustments, you won’t be caught off-guard on closing day. Remember:

  • Budget 1–4% (or more) of your home’s purchase price for these costs.
  • Check for first-time buyer rebates or special deals in your province.
  • Shop around for your home inspector, lawyer, and moving services to save money.

If you want personalized advice or help crunching the numbers, reach out to our friendly team at The Genesis Group. We’ll guide you on everything from mortgage rates in Canada to closing cost strategies—making sure your dream home doesn’t turn into a financial headache. Let’s turn your homebuying journey into a success story!

Leave a Reply

Scroll to Top

Request Your Free Consultation

5 Year - Variable

4.45%

This exclusive rate is available for High Ratio Mortgages and applies to both new purchases and some mortgage switches. With a guaranteed rate of Prime -1.00%, you’ll enjoy the freedom to make extra payments or increase your monthly payments by up to 20% per year.

And the best part? This is a full-frills mortgage—no hidden surprises or restrictive clauses like a bona fide sales clause!

Prime Rate @ 5.45%

4.45% - 5.50%

If you don’t qualify for our lowest advertised rate, don’t worry! We have other competitive options tailored to your needs. Factors such as your credit score and home equity will determine your final rate.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

5 Year - Open

4.95%

Enjoy a rate discount starting from Prime -0.50% for your term. This 5-year Adjustable Rate Mortgage (ARM) offers unmatched flexibility: pay it, lock it, break it, or change it—with no restrictions or penalties.

Perfect for insured, insurable, and uninsured new purchases and switches, this option is available for owner-occupied properties only.

Prime Rate @ 5.45%

4.95% - 6.75%

If you don’t qualify for our lowest advertised rate, don’t worry—there are still excellent low-rate options for you! Your final rate depends on factors such as your credit rating and home equity.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

5 Year - Fixed

4.24%

Lock in this competitive rate for High Ratio purchases! Enjoy the flexibility of making up to 20% lump sum payments annually, plus the option to increase your regular payments by up to 20%—perfect for managing your mortgage your way. Secure this rate for up to 120 days, giving you the confidence to plan ahead.

4.24% - 5.69%

Even if you don’t qualify for our lowest advertised rate, we’re here to help with a variety of competitive options designed to meet your needs. The rates above reflect realistic possibilities based on factors such as your credit score, home equity, and financial profile.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

4 Year - Fixed

4.59%

Take advantage of this competitive rate available for High Ratio purchases and select Insured transfers! Enjoy the flexibility of making up to 20% lump sum payments annually and increasing your regular payments by up to 20%. This is a full-featured mortgage designed to give you the freedom and flexibility you need. 

4.59% - 6.84%

If you don’t qualify for our lowest advertised rate, don’t worry—we’ve got a variety of low-rate options to fit your needs. The rates shown above reflect realistic scenarios and are influenced by factors like credit score, home equity, and financial profile.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

3 Year - Fixed

4.39%

Take advantage of this fantastic rate available exclusively for High Ratio deals! With the flexibility to make up to 15% lump sum payments annually and the option to increase your regular payments by up to 15%, this is a full-featured mortgage that adapts to your needs. Lock in this rate for up to 120 days and plan your homeownership journey with confidence.

4.39% - 5.79%

Don’t worry if you don’t qualify for our lowest advertised rate—we’ve got you covered with a range of low-rate options tailored to fit your unique circumstances. The rates above reflect realistic scenarios based on factors such as credit score, home equity, and financial profile.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

2 Year - Fixed

4.84%

Lock in this competitive rate for High Ratio purchases! Enjoy the flexibility of making up to 20% lump sum payments annually, plus the option to increase your regular payments by up to 20%—perfect for managing your mortgage your way. Secure this rate for up to 120 days, giving you the confidence to plan ahead.

4.84% - 6.19%

Even if you don’t qualify for our lowest advertised rate, we’re here to help with a variety of competitive options designed to meet your needs. The rates above reflect realistic possibilities based on factors such as your credit score, home equity, and financial profile.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

1 Year - Fixed

5.49%

Unlock this exclusive low rate for High Ratio purchases and Switches. Enjoy up to 20% lump sum payments annually and the flexibility to increase your payments by 20%! Plus, lock in this fully-loaded mortgage rate for up to 120 days—no hidden restrictions, just exceptional value.

5.49% - 6.99%

Even if you don’t qualify for our lowest rate, we’ve got plenty of low-rate options tailored to fit your unique situation. Your final rate depends on factors like your home equity and credit score, but with Genesis, you’ll always get the best-possible rate for your needs.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.