Closing Costs in Ontario & Alberta: The Cash You Need Beyond the Down Payment
Here’s a conversation I never want to have two weeks before closing: “Wait, I need how much more?”
Closing costs are the least glamorous part of buying a home and the most commonly underestimated. Budget 1.5–4% of the purchase price on top of your down payment, depending on where you’re buying. Here’s the full list — no surprises.
The big one: land transfer tax (Ontario buyers, brace yourselves)
Ontario charges a provincial land transfer tax on a sliding scale — on a $700,000 home it’s roughly $10,000–$11,000. Buying in Toronto? There’s a second, municipal land transfer tax that roughly doubles it.
The good news for first-time buyers: Ontario rebates up to $4,000 of the provincial tax, and Toronto adds a rebate of up to $4,475 on the municipal side.
Alberta, meanwhile, has no land transfer tax — just government registration fees, typically a few hundred dollars. It’s one of the cheapest provinces in Canada to close in, and a genuine part of why your dollar goes further in Calgary and Edmonton.
The rest of the checklist
- Legal fees & disbursements: $1,500–$2,500. Your lawyer handles title transfer, registration, and the money flow.
- Title insurance: $300–$500, usually arranged through your lawyer.
- Home inspection: $400–$700. Skippable? Technically. Advisable to skip? Almost never.
- Appraisal: $350–$600 — often covered or waived, but budget for it.
- Adjustments: reimbursing the seller for prepaid property taxes or utilities — commonly $500–$2,000.
- PST on mortgage insurance (Ontario): if your mortgage is insured, the premium itself is added to the loan — but Ontario charges 8% PST on it in cash at closing. On a $25,000 premium, that’s $2,000. Alberta charges nothing.
- Moving, utilities, locks, the works: $1,000–$3,000 realistically.
Two worked examples
$700,000 first home in the GTA (outside Toronto), 10% down, insured: land transfer tax ≈ $10,500 minus $4,000 rebate = $6,500; legal ≈ $2,000; inspection + appraisal ≈ $1,000; PST on premium ≈ $2,000; adjustments ≈ $1,000. Ballpark: ~$12,500 on top of your $70,000 down payment.
$450,000 home in Calgary, 10% down, insured: registration fees ≈ $400; legal ≈ $1,800; inspection + appraisal ≈ $1,000; adjustments ≈ $800. Ballpark: ~$4,000. (See what I mean about Alberta?)
Pro tips
- Prove you have it early. Lenders want to see closing costs in your account (usually ~1.5% of purchase price) during approval — not scraped together the week before.
- Keep it liquid. Closing funds locked in investments that take days to settle cause real stress.
- First-time buyers: claim everything. LTT rebates, the federal Home Buyers’ tax credit — small things add up to thousands.
The bottom line
Closing costs aren’t scary once they’re on paper — only when they’re a surprise. When we run your pre-approval, I build the full cash-to-close picture from day one, so the only surprise on closing day is how smooth it feels. Start with your down payment plan here: How Much Down Payment Do You Actually Need?
Want your full cash-to-close number?
Tell me your price range and city, and I’ll send you a complete breakdown — down payment, closing costs, and monthly payment — so you can house-hunt with total confidence.
Or call/text me directly: 647-260-9821
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Tyler Salmon — Mortgage Agent Level 2 (Ontario & Alberta), License #M21003803. This post is general info, not advice — every file is different, so let’s talk yours through.
Every mortgage is personal. Book a free 30-minute call and I’ll give you a straight answer based on your actual numbers — no pressure, no obligation.
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