One should have 1.5-2% (2.5-3% to be on the safe side) of the purchase price for closing costs. The costs will vary depending on the province and city you live in. Below you will find a brief explanation of these costs.


Legal Fees and Disbursements: $1,000 to $1,400. A lawyer or notary will charge a fee for their professional services involved in drafting the title deed, preparing the mortgage and conducting various searches. Disbursements are out-of-pocket expenses incurred, such as registration, photocopying, supplies, etc.

Land Transfer Tax: A one time tax payable to the province (and possibly to your municipality). It is based on the purchase price of your home and rebates are available for first time buyers. See our Land Transfer Tax page for more details.

Closing Adjustments: Cost varies. This refers to the bills or amount that the seller has prepaid such as realty taxes, utility payments, condo maintenance fees, etc. Your lawyer or notary will let you know how much when all searches are completed.

Status Certificate: $100. A status certificate is an important report on the current status of the condominium corporation. It includes the corporation's financial statements, declaration and by-laws.

Fire Insurance: All mortgage lenders require a certificate of fire insurance to be in place from the time you take possession of the home. There are different policies depending on your specific requirement. The cost ranges between $250 and $600 for most properties. Call your insurance professional for a quote.

Home Inspection Fee: Anywhere from $250 to $450. Ensure the home inspector has liability insurance and provides written guarantees for the service provided.

Title Insurance: The coverage contained in the policy provides protection for defects that may have been created in the past, defects revealed by an up-to-date survey, and some potential future risks. One time cost of approximately $225.

Moving Expense: You can rent a truck inexpensively and have your family and friends help. Alternatively, you can hire professional movers which can cost several hundred dollars but save you the headaches. Their cost will depend on how much stuff needs to be moved and how far.

Additional Expense: These include utility hook-ups, any repairs, painting, etc.


Mortgage Default Insurance: If you have less than a 20% down payment, you'll pay a mortgage default insurance premium which can be paid up front in a lump sum or blended in with your mortgage payments. The amount of the premium varies and can range between 0.65% and 2.75% depending upon how much of the purchase price/home value is financed with a mortgage loan.

Mortgage Application and Processing Fee: On high-ratio insured mortgages, the mortgage insurer charges a fee of $165-$185 for applying and processing the file. On new condos, the fee drops to $75.

P.S.T. of 8%: If your mortgage is CMHC or GE Capital insured (less than 20% down payment), there is P.S.T. of 8% in Ontario payable at closing. While the insurance premium can be added to the mortgage amount, P.S.T. must be paid at closing.


New Home Warranty: The cost is approximately $600 and should the builder default or fail to build to an agreed-upon standard, the fund will finish or repair the deficiencies.

G.S.T. of 5%: On the purchase of new condos, GST is payable, but make sure you know who pays this, you or the builder, and who gets the GST new home rebate.

Interim Occupancy Fees: Between the time you are able to move into your new condo and the time it is registered.

Other Fees: Includes utility hook-ups, education levies, discharge fees, etc. Please consult your lawyer regarding these fees.