# What closing costs should I expect as a buyer in Canada?

> Budget 1.5%–4% of the purchase price for closing costs beyond your down payment. The biggest items are land transfer tax, legal fees, and title insurance. First-time buyers often qualify for rebates on land transfer tax.

Category: Closing
Last verified: 2026-04-19
Source: https://ratellow.com/faqs/closing/what-closing-costs-should-i-expect-as-a-buyer-in-canada

## Answer
**Closing costs are the fees and taxes due on possession day — separate from your down payment — and typically range from 1.5% to 4% of the purchase price.**

## Major Closing Cost Categories

| Cost | Typical Range | Notes |
|---|---|---|
| **Land Transfer Tax (Provincial)** | 0.5%–2.5% of price | ON, BC, QC, NS, PEI charge it; AB, SK charge flat title registration fee |
| **Toronto Municipal LTT** | 0.5%–2.0% of price | City of Toronto only — stacked on top of ON LTT |
| **Legal / Notary Fees** | $1,200–$2,500 | Includes disbursements (title search, registration) |
| **Title Insurance** | $250–$500 | One-time premium for life of ownership |
| **Home Inspection** | $400–$700 | Pre-offer; technically pre-closing |
| **Appraisal Fee** | $300–$600 | Required by most lenders on conventional mortgages |
| **Property Tax Adjustment** | Varies | Buyer reimburses seller for prepaid taxes |
| **Utility Adjustments** | $100–$500 | Prepaid condo fees or utilities |
| **Moving Costs** | $1,000–$5,000 | Highly variable |
| **CMHC Insurance Premium** | 2.8%–4.0% of mortgage | Added to mortgage; PST portion paid at closing (ON/QC/MB only) |

## First-Time Buyer Rebates

- **Ontario**: Up to $4,000 rebate on provincial LTT; Toronto has a separate $4,475 municipal rebate.
- **British Columbia**: Full exemption up to $500K purchase price (PTT).
- **Federal HBTC (Home Buyers' Tax Credit)**: $10,000 non-refundable credit claimed on your tax return, worth approximately $1,500 in actual tax savings (15% federal credit rate).

### Your Next Steps
1. **Calculate your LTT** → [Land Transfer Tax Calculator](/mortgages/land-transfer-tax-calculator)
2. **Review all closing costs** → [Closing Costs Guide](/guides/closing-costs-canada)
3. **Speak with your real estate lawyer** to confirm exact disbursements

## Related guide
- https://ratellow.com/guides/closing-costs-canada

## Sources
- Closing Costs — FCAC — https://www.canada.ca/en/financial-consumer-agency/services/mortgages/closing-costs.html
- Home Buying Guide — CMHC — https://www.cmhc-schl.gc.ca/consumers/home-buying/buying-guides