Closing Costs in Canada: Land Transfer Tax, Legal Fees and Everything Else

By Jordan Ellis · Published August 2, 2026 · Reviewed September 14, 2026

Quick Answer

Canadian closing costs typically run 1.5%–4% of the purchase price — roughly $9,000–$24,000 on a $600,000 home. The biggest item is land transfer tax (varies by province, doubled in Toronto), followed by legal fees ($1,000–$2,500), title insurance, appraisal, and inspection. First-time buyers in Ontario, BC, and PEI get rebates worth up to $4,000–$8,000.

The big one: land transfer tax

LTT is the largest closing cost for most Canadian buyers, and it’s wildly provincial:

Ontario: graduated 0.5%–2.5% — ~$8,475 on $600,000. Toronto doubles it with a municipal LTT. First-time buyer rebates: up to $4,000 provincial + $4,475 Toronto.
BC: “Property Transfer Tax” — 1% on the first $200,000, 2% to $2M, 3% above: ~$10,000 on $600,000. First-time buyers pay no tax on the first $500,000 of homes up to $835,000 (a saving of up to $8,000).
Quebec: “welcome tax” (droits de mutation) — 0.5%–1.5% depending on municipality.
Alberta & Saskatchewan: no LTT, just registration fees: in Alberta $50 plus $5 per $5,000 of value on both the title and the mortgage (about $1,300 on a $650,000 home), in Saskatchewan about 0.3% of value.

The rest of the bill

Legal fees and disbursements: $1,000–$2,500. Mandatory — only a lawyer/notary can register the title transfer. Shop around; fees vary.
Title insurance: $250–$400 one-time. Protects against title fraud and survey issues; most lenders require it.
Home inspection: $400–$600. Technically optional, practically essential on resale homes.
Appraisal: $300–$500 if the lender requires one (often waived with insured mortgages).
Property tax/utility adjustments: reimbursing the seller for prepaid amounts — a few hundred to a couple thousand depending on closing date.
GST/HST on new builds: 5% GST (13% HST in Ontario), usually baked into builder pricing, with rebates that can be much larger for first-time buyers (see the new housing rebate guide).
CMHC premium tax: if you have an insured mortgage, Ontario, Quebec, and Saskatchewan charge provincial sales tax on the insurance premium, payable in cash at closing (the premium itself goes into the mortgage).

How to pay less

Claim every rebate. First-time buyer LTT rebates (Ontario, BC, PEI), the federal First-Time Home Buyers’ Tax Credit ($1,400 for 2026), and the FHSA for the down payment itself.
Compare lawyers. Quotes vary $500+ for identical work.
Close late in the month to reduce interest adjustments.
Ask about appraisal waivers if your down payment is solid.

The bottom line

Closing costs are why “I have the 10% down payment” isn’t “I’m ready to buy.” Budget the down payment plus 1.5%–4% — or plus 3%–5% in Toronto and Vancouver — and keep it in cash, not invested. For the full affordability picture including these costs, see our affordability guide and run scenarios in the mortgage calculator.

Official sources

Rules and dollar limits change. Confirm current amounts with the official pages below before you act · Last reviewed September 14, 2026.

Land transfer tax (Government of Ontario)
Property transfer tax (Government of British Columbia)

Frequently Asked Questions

How much should I budget for closing costs in Canada?

Budget 1.5%–4% of the purchase price on top of your down payment. On a $600,000 home that's $9,000–$24,000, with land transfer tax driving most of the variation — Toronto buyers pay both provincial and municipal LTT, pushing them to the top of the range.

How much is land transfer tax in Ontario?

Ontario's provincial LTT is graduated: 0.5% on the first $55,000 up to 2.5% above $2 million — about $8,475 on a $600,000 home. Toronto adds a matching municipal tax, doubling it to ~$16,950. First-time buyers get rebates of up to $4,000 provincial and $4,475 municipal.

Which closing costs can I avoid or reduce?

First-time buyer rebates (Ontario, BC, PEI) are the biggest lever. You can also shop lawyers (fees vary by hundreds of dollars), skip optional add-ons, and time the closing to minimize prepaid adjustments. LTT and government registration fees are fixed.

Is GST/HST a closing cost?

On new construction, yes — 5% GST applies (13% HST in Ontario) on the purchase price, though most builders include it in the listed price. New-housing rebates offset part of it, and first-time buyers can get back all of the GST (or federal part of the HST) on new homes up to $1 million, reduced up to $1.5 million. Resale homes are exempt from GST/HST.

Do I pay closing costs on a refinance?

Yes, though smaller: legal fees ($800–$1,500), appraisal if required (~$300–$500), discharge fees, and potentially a prepayment penalty on your existing mortgage — usually the biggest cost by far. See our refinance guide for the break-even math.