Closing Costs Calculator Canada 2026

Estimate buyer and seller closing costs including land transfer tax, legal fees, and adjustments for Canadian real estate transactions.

FAQ

What closing costs should buyers expect in Canada?

Budget roughly 1.5% to 4% of the purchase price — the range depends mainly on your province's land transfer tax. The main items are land transfer tax, legal fees ($1,000-$2,500+), title insurance ($300-$500), home inspection ($300-$600), and adjustments for prepaid property taxes or utilities. You'll also need to budget for moving costs and potentially immediate repairs.

How does land transfer tax work?

Land transfer tax is a provincial tax charged when property ownership changes hands, and it's the largest closing cost for most buyers. Most provinces use tiered rates — Ontario charges 0.5% on the first $55,000, then 1% up to $250,000, and higher rates above that. Toronto adds its own municipal land transfer tax on top of the provincial one, effectively doubling the cost. Alberta and Saskatchewan charge only small registration fees (typically $200-$600) instead.

What are the main closing costs for sellers?

The largest is typically the real estate commission, which is negotiable but commonly ranges from 3% to 5% of the sale price, split between the listing and buyer's agents. Sellers also pay legal fees ($1,000-$2,000), mortgage discharge fees ($200-$400), and potentially a mortgage prepayment penalty if breaking their mortgage before the term ends. GST/HST applies to the commission — an often-overlooked cost when estimating net proceeds.

Do first-time home buyers get any relief on closing costs?

Yes. Ontario rebates up to $4,000 in provincial land transfer tax and Toronto adds up to $4,475 on its municipal tax — combined savings of up to $8,475. BC exempts properties up to $500,000 from the property transfer tax for first-time buyers, and PEI offers a full exemption on properties up to $200,000. Federally, the Home Buyers' Tax Credit provides a $10,000 non-refundable credit (worth up to $1,500 in tax savings), and the FHSA and Home Buyers' Plan can fund both the down payment and closing costs.

Can closing costs be included in the mortgage?

Generally, no — closing costs must be paid from your own funds at the time of closing. The main exception is the CMHC mortgage insurance premium, which can be added to your mortgage balance. Some lenders offer cash-back mortgages that help cover closing costs, but these typically come with a higher interest rate. Keep liquid savings set aside beyond your down payment to cover these expenses.

How does this calculator work?

For buyers, enter your purchase price, property location (province and municipality), and whether you're a first-time home buyer — the calculator estimates land transfer tax, legal fees, title insurance, home inspection, and other common closing costs, applying first-time buyer rebates automatically where available. For sellers, enter your expected sale price and any outstanding mortgage balance — it estimates real estate commission (including GST/HST), legal fees, mortgage discharge fees, and potential prepayment penalties. The result shows your estimated net proceeds after all closing costs are deducted.