What are Closing Costs?

A mistake that buyers often make is that when calculating the price and affordability of their future home, they do not take into account the closing costs that are associated with the home purchase (closing costs generally account for 1.5-3% of the home purchase price). Among the costs, below are a list of the most common to keep an eye out for and budget into your plans.

Expected Closing Costs With Dollar Value




Appraisal Fee

A lender fee to appraise the home value (sometimes covered by a lender) and not required on a CMHC insured mortgage


Closing Adjustments

This is an estimate on bills the previous owner has prepaid such as property tax and utility bills.


Home Inspection

Ensure that the home it is up to code and has no hidden issues


Land Transfer Tax - Prov

Ontario (BC LTT would be $12,400 Alberta has no LTT, but has property & mortgage registration which would cost ~$300 in this example)


Land Transfer Tax - City

GTA (note if you live in Ontario but not the GTA, or Alberta/BC you will not be charged for this)


Real Estate Lawyers

Fees vary based on price of home and lawyer. Integral fee to close mortgage


New hydro account

Only charged the buyer has never had a hydro account before


Property Insurance

Total yearly cost of between $600-800 paid out in monthly premiums


Title Insurance

Provides coverage for the home owners rights of ownership, including fraud, forgery, missing heirs, among others.


Interest Adjustment

Payment of interest if mortgage starts in the middle of the month. On a 3% Fixed mortgage, this would be about $50 a day


PST on CMHC Premium

Only applicable if less than 20% down payment


New home warranty

Only applicable for a newly built house/condo


Status Certificate Fee

Applicable for Condos only (roughly $100)



Only applicable if you are buying a new build and is province specific



Note this number normally ranged from 1.5-3% of the total purchase price