Facebook Linkedin Youtube Instagram

Closing Costs in Canada: What Home Buyers Pay in 2026

closing costs
This article is for informational purposes only and does not constitute financial advice. Speak with a licensed mortgage professional before making any mortgage decisions.

Quick Answer: Closing Costs in Canada

Quick Answer
  1. Closing costs in Canada typically run between 1.5% and 4% of the purchase price, on top of the down payment.
  2. The main line items are land transfer tax (highest in Toronto and parts of BC), legal or notarial fees, title insurance, home inspection, appraisal, and property tax and utility adjustments.
  3. First-time buyers in Ontario, Toronto, BC, and PEI may qualify for rebates that reduce land transfer tax.
  4. Almost all costs are due on or just before closing day, paid through your real estate lawyer or Quebec notary.

Beyond the Down Payment: Why Closing Costs Catch Buyers Off Guard

Saving for a down payment gets almost all the attention when you’re planning to buy a home in Canada. Closing costs get almost none, and they’re often the reason a well-planned purchase feels tight in the final week before possession.

Closing costs are the one-time fees, taxes, and insurance premiums you pay to complete the purchase of a home. They sit on top of your down payment, and they’re typically due within days of your closing date. A useful rule of thumb: budget 1.5% to 4% of the purchase price for closing costs, with the actual number depending heavily on where you’re buying.

The good news is that closing costs are predictable if you know what makes up the list. This guide walks through every category, gives you a realistic dollar range, and shows when each cost is due, so nothing surprises you the week you get the keys. See our down payment calculator to model your full cash-to-close.

1.5–4%Of the purchase price, typical closing-cost range in Canada
$16,950Combined ON + Toronto LTT on a $600K home (before rebates)
Up to $8,475Combined ON + Toronto first-time buyer LTT rebate
3–6 mo.Quebec Welcome Tax invoice delay after closing

Where You’re Buying Changes What You’ll Pay

Not every buyer pays the same closing costs. Land transfer tax, in particular, varies enormously by province and city, and that single line item is often the largest closing cost you’ll face. Use the grid below to find where you fit:

Toronto, ON
Ontario LTT + Toronto Municipal LTT. Highest closing-cost city. First-time buyers may claim both rebates (up to $8,475 combined).
Rest of Ontario
Ottawa, Hamilton, London and elsewhere: Ontario LTT only. First-time buyer rebate of up to $4,000 may apply.
British Columbia
Tiered Property Transfer Tax. First-time buyers and buyers of qualifying newly built homes may qualify for exemptions.
Alberta or Saskatchewan
No provincial land transfer tax. Nominal Land Titles registration fees only. Lowest closing costs in the country.
Quebec
No LTT at closing, but the Welcome Tax (droit de mutation) is billed by your municipality weeks or months later. Notary handles closing.
Atlantic Canada
PEI, Nova Scotia, and New Brunswick each apply their own transfer tax, often with first-time buyer relief.

If you want a personalized estimate before you write an offer, an instant pre-approval lets our team model your full cash-to-close in minutes.

The Core Closing Costs Every Canadian Buyer Pays

Direct answer: The core closing costs every Canadian home buyer pays are land transfer tax, legal or notarial fees, title insurance, a home inspection, an appraisal, and property tax and utility adjustments. Together these typically total between 1.5% and 4% of the purchase price, with land transfer tax usually the largest single item.

Land transfer tax is a one-time provincial (and in Toronto, municipal) tax paid when title to the property changes hands. It’s calculated on the purchase price using a sliding scale. On a $600,000 Toronto home, the combined provincial and municipal LTT is about $16,950 before rebates. Alberta and Saskatchewan don’t charge land transfer tax; they charge only small title registration fees. Our land transfer tax calculator shows what applies in your city.

Legal or notarial fees cover the professional handling of your closing. In common-law provinces, a real estate lawyer handles this. In Quebec, a notary is legally required. Expect $1,200 to $2,500 for legal or notarial fees plus disbursements (title search, courier, registration).

Title insurance is a one-time premium — typically $250 to $500 — that protects you from title defects, fraud, and boundary problems. It is not the same as a title search; both are usually done.

Home inspection typically costs $400 to $700 for a resale home. A new-build inspection can run higher. Appraisal is often ordered by your lender to confirm the home’s market value, typically $300 to $500. If a lender covers the cost, you may never see the invoice.

Property tax and utility adjustments are credits or debits between you and the seller for anything prepaid past the closing date. Your lawyer or notary calculates them on the statement of adjustments.

Pegasus Mortgage Lending
Where your closing-cost dollars go on a $600,000 Toronto purchase
Illustrative breakdown — land transfer tax dominates the total
LTT share of total
~78%
of illustrative closing costs
Total (illustrative)
~$21,350
non-FTHB, $600K home
With FTHB rebates
~$12,875
up to $8,475 combined relief
Illustrative. Based on Ontario Land Transfer Tax Act; City of Toronto Municipal Code Chapter 760. Figures dated 2026.
Pegasus Mortgage Lending Center Inc. FSRA Lic # 11479

Province-by-Province Cost Comparison for a $600,000 Home

To make the range concrete, it helps to hold the home price steady and change only the location. The table below shows illustrative closing-cost totals on a $600,000 purchase in five Canadian markets. Figures are dated 2026 and rounded for readability; your actual costs may vary based on your lender, insurer, and any first-time buyer rebates you qualify for.

Two patterns stand out. First, Toronto’s combined provincial and municipal LTT dwarfs every other category. Second, Calgary is genuinely inexpensive to close in: no land transfer tax means the total may sit under $5,000. Vancouver and Ottawa land in the middle. Montreal looks moderate at closing, but remember the Quebec Welcome Tax is billed after closing, often weeks or months later, so the true out-of-pocket lands above the closing-day figure.

Pegasus Mortgage Lending
Illustrative closing costs on a $600,000 purchase — five Canadian markets
Non-first-time-buyer estimates, dated 2026 — actual figures vary by lender, insurer, and rebates
City / Region Land Transfer Tax Legal or Notary Other Costs* Approx. Total
Toronto, ON
ON LTT + Toronto MLTT		 $16,950 $1,500–$2,500 $1,400–$2,000 $19,850–$21,450
Ottawa, ON
ON LTT only		 $8,475 $1,500–$2,500 $1,400–$2,000 $11,375–$12,975
Vancouver, BC
BC Property Transfer Tax		 $10,000 $1,500–$2,500 $1,400–$2,000 $12,900–$14,500
Calgary, AB
No LTT — title registration only		 ~$500 $1,200–$2,000 $1,400–$2,000 $3,100–$4,500
Montreal, QC
Welcome Tax billed post-closing		 —
+ ~$7,700 later		 $1,200–$2,000
(notary)		 $1,400–$2,000 $2,600–$4,000
Welcome Tax adds ~$7,700
*Other costs = title insurance, home inspection, appraisal, property tax and utility adjustments, PST on default-insurer premium where applicable.
Sources: CMHC — Closing Costs; Ontario Land Transfer Tax Act; City of Toronto Municipal Code Ch. 760; BC Property Transfer Tax Act; Quebec Act respecting duties on transfers of immovables. Figures illustrative and dated 2026.
Pegasus Mortgage Lending Center Inc. FSRA Lic # 11479

The comparison is a reminder that any national “average closing costs” number can be misleading. What you actually pay depends far more on your province and city than on the price of your home. If you’re deciding between two cities — say, relocating from Toronto to Calgary — the closing-cost gap can be the equivalent of a second down payment. Model both sides of the decision before you write an offer.

When Each Cost Is Due: Your Closing Day Roadmap

Direct answer: Closing costs are not one lump sum on closing day. Your deposit is due at offer acceptance, inspection and appraisal invoices arrive in the first two weeks, and the largest costs — land transfer tax, legal fees, and adjustments — are paid to your lawyer or notary just before closing. The Quebec Welcome Tax is billed weeks or months after closing.
  1. 1
    Day 0 — Offer accepted.Your deposit ($5,000 to $50,000 or more, depending on market) is delivered to the seller’s brokerage and held in trust. This is part of your down payment, not an additional cost.
  2. 2
    Days 1 to 10 — Conditions period.You book a home inspection ($400–$700), and your lender orders an appraisal ($300–$500 if you pay directly). If financing conditions are satisfied, the deal goes firm.
  3. 3
    Days 10 to 30 — Firm deal to pre-closing.Your real estate lawyer or Quebec notary sends a retainer request, often $500 to $1,000 upfront, and begins the title search.
  4. 4
    Days 45 to 60 — Pre-closing week.Your lender advances mortgage funds to your lawyer’s or notary’s trust account. You then wire or bank-draft your cash-to-close — the down payment balance plus every remaining closing cost — to the same trust account.
  5. 5
    Closing day.Your lawyer or notary disburses funds to the seller, pays the land transfer tax to the province (and Toronto, if applicable), pays the title insurer, and registers the transfer. Keys are released to you, usually in the late afternoon.
  6. 6
    Post-closing (Quebec only).The Welcome Tax invoice arrives from your municipality three to six months later. Have the cash set aside.
Pegasus Mortgage Lending
Closing-day timeline — when each cost is due
From offer acceptance to keys — and, in Quebec, the Welcome Tax bill that arrives later
Day 0
Offer accepted
Deposit ($5,000–$50,000+) delivered to seller’s brokerage and held in trust.
Days 1–10
Conditions period
Home inspection ($400–$700). Lender-ordered appraisal ($300–$500 if you pay directly).
Days 10–30
Firm deal to pre-closing
Lawyer or Quebec notary retainer ($500–$1,000 upfront). Title search begins.
Days 45–60
Pre-closing week
Lender advances mortgage funds to lawyer/notary trust account. You wire the balance of cash-to-close.
Closing day
Keys released
Lawyer or notary disburses to seller, tax authorities, title insurer. Transfer registered; keys released.
Post-closing
Quebec only
Welcome Tax invoice arrives from municipality 3–6 months later. Have the cash set aside.
The single-largest transfer is your wire or bank draft to your lawyer/notary in the pre-closing week — it combines the balance of your down payment with every remaining closing cost. Confirm funds are in place with your lawyer before booking movers.
Source: Ontario Bar Association guidance on residential closings; Chambre des notaires du Québec closing procedures.
Pegasus Mortgage Lending Center Inc. FSRA Lic # 11479

The Line Items Most Buyers Miss

Three closing costs slip past most first-time buyers because they are not on the bank’s introductory checklist.

Provincial sales tax on the CMHC, Sagen, or Canada Guaranty premium. If your down payment is less than 20%, your mortgage is insured by one of Canada’s three default insurers — CMHC, Sagen, or Canada Guaranty. The insurance premium itself is added to your mortgage. But in Ontario, Quebec, Manitoba, and Saskatchewan, provincial sales tax on that premium is due in cash at closing. On a large insured mortgage, this line can be several hundred dollars, sometimes more. Our CMHC insurance calculator shows the premium and the taxable portion.

Property tax and utility adjustments. If the seller has prepaid property taxes or utilities past your closing date, you owe them a credit. It appears on your lawyer’s statement of adjustments and gets added to your cash-to-close.

Title insurance is separate from a title search. A title search checks the current record; title insurance covers you against future problems the search couldn’t catch — including title fraud, which has become a documented concern in Ontario and BC. Both are usually done.

First-Time Home Buyer Rebates That Reduce Closing Costs

Direct answer: First-time home buyers in Ontario, Toronto, British Columbia, and PEI may qualify for land transfer tax rebates or exemptions. In Ontario, the rebate is up to $4,000. In Toronto, an additional municipal rebate of up to $4,475 may apply. In BC, qualifying first-time buyers and buyers of qualifying newly built homes may claim a full or partial Property Transfer Tax exemption. Eligibility rules and price limits apply.

The Ontario Land Transfer Tax rebate for first-time buyers is up to $4,000 and is applied at closing when your lawyer files the transfer paperwork. It is not automatic — your lawyer must confirm your eligibility and submit the claim.

Toronto buyers may stack the provincial rebate with the Toronto Municipal LTT rebate of up to $4,475. On a qualifying purchase, that is up to $8,475 combined in first-time buyer relief on land transfer tax alone.

British Columbia offers two separate programs: the First-Time Home Buyers’ PTT Exemption on qualifying homes, and the Newly Built Home Exemption for qualifying new-construction purchases. Price thresholds apply and change periodically; confirm current limits with your notary or through the Province of BC. Prince Edward Island offers a first-time buyer LTT exemption on qualifying homes.

One program you may still see referenced online: the federal CMHC First-Time Home Buyer Incentive. This program was retired on March 31, 2024. Do not budget around it. Our first-time home buyer resources explain what programs are actually available today.

Common Mistakes That Blow Up Closing-Day Budgets

Even careful buyers get caught by one or more of these. Read this list once, then again the week before you write your offer.

  • •  Budgeting for the down payment but not the closing costs. Add 1.5% to 4% of the purchase price on top of the down payment when you calculate cash-to-close.
  • •  Assuming the CMHC, Sagen, or Canada Guaranty premium is fully rolled into the mortgage. The premium is added to the mortgage — but the provincial sales tax on that premium is due in cash at closing in Ontario, Quebec, Manitoba, and Saskatchewan.
  • •  Forgetting the property tax adjustment. If the seller has prepaid property taxes past your closing date, you owe them a credit; it lands on the lawyer’s statement of adjustments.
  • •  Missing the Ontario or Toronto first-time buyer rebate paperwork. The rebate is not automatic — your lawyer files it with the transfer. Confirm eligibility before closing, not after.
  • •  Booking the moving truck before the lawyer confirms funds are in place. Closings can slip a day if a lender document is late. Keep 24 hours of flex on movers, utility hookups, and locksmith bookings.
  • •  Planning around the CMHC First-Time Home Buyer Incentive. This program was retired on March 31, 2024. It is no longer available; do not build it into your budget.
  • •  Waiting for the Quebec Welcome Tax bill to worry about it. Set aside the Welcome Tax amount at closing so the invoice, which arrives weeks or months later, does not strand your budget.

For a deeper look, see hidden costs first-time homebuyers miss.

Frequently Asked Questions

How much are closing costs in Canada as a percentage of the home price?

Closing costs in Canada typically fall between 1.5% and 4% of the purchase price, on top of the down payment. Toronto sits at the top of the range because of its dual land transfer tax; Alberta and Saskatchewan sit at the bottom because they have no provincial land transfer tax at all.

Do I have to pay HST or GST on a resale home in Canada?

Resale homes are generally exempt from GST and HST. New-construction homes are taxable: GST or HST is charged on the purchase price, sometimes with a partial rebate for owner-occupants. If you are buying new, confirm the tax treatment with the builder and your lawyer before signing.

When do I actually pay my closing costs?

Costs are spread over the buying timeline. Your deposit is paid at offer acceptance; inspection and appraisal in the first two weeks; the lawyer or notary retainer soon after; and the biggest costs (land transfer tax, legal fees, adjustments) just before or on closing day. The Quebec Welcome Tax is billed after closing.

How much is land transfer tax in Toronto for a first-time buyer?

A first-time buyer in Toronto may claim both the Ontario LTT rebate (up to $4,000) and the Toronto Municipal LTT rebate (up to $4,475), for a combined maximum of up to $8,475. On a home priced under approximately $400,000, the rebates can offset all or most of the LTT owing.

Do I really need title insurance if I have a lawyer?

Yes, in most cases. Your lawyer confirms clean title as of closing day; title insurance protects you against future issues the search could not catch, including title fraud, boundary disputes, and unpaid utilities from prior owners. It is a one-time premium, typically $250 to $500.

Are closing costs different for a new construction home?

Yes. New builds often add development charges, HST or GST (with possible rebates), Tarion or provincial new-home warranty enrolment fees, occupancy fees during the interim occupancy period, and utility hookup or metering fees. Total closing costs on a new build can materially exceed those on a comparable resale home.

Can I roll my closing costs into my mortgage?

Generally, no. Most closing costs must be paid in cash at closing. The default insurance premium (CMHC, Sagen, or Canada Guaranty) is the exception; it is added to the mortgage principal. Some lenders offer cash-back mortgages that provide funds you can direct toward closing costs, but the trade-off is usually a higher rate.

What happens on closing day in Quebec if there is a notary instead of a lawyer?

In Quebec, a notary (not a lawyer) handles real estate closings by law. The notary drafts the deed of sale, registers title, holds funds in trust, and disburses to the seller and tax authorities. Notary fees typically replace lawyer fees. The Welcome Tax is billed by your municipality after closing.

What is the biggest closing-cost mistake first-time buyers make?

Underestimating the total. Buyers focus on the down payment and treat closing costs as an afterthought. In Toronto, that gap can be over $16,000. A more realistic approach is to budget about 3% of the purchase price for closing costs in most cities, then adjust up (Toronto) or down (Calgary) based on where you are buying.

Talk to a Broker Before You Sign the Offer

Closing costs are entirely knowable — but only if someone models them for your situation before you commit. Razi Khan, Founder and Mortgage Broker at Pegasus and the Pegasus team walk buyers through this every day, free and with no obligation.

Get Your Instant Pre-Approval Certificate
This article is for informational purposes only and does not constitute financial advice. Speak with a licensed mortgage professional before making any mortgage decisions. Pegasus Mortgage Lending Center Inc. — FSRA Lic # 11479 — pegasuslending.com
Razi Khan — Founder, CEO and Mortgage Broker at Pegasus Mortgage Lending

About the author

Razi Khan

Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479

Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.

Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.

Sources & References

Pegasus: Your Path to a Better Mortgage
Get started today