How Much Should You Budget for Closing Costs?

The purchase price is only the beginning. Closing costs are the one-time expenses you pay to complete a home purchase — and they’re often overlooked until it’s too late to plan. Use this calculator to estimate the full picture before you make an offer.

What Closing Costs Include

Land Transfer Tax — Ontario’s LTT is typically the largest closing cost. First-time buyers may qualify for a rebate of up to $4,000. See our Land Transfer Tax calculator for a full breakdown.

Legal Fees and Disbursements — A real estate lawyer handles the title transfer, mortgage registration, and closing paperwork. Budget $1,500–$2,500 depending on the complexity of the transaction.

Home Inspection — Strongly recommended before any purchase. A qualified home inspector typically charges $400–$700.

Title Insurance — Protects you and your lender against title defects, survey issues, and certain pre-existing bylaw violations. Usually $200–$400 as a one-time premium.

CMHC Premium PST — If your down payment is less than 20%, your mortgage requires default insurance (CMHC/Sagen/Canada Guaranty). The premium is added to your mortgage, but Ontario charges PST on the premium amount — and that PST is due on closing day.

Property Tax / Utility Adjustments — You’ll reimburse the seller for any property taxes or utility costs prepaid beyond the closing date.

The Rule of Thumb

Budget 1.5%–4% of the purchase price for closing costs, in addition to your down payment. On a $700,000 home in Guelph, that’s $10,500–$28,000.

Book a free consultation and we’ll walk through every cost before you make an offer — no surprises on closing day.