Key takeaways
- Plan for closing costs of about 1.5% to 4% of the price, paid in cash on closing day
- Land transfer tax is the largest cost in Ontario, BC, Quebec, Manitoba, New Brunswick, Nova Scotia and PEI
- Toronto charges its own land transfer tax on top of Ontario’s, so you pay twice
- Alberta, Saskatchewan and the territories have no land transfer tax, only registration fees
- In Ontario, Quebec and Saskatchewan, sales tax on mortgage insurance must be paid in cash at closing
What are closing costs?
When you buy a home, the down payment is not the only cash you need. On closing day you also pay:
- Land transfer tax (called property transfer tax in BC and transfer duties or “welcome tax” in Quebec).
- Legal fees for the lawyer (or notary in Quebec) who handles the transfer, plus disbursements such as title searches and registration.
- Title insurance, which most lenders require.
- Adjustments: you repay the seller for property tax or condo fees they already paid for days after closing.
- Sales tax on mortgage default insurance in Ontario, Quebec and Saskatchewan, if your down payment is under 20%.
- Other costs such as a home inspection, appraisal, moving and setting up utilities.
Lenders often ask you to show that you have about 1.5% of the price saved for closing costs on top of your down payment.
Land transfer tax by province (October 2026)
| Province | How it is charged | First-time buyer relief |
|---|---|---|
| Ontario | 0.5% to $55,000; 1% to $250,000; 1.5% to $400,000; 2% to $2 million; 2.5% above | Refund up to $4,000 |
| Toronto (extra) | Same as Ontario up to $3 million, then 4.4% to $4M, 5.45% to $5M, 6.5% to $10M, 7.55% to $20M, 8.6% above (from April 1, 2026) | Rebate up to $4,475 |
| British Columbia | 1% to $200,000; 2% to $2 million; 3% above; plus 2% more on residential value over $3 million | Exemption up to $8,000 (homes up to $835,000, phased out by $860,000); newly built homes up to $1.1 million exempt |
| Quebec | Municipal transfer duties: 0.5%, 1% and 1.5% brackets (Montreal and some cities add higher brackets up to 4%) | None province-wide; some cities offer programs |
| Manitoba | 0% to $30,000; 0.5% to $90,000; 1% to $150,000; 1.5% to $200,000; 2% above | None |
| New Brunswick | 1% of the greater of price or assessed value | None |
| Nova Scotia | Municipal deed transfer tax, up to 1.5% (Halifax: 1.5%) | Some municipalities |
| Prince Edward Island | 1% of the greater of price or assessed value | Exempt |
| Alberta | No tax. Land titles fee: $50 + $5 per $5,000 of value; same formula for the mortgage | Not needed |
| Saskatchewan, NL, territories | No land transfer tax; land titles or registration fees only | Not needed |
Details and conditions for the rebates are on our first-time buyer rebate calculator.
How the calculator works
- It applies your province’s transfer tax to the full price. In Toronto it adds the municipal tax; in Montreal it uses the city’s brackets.
- If you tick first-time buyer, it subtracts the Ontario refund, Toronto rebate, BC exemption or PEI exemption.
- If your down payment is under 20%, it works out the mortgage insurance premium and adds the provincial sales tax on it (8% in Ontario, 9% in Quebec, 6% in Saskatchewan). The premium itself goes on your mortgage, but the tax is paid in cash.
- It adds your estimates for legal fees, title insurance, inspection and other costs.
Quebec bracket limits are indexed every January and each city can add brackets above $500,000. The result for Quebec is an estimate; check your city’s rate page or ask your notary.
Worked example: Toronto, first-time buyer
You buy an $800,000 condo in Toronto with 10% down.
- Ontario land transfer tax: $275 + $1,950 + $2,250 + $8,000 = $12,475, minus the $4,000 refund = $8,475
- Toronto land transfer tax: also $12,475, minus the $4,475 rebate = $8,000
- Mortgage insurance: 3.10% of $720,000 = $22,320 (added to the mortgage), plus 8% Ontario sales tax = $1,786 in cash
- Legal fees of about $1,500
- Total closing costs: about $19,761, plus your $80,000 down payment
The same home in Mississauga or Brampton has no city land transfer tax, so it costs about $8,000 less to close. See Toronto and Mississauga guides.
Next steps
- Check how much you can borrow with the mortgage affordability calculator.
- See the full premium and tax on default insurance with the mortgage insurance tax calculator.
- Save for closing costs tax-free in a First Home Savings Account (FHSA).
- Not a citizen or permanent resident yet? Check the foreign buyer rules first.
Common questions
How much are closing costs in Canada?
Usually about 1.5% to 4% of the purchase price. In Toronto, where you pay two land transfer taxes, they can be higher. In Alberta, with no land transfer tax, they are often under 1%.
Can I add closing costs to my mortgage?
Generally no. Land transfer tax, legal fees and the sales tax on mortgage insurance are paid in cash on or before closing. Only the mortgage insurance premium itself can be added to the loan.
Who pays land transfer tax, the buyer or the seller?
The buyer. Your lawyer or notary collects it from you and pays it when the transfer is registered.
Do I pay GST or HST on a home?
Not on a resale home. On a newly built home, GST or HST usually applies, but it is often included in the price, and new-home rebates may apply. Ask the builder what the price includes.
Are closing costs tax-deductible?
Not for a home you live in. If you buy a rental property, some costs may be added to the cost of the property. Ask a tax professional.