Canada Home-Buying Closing Costs Checklist

Costs to budget before closing

Closing costs are paid in addition to the down payment. Their exact amount depends on the province, municipality, property and transaction.

• 1Home inspection and appraisal where required
• 1Legal or notary fees, title search and title insurance
• 1Land transfer taxes and registration fees
• 1Property-tax, utility or condo-fee adjustments
• 1Moving, immediate repairs and service connections

Example planning allowance

For a $600,000 purchase, a broad 1.5% to 4% planning range is $9,000 to $24,000. This is not a quote: local land transfer taxes can materially change the total, especially where both provincial and municipal tax apply. Ask a local lawyer or notary for a transaction-specific estimate.

First-time-buyer items to review

Eligible buyers may want to review the FHSA, the RRSP Home Buyers’ Plan and the federal home buyers’ amount. CRA currently permits up to $60,000 per eligible participant under the HBP, and an eligible buyer can use an HBP withdrawal and a qualifying FHSA withdrawal for the same home. Each program has separate eligibility, timing, documentation and tax rules.

• 3Keep contribution and withdrawal records
• 3Confirm whether you meet the program’s first-time-buyer definition
• 3Coordinate withdrawals with the purchase and closing dates
• 3Budget future HBP repayments; an HBP withdrawal is not a rebate

Worked budget: $750,000 purchase

For a $750,000 purchase, the Government of Canada's broad 1.5% to 4% planning range equals $11,250 to $30,000. Treat that as a starting reserve, not a prediction. A Toronto purchase can include both Ontario and municipal land transfer tax, while another location may have a different tax structure.

Assume the buyer has $100,000 in total available cash and wants to retain a $20,000 closing-cost reserve. Only $80,000 should be entered as the down payment. Entering the full $100,000 would overstate the cash available for the purchase.

A step-by-step checklist before making an offer

Ask a lawyer or notary and the professionals involved in the transaction for location-specific estimates. Record whether each amount is due before the offer, at closing or after possession.

• 5Calculate provincial and municipal land transfer tax and check rebate eligibility.
• 5Price legal or notary work, title insurance, inspection and any appraisal.
• 5Allow for property-tax, utility and condo-fee adjustments.
• 5Add moving, service connection and immediate repair costs.
• 5Keep an emergency reserve after the transaction closes.

Do not double-count first-time-buyer funds

An FHSA or HBP withdrawal can supply part of the buyer's cash, but it does not reduce the home's price or make closing costs disappear. Build one sources-and-uses table: list available cash, qualifying FHSA funds and the planned HBP withdrawal once on the funding side, then list the down payment, closing costs and retained emergency reserve on the uses side.

For example, a buyer with $45,000 in cash, a $25,000 qualifying FHSA withdrawal and a $30,000 HBP withdrawal has $100,000 of gross funding—not $100,000 plus a second copy of those registered-account amounts. If $18,000 is reserved for closing costs and $12,000 remains as an emergency fund, only $70,000 is available for the down payment entered in the affordability calculator.

Frequently asked questions