Understanding Canadian Real Estate Closing Costs

Closing costs typically range from 1.5-4% of purchase price. For a $500,000 home, expect $7,500-20,000 in closing costs beyond your down payment. These costs vary significantly by province due to different land transfer taxes.

Primary Closing Costs Breakdown

• Land Transfer Tax (LTT): Ontario 4.15% ($500K home = $20,750); BC 3% on portion over $500K; Alberta has none
• Legal fees: $600-1,200 for lawyer/notary
• Property inspection: $300-500 (highly recommended)
• Title insurance: $200-300 (recommended)
• Property tax adjustment: Seller reimburses you for their paid portion
• Appraisal: $300-500 for mortgage lender (if required)

Province-Specific Differences

Ontario and Toronto have the highest closing costs due to LTT. Alberta and Saskatchewan have no land transfer tax, making closing costs 1.5-2% of purchase price. Quebec uses notaries (cheaper than lawyers, typically $400-600).