Closing Day

Closing costs can vary depending on your home’s purchase price and where you are located. You can generally expect your closing costs to be around 2% to 4% of the home’s sales price. Below is a list of mandatory closing costs.

• Land Transfer Tax:  Calculated as a percentage of the purchase price of your home, all provinces have a Land Transfer Tax (LTT) payable on closing, with the amount varying in each province. Some cities, such as Toronto, also have a municipal LTT.
• Legal Fees and Disbursements:  You can expect to incur a minimum of $1000 (plus GST/HST) on legal fees, which account for the preparation and recording of official documents; drafting the title deed, preparing the mortgage, and conducting the various searches.  The disbursements, on the other hand, are out-of-pocket expenses incurred, such as registrations, searches, supplies, etc., plus HST.
• Title Insurance:  Today, most lenders require title insurance to protect against losses in the event of a property ownership dispute. This is purchased through your lawyer/notary and costs $200 - $300. ​
• PST on CMHC insurance:  Though CMHC insurance itself is financed through the mortgage, PST on the insurance must be paid in cash at the time of close. There is P.S.T. of 8% in Ontario.  The average cost is $400 to $800.