Everything you'll pay on closing day — from Ontario's double LTT to Alberta's no-LTT advantage.
Closing costs are the one-time fees you pay on the day you take possession of your new home. Unlike the down payment, which goes toward equity, closing costs are pure expenses — they don't come back. Most Canadian buyers need to budget 1.5% to 5% of the purchase price for closing costs, depending on the province.
The single biggest variable between provinces is the land transfer tax (called Property Transfer Tax in BC, Welcome Tax in Quebec). Ontario and BC have the highest closing cost burdens; Alberta and Saskatchewan have the lowest.
| Province | Tax Name | LTT on $700K Home | FTB Rebate? |
|---|---|---|---|
| Ontario (outside Toronto) | Land Transfer Tax | ~$11,475 | Up to $4,000 |
| Ontario (Toronto) | Provincial + Municipal LTT | ~$22,950 | Up to $8,475 |
| BC | Property Transfer Tax | ~$13,000 | Up to $8,000 (under $500K) |
| Quebec | Welcome Tax | ~$8,500 | Varies by municipality |
| Manitoba | Land Transfer Tax | ~$7,720 | Up to $4,500 |
| PEI | Real Property Transfer Tax | ~$7,000 | Up to $2,000 |
| NS | Deed Transfer Tax | ~$8,400 | None |
| NB | Land Transfer Tax | ~$3,500 | None |
| Alberta | None (registration fees only) | ~$250 | N/A |
| Saskatchewan | None (registration fees only) | ~$450 | N/A |
Every province requires a lawyer (or notary in Quebec) to complete the real estate transaction. They handle title searches, registration, mortgage documents, and fund disbursement. Shop around — fees vary significantly. Expect $1,200–$1,800 for a standard purchase.
Title insurance protects against survey errors, title fraud, zoning violations, and outstanding work orders. Most lenders require it. It's a one-time premium paid at closing.
If the seller prepaid property tax for the full year, you reimburse them for your share from the possession date. This can add $500–$2,000 to your closing costs.
While technically a pre-closing cost, most buyers pay for a home inspection before removing the condition. Budget $400–$600 for a standard home.
If your down payment is under 20%, you pay CMHC mortgage default insurance. The premium is added to your mortgage balance — but in Ontario, Quebec, and Saskatchewan, you also owe provincial sales tax on the premium, which must be paid in cash at closing.
KOHO's high-interest savings account helps your closing cost fund grow faster. No monthly fees, earn interest on every dollar.
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