Due in cash, on closing day.
The largest closing cost in most Canadian purchases — and the one that cannot be rolled into your mortgage.
Provincial rates from each province’s finance ministry; Toronto rates from the City of Toronto by-law; BC thresholds from the First Time Home Buyers’ Programme.
| Legal fees and disbursements | $1,500 – $2,500 |
| Title insurance | $250 – $500 |
| Home inspection | $400 – $700 |
| Tax and utility adjustments | Varies |
Budget 1.5% to 4% of the purchase price for closing costs in total. Lenders will ask you to prove you have it.
Who charges what
There is no federal land transfer tax. Each province sets its own, some municipalities add a second one on top, and four provinces plus all three territories charge nothing beyond a nominal registration fee. Toronto is the outlier that catches buyers out: it levies a municipal tax that roughly doubles the Ontario bill.
| Province or territory | Tax | First-time buyer relief |
|---|---|---|
| Ontario | 0.5% – 2.5%, five brackets | Up to $4,000 |
| Toronto, additional | Mirrors the provincial brackets | Up to $4,475 |
| British Columbia | 1% – 5%, four brackets | Full under $500,000, partial to $860,000 |
| Quebec | 0.5% – 1.5%, municipal surtaxes above | Credit up to $5,875 at tax time |
| Manitoba | 0% – 2%, five brackets | None |
| Nova Scotia | Municipal, 0.5% – 1.5% | Varies by municipality |
| New Brunswick | Flat 1% | None |
| Prince Edward Island | Flat 1% | Exempt at or under $200,000 |
| Alberta | None — registration fee only | n/a |
| Saskatchewan | None — title fee about 0.4% | n/a |
| Newfoundland and Labrador | None — nominal fee | n/a |
| NWT, Yukon, Nunavut | None — nominal fee | n/a |
Ontario and Toronto brackets
Toronto’s municipal tax mirrors these up to $3,000,000
| Portion of the price | Rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 – $250,000 | 1.0% |
| $250,000 – $400,000 | 1.5% |
| $400,000 – $2,000,000 | 2.0% |
| Over $2,000,000 | 2.5% |
Buying in Toronto means paying both. On a $900,000 home that is roughly $13,950 provincially and $13,950 municipally — about $27,900 before rebates, all of it in cash on closing day.
Who counts as a first-time buyer
Broadly: you have never owned a home anywhere in the world, and neither has your spouse while you have been together. You must be 18 or older, a citizen or permanent resident, and you must occupy the home as your principal residence — usually within nine months of closing. Quebec’s relief arrives as a credit on your tax return rather than at closing.
Limits of this estimate
- Toronto’s luxury brackets above $3,000,000 are not modelled.
- Montreal and other Quebec municipalities add surtax brackets above roughly $500,000; only the base provincial rate is shown.
- Nova Scotia’s rate is municipal — the figure uses the Halifax rate of 1.5%.
- BC’s 20% foreign buyer tax and the federal ban on purchases by non-Canadians are out of scope.