Closing Costs

Real Estate Closing Costs

Closing costs are miscellaneous fees associated with the sale of the home. These are presented to you on the closing date of your home by your lawyer. According to the CMHC, you should allocate at least 1.5% of your home's purchase value for closing costs. Closing costs will vary depending on the province/city you are purchasing in.

Below is a brief explanation of the potential closing costs that you may encounter - use this information as a guideline before you consult a lawyer for your closing cost details:

Real Estate Closing Costs

Home Inspection Payment Generally Required with Reselling Homes

Appraisal Fee Normally Required with New Properties

An appraisal provides the bank with a property value estimate. The cost of having an appraisal done is typically between $100-300. This is usually done by the home seller.

Home Inspection Payment Generally Required with Reselling Homes

A home inspection can cost $300 - $400 and is highly recommended as it provides an additional sense of security to the home buyer. We always recommend working with an inspector that offers liability insurance which provides coverage in case an issue with the home is overlooked.

Home Inspection Fee Generally Required with Resale Homes

Fire Insurance

Before receiving an approved mortgage, you will need to acquire home insurance/fire coverage on the home. This is mandatory, and can vary in cost depending on the size of your property, loan amount, and the neighboring area. The cost of home insurance typically lies within $250 to $600 per year.

Sales Tax on Mortgage Insurance

Sales tax is applied to all mortgage loans and must be paid upon closing of the home. The insurance premium itself, however, can be financed as part of the mortgage loan.

Land Survey Fee

All homes for sales require a recent survey, or title insurance (depending on your lender of choice). Title insurance costs substantially less – we recommend working with us to determine the best option. If it's deemed that a survey is necessary, the typical cost lies within $550 to $950.

Legitimate Costs and Disbursements

Don't forget about the lawyers! Lawyers and notaries will have fees attached to their services which include preparing the title deed, processing your mortgage papers, and performing various searches on your home to make sure there are no outstanding liens that are attached to the property.

Land Transfer Tax

Most provinces charge a land transfer tax which is payable by the purchaser. Based on your province of residence, the amount will vary. The land transfer tax amount is based on the purchase price of your property and in most cases, first time home buyers are entitled to a refund.

New House Warranty

If moving into a newly built home, it is important to consider an extended warranty program. This will protect the buyer should the builder fail to build to what was agreed to and also help with any repairs or replacements that need to happen prior to moving in. The cost of an extended warranty is approximately $400-700.

Terrain Transfer Tax


For new construction homes, HST is now a payable tax. To help avoid any surprises, builders will often include this cost in the purchase price. Either way, be sure to ask your builder about how HST affects the price that they have listed the home at.

Final Adjustments

Estimates are required for closing adjustments. Any bills (electricity, heat, water, etc.) following the closing date are the obligation of the purchaser. A complete overview of all billable items is typically provided by your lawyer, so be sure to look for this item in your closing papers or inquire with your lawyer on any final adjustments.