Closing Costs in Canada: The Complete 2026 Guide by Province

First-time buyers often focus all their savings on the down payment and are blindsided by the additional costs due at closing. In Canada, closing costs typically add 1.5% to 4% of the purchase price on top of your down payment — and in Toronto, they can easily exceed 5%. Here's every cost, broken down by province.

Overview: How Much to Budget

As a rule of thumb, budget for closing costs equal to 1.5–4% of your purchase price. The range is wide because land transfer tax — the largest single closing cost — varies dramatically by province and municipality.

These ranges exclude CMHC insurance (if applicable — it's added to your mortgage, not paid upfront, except for the provincial premium tax in Ontario, Quebec, and Manitoba) and moving costs.

Land Transfer Tax by Province

Land transfer tax (LTT) — charged when property title is transferred from seller to buyer — is the most significant closing cost in most provinces. The tax is calculated as a percentage of the purchase price, with different rates applied to different price brackets.

Ontario Land Transfer Tax

Ontario's LTT rates are tiered:

• 0.5% on the first $55,000
• 1.0% on $55,001 to $250,000
• 1.5% on $250,001 to $400,000
• 2.0% on $400,001 to $2,000,000
• 2.5% on amounts over $2,000,000

On a $750,000 purchase in Ontario: approximately $12,950 in provincial LTT.

British Columbia Property Transfer Tax (PTT)

BC's PTT rates:

• 1.0% on the first $200,000
• 2.0% on $200,001 to $2,000,000
• 3.0% on amounts over $2,000,000
• Additional 2% on residential property over $3,000,000

On a $750,000 purchase in BC: approximately $13,000 in PTT.

Note: BC's Foreign Buyer Tax (additional 20% PTT) applies to non-Canadian buyers in designated regions. Residents and Canadian citizens are not affected.

Alberta

Alberta does not have a provincial land transfer tax — a significant advantage for buyers. Instead, Alberta charges land title transfer fees, which are a fraction of the cost:

• Approximately $400–$600 on a $750,000 purchase

This makes Alberta one of the most affordable provinces for closing costs, with total closing costs often well under 2%.

Quebec (Welcome Tax / Taxe de bienvenue)

Quebec's "Welcome Tax" rates:

• 0.5% on the first $59,000
• 1.0% on $59,001 to $295,900
• 1.5% on $295,901 to $534,200
• 2.0% on $534,201 to $1,068,300
• 2.5% on amounts over $1,068,300

On a $750,000 purchase in Quebec: approximately $9,855 in Welcome Tax.

Other Provinces

• Manitoba: LTT ranges from 0.5% to 2.0%. Approximately $9,000 on a $750K home.
• Nova Scotia: Municipal Deed Transfer Tax typically 1.0–1.5%. Approximately $7,500–$11,250 on a $750K home.
• New Brunswick, PEI: Transfer taxes of approximately 0.5–1.0%.
• Saskatchewan: Land title transfer fees (like Alberta), not a percentage tax. Very low cost.
• Newfoundland: Low provincial land transfer fees.

Toronto's Double Land Transfer Tax

Toronto is uniquely burdened with a Municipal Land Transfer Tax (MLTT) on top of Ontario's provincial LTT. The MLTT rates are nearly identical to the provincial LTT, effectively doubling the land transfer burden for Toronto buyers:

• 0.5% on the first $55,000
• 1.0% on $55,001 to $400,000
• 2.0% on $400,001 to $2,000,000
• 2.5% on amounts over $2,000,000

On a $750,000 Toronto purchase: Provincial LTT of $12,950 + Municipal LTT of approximately $11,725 = $24,675 in combined land transfer taxes — before any first-time buyer rebates. This is one of the primary reasons Toronto buyers face dramatically higher closing costs than buyers in comparable markets.

Legal Fees

You need a real estate lawyer (or notary in Quebec/BC) to review the purchase agreement, conduct a title search, handle the mortgage registration, and transfer title. Expect to pay:

• Legal fees: $1,500–$2,500 for most standard residential purchases
• Disbursements (land registry search fees, courier costs, etc.): $300–$600
• Total: approximately $1,800–$3,000

Always hire a lawyer who specializes in real estate transactions. The cost of a general practitioner who dabbles in real estate can be a false economy — errors in title transfer or mortgage registration can be extremely costly to fix.

Title Insurance

Title insurance protects you (and your lender) against losses from defects in the property's title that aren't discovered during the title search — things like undisclosed encumbrances, survey errors, or title fraud. It's a one-time premium:

• Cost: Typically $250–$400 for a $750,000 home (through providers like FCT or Stewart Title)
• Required by most lenders as a condition of the mortgage
• Lasts as long as you own the property (not an annual premium)

Home Inspection

A home inspection is technically optional but should be considered essential for resale homes. A qualified inspector examines the home's structure, roof, foundation, electrical, plumbing, and HVAC systems and provides a detailed written report.

• Cost: $400–$600 for a standard single-family home; $500–$800 for larger homes or those requiring specialist inspections (e.g., pool, septic system)
• Timing: During the conditional period (typically 3–5 business days) of your offer

In competitive markets, some buyers waive the inspection condition to strengthen their offer. This is a significant risk — a missed foundation issue or aging roof can cost $30,000–$80,000. If you must compete without a formal inspection condition, consider a pre-offer inspection before submitting your bid.

Other Closing Costs to Budget For

• CMHC provincial premium tax (Ontario: 8% of the CMHC premium, paid at closing, not added to mortgage): On a $22,800 CMHC premium, the Ontario tax is $1,824.
• Property tax adjustment: If the seller has prepaid property taxes, you'll owe them a prorated reimbursement. On closing day (e.g., September 1), you'd owe approximately 4 months of property taxes. Budget $2,000–$5,000 for this adjustment on a typical home.
• First year's home insurance: Lenders require proof of home insurance before funding. Expect $1,200–$2,500/year for a single-family home in urban Ontario or BC; lower in Alberta. Many insurers require full annual payment upfront.
• Interest adjustment: If your mortgage closes on a day other than the 1st of the month, you'll owe a few days of interest to align with your regular payment schedule. Typically $200–$800.
• New home HST: For new construction over certain thresholds, HST/GST may apply. This is usually negotiated into the purchase price but needs to be confirmed with your lawyer.
• Moving costs: Budget $1,500–$5,000 for professional movers for a local move; $5,000–$15,000+ for a long-distance move.
• Utility hookups and immediate repairs: Budget $1,000–$3,000 for changing locks, utility deposits, and any immediate minor repairs revealed in the inspection.

First-Time Buyer Rebates by Province

Several provinces offer land transfer tax rebates to first-time buyers that can substantially reduce your closing costs:

In Ontario, the $4,000 provincial rebate covers the full LTT on homes up to approximately $368,000. For a $750,000 Ontario home, the first-time buyer saves $4,000 but still owes approximately $8,950 in provincial LTT. In Toronto, the combined rebate of $8,475 is a meaningful saving.

In BC, the full PTT rebate on a $750,000 home saves $13,000 — eliminating the largest single closing cost entirely for first-time buyers below the threshold. This is one of the most generous first-time buyer programs in Canada.

Sample Closing Cost Table: $750,000 Home

The table makes the geographic disparity stark. A Toronto buyer purchasing the same $750,000 home as an Alberta buyer needs approximately $17,700 more cash on hand at closing — almost entirely due to the double land transfer tax. This is why Toronto first-time buyers need to budget so carefully for closing costs, not just the down payment.