Closing costs when buying a home in Canada: what they are and how much to plan for
Quick summary
Closing costs are the fees you pay when you buy a home, usually by the time the sale is complete. The FCAC and CMHC both say to plan for roughly 1.5% to 4% of the purchase price. On a $500,000 home, that is about $7,500 to $20,000 in our arithmetic. This is on top of your down payment. Next step: see how to finance a house.
Checked November 11, 2026. Main source: Financial Consumer Agency of Canada: Buying a home (modified October 20, 2025, read November 11, 2026). See all 2 sources.
Key facts
- Plan for
- About 1.5% to 4% of the purchase price
- Source: FCAC, modified October 20, 2025, and CMHC
- Home buyers' amount
- Up to $1,500 non-refundable tax credit
- Source: FCAC, modified October 20, 2025
- Home Buyers' Plan
- Up to $60,000 from RRSPs
- Source: FCAC, modified October 20, 2025
What closing costs include
The FCAC says closing costs are fees you pay when you buy a home, usually by the time the sale is completed. Its examples are home inspection fees, legal fees, property tax adjustments and title insurance. CMHC lists legal or notary fees, transfer fees, disbursements and land transfer taxes.
- Legal or notary fees.
- Land transfer tax, which many provinces and municipalities charge as a percentage of the price (CMHC).
- Home inspection and appraisal fees.
- Property and mortgage loan insurance.
- A land registration fee, based on a percentage of the price (CMHC).
- Prepaid property taxes and utility bills, which may be paid back to the seller (CMHC).
- GST, PST or HST where it applies, on top of closing costs, per CMHC.
Sources: Financial Consumer Agency of Canada: Buying a home (modified October 20, 2025, read November 11, 2026); CMHC: Homebuying step by step (revised edition, 2026 copyright, exact date not stated, read November 11, 2026).
How much to plan for
The FCAC says plan for roughly 1.5% to 4% of the purchase price. CMHC says typically 1.5% to 4%.
Here is our arithmetic, not an official figure. On a $500,000 home, 1.5% is $7,500 and 4% is $20,000. Your range will move with the price, province and how your deal is set up.
| Price | 1.5% | 4% |
|---|---|---|
| $300,000 | $4,500 | $12,000 |
| $500,000 | $7,500 | $20,000 |
| $700,000 | $10,500 | $28,000 |
Sources: Financial Consumer Agency of Canada: Buying a home (modified October 20, 2025, read November 11, 2026); CMHC: Homebuying step by step (revised edition, 2026 copyright, exact date not stated, read November 11, 2026). The dollar figures are our arithmetic.
Programs that can lower your costs
- Home buyers' amount: a non-refundable tax credit of up to $1,500.
- GST/HST new housing rebates.
- Home Buyers' Plan: RRSP withdrawals up to $60,000 for withdrawals after April 16, 2024.
- First Home Savings Account: up to $40,000 saved, with an $8,000 annual limit.
Source: Financial Consumer Agency of Canada: Buying a home (modified October 20, 2025, read November 11, 2026).
Who pays the real estate agent?
The FCAC says using a realtor is optional and the seller usually pays the realtor's fees. Ask any agent how they are paid before you sign.
Source: Financial Consumer Agency of Canada: Buying a home (modified October 20, 2025, read November 11, 2026).
Where closing costs fit in the steps
- Save for a down payment.
- Check programs and incentives.
- Get preapproved for a mortgage, so you know your budget.
- Find your home.
- Arrange financing.
- Plan for closing costs. Budget for these upfront costs in addition to the mortgage.
Source: Financial Consumer Agency of Canada: Buying a home (modified October 20, 2025, read November 11, 2026).
Protect your closing money
Never send closing money because of an email alone. If you are told to use new bank details, call your lawyer on a number you already have first.
Questions people ask
How much are closing costs in Canada?
The FCAC and CMHC both say plan for roughly 1.5% to 4% of the purchase price. Your total depends on your province and purchase.
What are closing costs?
Fees paid when you buy a home, usually by the time the sale is complete. The FCAC lists home inspection, legal fees, property tax adjustments and title insurance.
Are closing costs part of my down payment?
No. The FCAC says to budget for them in addition to the mortgage.
Does the seller pay closing costs?
The FCAC says the seller usually pays the realtor's fees. The buyer's closing costs are listed above.
What help is there for first-time buyers?
The FCAC lists the home buyers' amount of up to $1,500, GST/HST new housing rebates, the Home Buyers' Plan up to $60,000 and the FHSA with up to $40,000 saved.
Is land transfer tax a closing cost?
CMHC lists land transfer taxes among closing costs and says many provinces and municipalities charge them as a percentage of the price.