Closing costs are expenses paid at the time of finalizing a home purchase — beyond the down payment. They include government taxes, professional fees, and insurance. In Canada, closing costs typically range from 1.5% to 4% of the purchase price, though they vary significantly by province due to land transfer tax differences.
| Province | LTT on $600K | FTB Rebate | Legal Fees | Total Est. |
|---|---|---|---|---|
| Ontario (no Toronto) | ~$8,475 | $4,000 | $1,900 | ~$7,300 |
| Toronto | ~$16,950 | $8,475 | $2,000 | ~$11,500 |
| BC (resale) | ~$100 | $0 (over $525K) | $1,700 | ~$13,000 |
| BC (new, under $835K) | ~$100 | Full exempt | $1,700 | ~$3,000 |
| Alberta | ~$600 | N/A | $1,500 | ~$3,400 |
| Quebec | ~$9,000 | $0 | $1,800 | ~$12,100 |
CMHC mortgage default insurance premiums are not paid as a cash closing cost — they are added to your mortgage principal. However, most provinces charge provincial sales tax (PST) on the CMHC premium, which IS paid upfront in cash at closing. Ontario charges 8% PST and Quebec charges 9% QST on the CMHC premium.
While you're building your down payment through the FHSA and RRSP HBP, make sure your everyday banking has zero fees. KOHO saves you $200+ per year in bank fees — money that goes straight toward your home purchase. Use code 45ET55JSYA for a bonus.
Get KOHO Free — Use Code 45ET55JSYARelated: LTT Rebates by Province | Real Estate Lawyer Guide | Title Insurance Guide