Canadian Closing Costs: What to Budget Beyond the Purchase Price
A province-by-province breakdown of land transfer tax, legal fees, title insurance, and every other closing cost Canadian home buyers need to budget for.
Canadian Closing Costs: What to Budget Beyond the Purchase Price
Most first-time buyers budget for the down payment and forget about everything else. Closing costs in Canada typically run 1.5%–4% of the purchase price on top of your down payment — and can be significantly higher in provinces with steep land transfer taxes.
Land Transfer Tax: The Biggest Variable
Land transfer tax (LTT) is the largest closing cost in most provinces and the one that varies the most.
| Province | Rate Summary | |----------|-------------| | Ontario | Progressive: 0.5% up to $55,000, up to 2.5% over $2M | | British Columbia | Property Transfer Tax: 1% first $200K, 2% to $2M, 3% above | | Quebec | Welcome Tax: tiered, starts at 0.5%, reaches 1.5%+ | | Manitoba | 0.5% to $30K, up to 2% over $200K | | Prince Edward Island | 1% on amounts over $30,000 | | Alberta, Saskatchewan, Nova Scotia, NB, NL | No provincial LTT (some municipal fees apply) |
Toronto buyers pay double — both Ontario's provincial LTT and the City of Toronto's municipal LTT, nearly doubling the tax bill.
First-Time Buyer Rebates
Both Ontario and BC offer rebates that can eliminate or reduce LTT for first-time buyers:
- Ontario: Up to $4,000 rebate on provincial LTT (eliminates tax on homes under ~$368,000)
- Toronto: Up to $4,475 additional municipal rebate for first-time buyers
- BC: Full Property Transfer Tax exemption on homes under $500,000 for first-time buyers (partial up to $525,000)
Other Closing Costs to Budget For
Legal fees — $1,500–$2,500 for a real estate lawyer or notary (Quebec uses notaries exclusively)
Title insurance — $200–$400 per property. Protects against defects in title, unpaid taxes, survey issues
Home inspection — $400–$600. Optional but highly recommended for resale
Property tax adjustment — If the seller has prepaid property tax, you reimburse them to the completion date
CMHC insurance premium — If your down payment is under 20%, this is added to your mortgage (not a cash cost at closing, but a real cost). Ranges from 2.8% to 4% of the insured amount
Moving costs — Often overlooked. Movers in major cities charge $150–$250/hour
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Official Resources
- Ontario — Land Transfer Tax — provincial rates and first-time buyer rebate details
- City of Toronto — Municipal Land Transfer Tax — Toronto MLTT rates and rebates
- BC — Property Transfer Tax — BC PTT rates and first-time buyer exemption
- Quebec — Welcome Tax (Bienvenue) — Quebec transfer duties
- CMHC — Mortgage Loan Insurance — CMHC insurance premium rates and rules
- FCAC — Homebuying Costs — federal guide to all closing costs