Your down payment is not the last cheque you write. Budget roughly 1.5% to 4% of the purchase price on top of it, depending on province and price.

• Land transfer tax — usually the largest single item, and charged twice inside Toronto
• Legal fees and disbursements — commonly $1,500 to $2,500
• Title insurance — typically $250 to $500
• Home inspection — around $400 to $700, before closing
• Appraisal — $300 to $600 where the lender requires one
• Property tax and utility adjustments — reimbursing the seller for anything prepaid past your closing date

Lenders also want to see you have roughly 1.5% of the purchase price available for closing, separate from your down payment. It is a real qualification requirement, not just good practice.

If you put down less than 20%, your mortgage carries default insurance. The premium itself gets added to your mortgage — that part is easy.

But in Ontario, Quebec, Saskatchewan and Manitoba, the provincial sales tax on that premium cannot be added to the loan. It is due in cash on closing day.

On a $700,000 purchase with 10% down, the insurance premium runs to roughly $19,500 — and Ontario’s 8% tax on it means about $1,560 in cash that most first-time buyers have never heard of until their lawyer’s statement arrives. Alberta and BC buyers do not pay it.

This calculator covers all ten provinces, because the differences are large. Ontario and Toronto buyers face the heaviest land transfer burden in the country; Alberta and Saskatchewan charge no land transfer tax at all, only modest registration fees. Quebec’s “welcome tax” is billed after closing rather than at it.

First-time buyer relief also varies. Ontario rebates up to $4,000, Toronto adds up to $4,475 on its municipal tax, and British Columbia offers a full exemption up to a threshold with a phase-out above it. Claiming them is not automatic — your lawyer files for it, so make sure they know you qualify.

Selling as well as buying? The costs on that side are much larger — roughly $58,000 to sell a $750,000 Ontario home and buy again.

Can closing costs be added to your mortgage?

Generally no. Land transfer tax, legal fees and title insurance are paid in cash on closing day, separately from your down payment. This is the single most common reason a purchase gets tight at the last minute — buyers save the down payment and forget the rest.

How much should I budget for closing costs in Ontario?

Plan on 1.5% to 4% of the purchase price. On an $800,000 purchase that is roughly $12,000 to $32,000, and the spread is mostly land transfer tax: the same purchase inside the City of Toronto attracts a second municipal tax that roughly doubles that line.

Do first-time buyers pay closing costs?

Yes, but less. Ontario rebates up to $4,000 of provincial land transfer tax for first-time buyers, and Toronto rebates up to $4,475 more on its municipal tax. The rebates are not automatic — your lawyer claims them, so tell them you qualify.

What are the sneakiest closing costs?

Property tax and utility adjustments. If the seller prepaid taxes past your closing date, you reimburse them at closing, which can be a four-figure surprise nobody mentioned. Add PST on mortgage default insurance in Ontario, which is also cash at closing and not financed with the premium.

Do I pay closing costs if I am refinancing rather than buying?

Some of them. There is no land transfer tax on a refinance because ownership is not changing, but legal fees, title insurance and often an appraisal still apply. Some lenders cover part of it to win the deal, which is worth asking about before you sign.