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.
- Home inspection and appraisal where required
- Legal or notary fees, title search and title insurance
- Land transfer taxes and registration fees
- Property-tax, utility or condo-fee adjustments
- Moving, 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. Each program has eligibility, timing and tax rules. Do not assume a tax credit or withdrawal is available until the current official conditions are checked.
- Keep contribution and withdrawal records
- Confirm whether you meet the program’s first-time-buyer definition
- Coordinate withdrawals with the purchase and closing dates
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.
- Calculate provincial and municipal land transfer tax and check rebate eligibility.
- Price legal or notary work, title insurance, inspection and any appraisal.
- Allow for property-tax, utility and condo-fee adjustments.
- Add moving, service connection and immediate repair costs.
- Keep an emergency reserve after the transaction closes.
Step-by-step
How to use the affordability calculator
- 1Estimate the purchase price with the affordability calculator.
- 2Create a separate closing-cost reserve using 1.5% to 4% only as an initial planning range.
- 3Replace the range with local quotes for legal work, inspection, appraisal and insurance, plus calculated land transfer taxes and adjustments.
- 4Reduce the down payment entered in the calculator if any closing costs would otherwise come from the same cash.
Frequently asked questions
Are closing costs included in the mortgage down payment?
No. The down payment reduces the purchase price; closing costs are additional transaction costs that usually require separate cash.
Is 1.5% to 4% an exact quote?
No. It is a Government of Canada planning range. Location, property type, land transfer tax and the services required can move the actual total outside it.
Does the calculator include Toronto land transfer tax?
The Canada affordability calculator does not. Use the Toronto rent-vs-buy calculator for its standard Ontario and Toronto land-transfer-tax estimate, then confirm the transaction with official calculators and a lawyer.
Try your own numbers
Canada House Affordability Calculator
Enter income, debts, down payment, interest rate and property costs, then select Calculate estimate to reveal the result and breakdown.
Related Canadian home-buying guides
Official sources
- Financial Consumer Agency of Canada: buying a home and closing costs
- Ontario land transfer tax
- City of Toronto municipal land transfer tax
Sources reviewed October 6, 2026. Rules and lender policies can change.