Worked Examples and Checklists
Closing costs checklist for Canadian buyers and sellers: every item, by stage
A stage-by-stage checklist of closing costs when buying or selling a home in Canada, with province-specific items, who pays each one and how to estimate it.
Closing costs are everything you pay beyond the price (for a buyer) or deduct from the price (for a seller) to complete a home sale. For a Canadian buyer, the main items are land transfer tax, legal or notary fees, title insurance, inspection, adjustments and, for a new home, GST/HST. For a seller, they are commission plus sales tax, legal fees and the mortgage payout. Work through the list below in order, put a dollar figure on every line that applies to you, and compare the total with the cash you have available at least a month before closing.
This is the overview for the Worked Examples and Checklists group. The interactive version is the closing costs checklist tool. All amounts are illustrative.
Buyer checklist
| Stage | Item | How to estimate | Province notes |
|---|---|---|---|
| Before the offer | Deposit | Set in the offer; counts toward the price | Paid within the time stated, often 24 hours or a few days |
| Before the offer | Home inspection | Quote from an inspector | Condo buyers may also want a document review |
| Before the offer | Land transfer tax | Provincial brackets; calculator | Toronto adds MLTT; Quebec billed later by the municipality; none in Alberta and Saskatchewan |
| After acceptance | Legal or notary fees | Written quote | Notary in Quebec; lawyer or notary public in BC |
| After acceptance | Title insurance | Included in many lawyers' quotes | Common outside Quebec; optional but widely used |
| After acceptance | Condo status certificate or strata documents | Fee set by the corporation within provincial limits | Ontario status certificate; BC Form B; Quebec co-ownership documents |
| After acceptance | Appraisal | Lender's requirement | Sometimes paid by the lender |
| After acceptance | Survey or real property report | Seller often provides | Alberta sellers usually provide an RPR; Quebec sellers a certificate of location |
| Closing | Sales tax on mortgage default insurance premium | Premium x provincial rate | Ontario, Quebec and Saskatchewan; cash only, cannot be added to the mortgage |
| Closing | Property tax and utility adjustments | Seller's prepaid amount for the days after closing | Shown on the statement of adjustments |
| Closing | GST/HST on a new home | Price x rate less rebates | See new build vs resale tax math |
| After closing | Moving, utilities set-up, insurance | Quotes | Home insurance usually required by the lender on closing day |
Seller checklist
| Stage | Item | How to estimate | Notes |
|---|---|---|---|
| Before listing | Commission and sales tax | Rate x price x (1 + tax rate); calculator | Negotiate before signing; see how to negotiate |
| Before listing | Staging, repairs, cleaning, photos | Quotes | Some brokerages include photos |
| Before listing | Mortgage payout statement | Ask your lender | Shows any prepayment charge and discharge fee |
| Before listing | Survey, certificate of location, RPR | Quote from a surveyor | Required by custom in Quebec and Alberta |
| After acceptance | Legal or notary fees | Written quote | Includes discharge registration |
| Closing | Property tax adjustment | You get back prepaid tax for days after closing | Or you owe it if taxes are in arrears |
| Closing | Non-resident withholding | Section 116 certificate, otherwise buyer withholds 25% of price | Applies only to non-resident sellers |
| After closing | Tax reporting | Principal residence designation on your return | Flipping rules if owned less than 12 months; see tax on selling |
A quick budget for a buyer (illustrative)
A repeat buyer purchases a $650,000 resale townhouse in Ottawa with 20% down:
| Item | Amount |
|---|---|
| Ontario land transfer tax: $4,475 + 2% x $250,000 | $9,475 |
| Legal fees, disbursements and title insurance (quote) | $2,400 |
| Home inspection (quote) | $550 |
| Property tax adjustment (seller prepaid two months) | $900 |
| Moving | $1,800 |
| Total cash beyond the down payment | $15,125 |
With only 10% down, the mortgage would be default insured. In Ontario, 8% provincial sales tax on the premium is payable in cash on closing; on a premium of $18,135 (illustrative), that adds $1,451. A first-time buyer would deduct the $4,000 land transfer tax refund.
A quick budget for a seller (illustrative)
The seller of the same townhouse:
| Item | Amount |
|---|---|
| Commission 4% of $650,000 | $26,000 |
| HST 13% on commission | $3,380 |
| Legal fees and discharge | $1,300 |
| Pre-listing cleaning, paint and photos | $2,500 |
| Total selling costs | $33,180 |
From $650,000, that leaves $616,820 before paying off the mortgage. The full method is in the seller's net proceeds worked example.
Where to go next
- Comparing cities: buyer closing costs in Toronto, Vancouver and Quebec
- Choosing how to sell: full service, flat fee or private sale
- Moving up or down: the costs of buying before you sell
- New homes: new build vs resale tax math
- Negotiation: how to negotiate realtor commission
Frequently asked questions
How much should I budget for closing costs in Canada?
Add up the items above for your province. Land transfer tax is the variable that changes most: zero in Alberta, high in Toronto. A common rule of thumb is a few percent of the price, but your own list is more reliable.
When do I pay closing costs?
Most are paid to your lawyer or notary a few days before closing, by bank draft or wire. Inspection and some deposits are paid earlier, and Quebec's welcome tax later.
Can the seller pay my closing costs?
You can negotiate a credit in the offer, but your lender must approve it and it may affect the mortgage amount. Ask the lender before you offer.
What is a statement of adjustments?
It is the lawyer's or notary's summary of the price, deposit, adjustments for prepaid taxes and fees, and the balance due on closing.
Sources
- Financial Consumer Agency of Canada — buying a home and closing costs
- CMHC — home buying guide and mortgage loan insurance
- Ontario Ministry of Finance — land transfer tax and sales tax on insurance premiums
- Canada Revenue Agency — section 116 certificates and principal residence reporting
