Closing Cost Calculator
By Hami Tahm · Last reviewed May 2026
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Estimate all closing costs when buying or selling a home in Canada.
Calculate your land transfer tax separately for any province — including Toronto MLTT and BC, Ontario, and Quebec first-time buyer relief.
How much are closing costs in Canada?
Closing costs in Canada typically range from 1.5–4% of the purchase price for buyers. On a $500,000 home in Ontario, expect $12,000–$18,000 in closing costs — including provincial land transfer tax ($6,475), legal fees ($1,500–$2,500), title insurance, and home inspection. Toronto buyers pay an additional municipal land transfer tax, pushing costs to $18,000–$24,000 on a $500,000 purchase.
Purchase Details
$120,000
Additional Fees
Total Cash Needed
$133,725
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Cost Breakdown
Key Takeaways
- Buyer closing costs in Canada typically total 1.5–4% of the purchase price — land transfer tax is the largest single cost in Ontario, BC, and Manitoba.
- Toronto buyers pay both the provincial and municipal land transfer tax — on a $750,000 purchase, the combined total is $22,200.
- CMHC mortgage insurance is added to your mortgage, not paid at closing — but the PST on the premium (8% in Ontario, 9% in Quebec) is due at closing.
- Seller closing costs are different from buyer costs: real estate commission (3.5–5%) and legal fees are the primary items, totalling 4–7% of the sale price.
- Alberta and Saskatchewan have no land transfer tax, making closing costs in those provinces significantly lower — typically 1–2% of purchase price.
How Are Closing Costs Calculated in Canada?
Closing costs in Canada are calculated as a combination of fixed fees and purchase-price-based charges. Use our land transfer tax calculator to estimate your LTT by province and city. Total buyer closing costs typically range from 1.5–4% of the purchase price, depending on province and city. In Ontario and Toronto, land transfer tax alone accounts for the majority of this amount. Closing costs are separate from your down payment — see our guide to the down payment of a house in Canada for the full breakdown of upfront cash needed when buying.
Toronto Buyers Pay Two Land Transfer Taxes
Buyers purchasing in Toronto pay both the Ontario provincial land transfer tax and the Toronto municipal land transfer tax (MLTT) — effectively double. On a $750,000 purchase, the combined total is $22,200. First-time buyers can receive rebates on both. Use the Land Transfer Tax Calculator for a precise estimate.
Buyer Closing Costs at a Glance
| Cost Item | Typical Range | Who Pays | Notes |
|---|---|---|---|
| Land Transfer Tax | 0–$20,000+ | Buyer | Provincial + municipal (Toronto); nil in AB/SK |
| Legal Fees | $1,500–$2,500 | Buyer | Includes title search and mortgage registration |
| Title Insurance | $250–$350 | Buyer | Arranged by your lawyer |
| Home Inspection | $400–$600 | Buyer | Optional but strongly recommended |
| Property Tax Adjustment | $300–$1,500 | Buyer or Seller | Depends on prepaid vs. arrears at closing |
| CMHC PST (ON/QC only) | Varies | Buyer | 8% of CMHC premium in ON; 9% in QC — due at closing |
| Appraisal Fee | $300–$500 | Buyer | If required by lender |
| Status Certificate (condo) | $100–$200 | Buyer | Condo purchases only |
Closing Costs as a Percentage of Purchase Price
- Ontario (outside Toronto): 1.5–3.5% — provincial LTT is the primary variable cost.
- Toronto: 2.5–4.5% — combined provincial + municipal LTT makes Toronto one of the highest-cost cities for closing costs in Canada.
- British Columbia: 1.5–3.5% — Property Transfer Tax (PTT) tiered 1–3%; see our BC property transfer tax page. First-time buyer exemption up to $500K.
- Alberta / Saskatchewan: 1–2% — no provincial land transfer tax; land title transfer fee only (~$400–$800).
- Manitoba: 1.5–3% — land transfer tax tiered 0.5–2%; see our Manitoba land transfer tax page.
- Quebec: 2–4% — Welcome Tax (Taxe de bienvenue) tiered 0.5–3%; PST on CMHC premium at 9%.
Closing Costs by Purchase Price in Canada
Closing costs when buying a house in Canada scale with purchase price — primarily because land transfer tax follows a progressive bracket formula. Legal fees, title insurance, and inspection fees remain relatively flat. On a $500,000 purchase in Ontario, total closing costs typically range from $9,500–$11,000; in Toronto, the municipal land transfer tax adds approximately $5,725 on top.
| Purchase Price | Ontario LTT | Toronto MLTT | Legal + Other* | Total (ON) | Total (Toronto) |
|---|---|---|---|---|---|
| $200,000 | $1,725 | $1,725 | $3,000–$4,000 | $4,725–$5,725 | $6,450–$7,450 |
| $300,000 | $2,975 | $2,725 | $3,000–$4,000 | $5,975–$6,975 | $8,700–$9,700 |
| $400,000 | $4,475 | $3,725 | $3,200–$4,200 | $7,675–$8,675 | $11,400–$12,400 |
| $500,000 | $6,475 | $5,725 | $3,200–$4,200 | $9,675–$10,675 | $15,400–$16,400 |
| $650,000 | $9,475 | $8,725 | $3,500–$4,500 | $12,975–$13,975 | $21,700–$22,700 |
| $700,000 | $10,475 | $9,725 | $3,500–$4,500 | $13,975–$14,975 | $23,700–$24,700 |
Closing Cost Calculator for Sellers in Canada
Sellers in Canada pay a different set of closing costs than buyers. The largest seller cost is real estate commission — typically 3.5–5% of the sale price, split between buyer and seller agents. Sellers also pay legal fees ($1,000–$2,000), a mortgage discharge fee ($200–$350), and any prepayment penalty if breaking a fixed-rate mortgage before maturity. Total seller closing costs typically range from 4–7% of the sale price.
Seller Closing Cost Breakdown
| Cost Item | Typical Amount | Notes |
|---|---|---|
| Real Estate Commission | 3.5–5% of sale price | Split between buyer and seller agents; HST applies |
| Legal Fees | $1,000–$2,000 | Mortgage discharge, title transfer, statement of adjustments |
| Mortgage Discharge Fee | $200–$350 | Administrative fee to release mortgage from title |
| Prepayment Penalty | Varies widely | If breaking fixed-rate mortgage — can be thousands; see IRD calculation |
| Property Tax Adjustment | Credit or debit | Depends on whether taxes are prepaid or in arrears |
| Moving Costs | $1,000–$5,000+ | Not a legal cost but a real cash outflow at sale |
Mortgage Prepayment Penalty — Hidden Seller Cost
If you are selling before your mortgage term ends, your lender may charge a prepayment penalty — often the larger of three months' interest or the Interest Rate Differential (IRD). On a large fixed-rate mortgage, the IRD can run into the tens of thousands. Use our mortgage prepayment calculator to estimate your penalty before listing.
Total Upfront Cash — Down Payment Plus Closing Costs
Closing Costs Are Separate from Your Down Payment
Your lender will confirm you have both your down payment AND enough liquid funds to cover closing costs before approving your mortgage. Closing costs cannot be borrowed or added to your insured mortgage — they must be available as separate verified funds.
When budgeting for a home purchase, your total upfront cash requirement includes both your down payment and closing costs. On a $600,000 purchase with 10% down ($60,000), closing costs in Ontario add another $13,000–$16,000, bringing total cash to $73,000–$76,000. In Toronto, add the MLTT to total $80,000–$83,000. Use our mortgage affordability calculator and down payment calculator to plan your full budget.
Total Cash Required — Scenarios
| Purchase Price | Down Payment (10%) | Closing Costs (ON) | Closing Costs (Toronto) | Total Cash (ON) | Total Cash (Toronto) |
|---|---|---|---|---|---|
| $400,000 | $40,000 | $7,500–$9,000 | $12,000–$13,500 | $47,500–$49,000 | $52,000–$53,500 |
| $600,000 | $60,000 | $13,000–$16,000 | $20,000–$23,000 | $73,000–$76,000 | $80,000–$83,000 |
| $800,000 | $80,000 | $18,500–$22,000 | $29,000–$32,500 | $98,500–$102,000 | $109,000–$112,500 |
Legal Fees for Buying a House in Canada
Legal fees are a near-universal closing cost for Canadian home buyers, typically ranging from $1,500–$2,500 for a standard residential purchase. Your real estate lawyer handles the title search and insurance, reviews the Agreement of Purchase and Sale, registers the mortgage, and manages fund disbursement on closing day. Title insurance — usually arranged through your lawyer — adds approximately $250–$350 and protects against title defects, survey errors, and fraud.
Note: legal fees cannot be exact until a lawyer is retained — ranges above reflect typical fees for a straightforward Ontario residential purchase. Complex transactions, remote properties, or power of attorney arrangements may cost more. Shop for quotes; fees vary by firm and region.
CMHC Mortgage Insurance and Closing Costs
CMHC mortgage insurance is not a closing cost paid on closing day — it is added to your mortgage balance. However, the provincial sales tax (PST) on the CMHC premium is due at closing in Ontario (8%) and Quebec (9%) and cannot be added to the mortgage. For example, on a $400,000 insured mortgage with a 3.1% CMHC premium ($12,400), Ontario buyers owe $992 in PST at closing. Use our down payment calculator to estimate your CMHC premium and PST by purchase price and down payment.
PST on CMHC Premium — Due at Closing
In Ontario, PST of 8% on your CMHC insurance premium is payable at closing and cannot be added to your mortgage. In Quebec, PST is 9%. This is a cash cost often overlooked when budgeting.
Who Pays Closing Costs in Canada?
In Canada, buyers and sellers each pay their own distinct set of closing costs — there is no general rule requiring one party to cover the other's costs. Buyers pay land transfer tax, legal fees, title insurance, and home inspection. Sellers pay real estate commission, their own legal fees, and any mortgage prepayment penalty. Unlike some US markets, seller-paid buyer closing costs are not standard practice in Canada.
Who Pays Closing Costs in Ontario?
In Ontario, buyers pay the Ontario land transfer tax (tiered 0.5–2.5%), legal fees, title insurance, and home inspection. Toronto buyers also pay the Toronto land transfer tax (MLTT). Eligible first-time buyers receive up to a $4,000 provincial LTT rebate and up to a $4,475 Toronto MLTT rebate — combined savings of up to $8,475 for Toronto first-time buyers. Sellers pay real estate commission, legal fees, and mortgage discharge fees.
Average Closing Costs in Canada
Average closing costs in Canada range from 1.5–4% of the purchase price for buyers, though the range varies significantly by province and city. In provinces without land transfer tax — Alberta and Saskatchewan — total closing costs typically run 1–2%. In Ontario and Toronto, where both provincial and municipal land transfer taxes apply, buyers typically pay 2.5–4.5% of the purchase price, making them among the highest-cost provinces for closing.
Closing Costs for Commercial and Land Purchases
Closing costs for commercial properties and vacant land in Canada follow similar principles — land transfer tax, legal fees, and title insurance still apply — but additional due diligence costs (environmental assessments, survey work, zoning reviews) can add significantly to the total. Commercial transactions may also involve HST on the purchase price. For an exact estimate, consult a commercial real estate lawyer.
Frequently Asked Questions
The closing cost estimates on this page are for general informational purposes only and do not constitute legal, financial, or professional advice. Actual closing costs vary based on purchase price, province, city, lender, and individual circumstances. Land transfer tax figures are calculated using published government bracket formulas and may not reflect the most current rates. Always confirm exact closing costs with a qualified real estate lawyer before closing.
Sources: Ontario land transfer tax calculation rules · City of Toronto municipal land transfer tax rates · CMHC mortgage loan insurance and minimum down payment rules · FCAC home buying and closing costs · Government of BC — Property Transfer Tax
▶ More tools for your home purchase
- Land Transfer Tax CalculatorExact LTT/PTT by province and price, first-time buyer rebates included
- Mortgage Prepayment CalculatorEstimate your prepayment penalty before selling or refinancing
- Mortgage Affordability CalculatorHow much home can you qualify for in Canada?
- Down Payment CalculatorMinimum down payment and CMHC insurance by purchase price
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