Closing costs shouldn't take you by surprise.
Your down payment is only part of the cash you may need before the keys are yours. Knowing the common closing expenses in advance can help you plan with confidence and avoid last-minute surprises.
Closing costs vary by province, municipality, lender, property type and legal requirements.
Common costs that can appear before or on closing day
These are the core categories every buyer should ask about, written cautiously so you know what to confirm with your lawyer and lender.
Your lawyer may adjust for amounts the seller has already paid that benefit you after closing, such as property taxes, utilities or other prepaid items. These commonly appear on the statement of adjustments.
Many provinces and municipalities impose taxes when real estate changes hands. The calculation and any rebates depend on where the property is located and your circumstances.
Your lender will normally require acceptable property insurance to be in place by closing. Coverage protects both your home and the lender's security interest in the property.
Optional creditor or individual insurance may help protect your mortgage obligations if death, illness or disability affects your household. Coverage, eligibility and benefits are always subject to policy terms.
If you hire a home inspector, the inspection fee is normally paid before closing. A qualified inspection can help identify visible issues with the structure and major systems before you commit.
A lender may require an appraisal to support the property value used for mortgage approval. Whether you pay the fee directly, indirectly or not at all depends on the lender and mortgage program.
Some transactions may require an up-to-date property survey or related evidence showing boundaries, improvements and encroachments. Your lawyer and lender will tell you what is required for your property.
Title insurance is common in Canadian real estate closings and can protect against specified title and ownership risks. Your lawyer can explain the policy, exclusions and whether it is appropriate for your transaction.
Taxes may apply to legal, appraisal, inspection and other professional services. Tax treatment of the property purchase itself varies by property type and transaction, so confirm the details with your lawyer or tax professional.
Your lawyer's invoice can include professional fees plus registration, searches, title insurance, courier charges and other disbursements. Ask for an estimate early so you can budget more accurately.
Your closing-cost conversation checklist
Use this as a quick planning list with your mortgage professional and lawyer. Confirm which items apply to your purchase and how much cash you should have available.
Review my purchase with meProperty tax, utilities and seller-paid items
Plus any municipal land transfer tax, if applicable
Ask your lawyer for an estimate
Effective by closing, as required by the lender
Confirm which items your lender or lawyer requires
Review coverage and exclusions with your lawyer
Consider life, disability and other household protection needs
Keep funds accessible and follow your lawyer's transfer instructions
Don't wait until the week of closing.
Once your offer is accepted, start a closing-cost conversation early. Your lawyer can provide the legal and tax-specific figures, while your mortgage professional can help confirm lender requirements and cash-flow timing.
- •Purchase price and expected closing date
- •Province and municipality of the property
- •Down payment source and amount
- •Whether you are a first-time buyer
- •New build vs. resale
- •Lender conditions requiring appraisal or insurance
Have a purchase coming up?
I can help you understand the mortgage side of your closing, what your lender may require, and what to confirm with your lawyer before the final funds are due.
General information only. This page is not legal, tax, insurance or financial advice. Costs, taxes, rebates, lender requirements and insurance terms vary by transaction and jurisdiction. Confirm exact figures and requirements with your lawyer, lender, insurer and/or qualified tax professional before closing.
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