Closing costs
Know what to plan for.
There is more to budget for than the purchase or sale price. This guide brings the likely costs together, so you can understand what may be coming and leave room for it in your plans.
Last reviewed: August 19, 2026
Some costs can be calculated early. Others depend on the property, the price, your mortgage and the professionals involved.
The goal is not to predict every dollar from the beginning. It is to understand what may apply, when the money will be needed and who can give you the final number. I’ll help you keep track of the pieces and make sure the right questions are being asked along the way.
This guide is kept online so that changing rates, programs and approximate costs can be updated in one place.
Where are you starting?
Showing everything, for buying and selling.
Buying
A little planning goes a long way.
When you buy a property, you need to plan for more than the down payment. Some costs arise while you are doing your due diligence, while others are included in the funds your lawyer will need before closing.
As an early planning guideline, the Financial Consumer Agency of Canada suggests allowing approximately 1.5% to 4% of the purchase price for upfront and closing costs. Your actual total will depend on the property, purchase price and financing.
Some of the amounts in this guide are expenses. Others, including the deposit and down payment, form part of the purchase price but still need to be available at the right time.
Part of the purchase price
The deposit and down payment are money you are already paying toward the property. Count them once, not twice.
Costs of completing the purchase
These are separate expenses involved in completing the transaction, including land transfer tax, legal work, title insurance and applicable mortgage costs.
Closing adjustments
These amounts divide certain property expenses between the buyer and seller as of the closing date. They may increase or reduce the money needed on closing.
Depends on the purchase
These costs depend on the property, financing and due diligence required. They may include inspections, an appraisal, a status certificate or additional rural and new-construction costs.
Why purchase price matters
Closing costs generally rise as the purchase price increases.
A higher purchase price usually means:
A larger deposit
A larger down payment
More Ontario land transfer tax
A higher mortgage-loan insurance premium when applicable
More provincial tax on that premium
Potentially higher title-insurance and legal costs
A percentage can be useful for early planning, but a meaningful estimate should be calculated using the actual purchase price, down payment and financing.
Costs before or during the purchase
Part of the purchase price
How much is the deposit, and when is it due?
The deposit is paid after an offer is accepted, according to the deadline in the agreement. It is commonly required within 24 hours of acceptance, although the exact deadline in your agreement is the one that applies.
There is no standard deposit amount. It depends on the purchase price, the property and the market circumstances. Generally, a higher-priced property will require a larger deposit.
The deposit is not an additional cost on top of the purchase price. It is credited toward the funds you must provide on closing. What matters is timing, so the money should be accessible before you submit an offer.
Depends on the purchase
Inspections
The inspections that make sense will depend on the property and the conditions included in the agreement.
Approximate Ottawa-area costs:
Home inspection: $400 to $650 plus HST
WETT inspection: $250 to $400 plus HST
Well inspection: $400 to $600 plus HST
Septic inspection: $500 to $800 plus HST
Basic private-well bacterial water testing: Free through Public Health Ontario laboratories
The size, age and location of the property can affect the cost. Rural inspectors may charge for travel, septic pumping may be additional and expanded water testing can carry separate laboratory or collection fees.
Other property-specific or specialist inspections should be quoted directly by the professional.
Depends on the purchase
Appraisal
A lender may require an appraisal to confirm that the property provides acceptable security for the mortgage.
The lender may cover the appraisal, charge the cost to you or require you to arrange and pay for it directly.
Depends on the purchase
Condominium status certificate
A condominium status certificate and its supporting documents provide important information about the unit and condominium corporation. A lawyer should review the complete package as part of a properly drafted condition.
A standard status certificate currently costs up to $100, including applicable taxes, and the condominium corporation generally has up to 10 days to provide it. When the condition period is shorter, a rushed certificate may be needed and commonly costs up to approximately $200.
The lawyer’s review may be included in the purchase legal fee or charged separately. Confirm this before retaining the lawyer.
Your down payment and mortgage
Part of the purchase price
Down payment
Your down payment is the portion of the purchase price you are paying yourself rather than borrowing through the mortgage.
The deposit already paid is credited toward the down payment and other funds required on closing.
A simplified calculation is:
Purchase price
minus mortgage funds
minus deposit already paid
equals the remaining portion of the purchase price you must provide
Your mortgage professional will confirm the minimum down payment, acceptable sources of funds and the documents needed to verify where the money came from.
Costs of completing the purchase
When is mortgage loan insurance required?
Mortgage loan insurance is generally required when the down payment is less than 20% and the purchase meets the applicable insurer and lender requirements.
The premium is calculated as a percentage of the mortgage and is based partly on the size of the down payment. It can generally be added to the mortgage rather than paid entirely in cash.
Mortgage loan insurance protects the lender, not the buyer.
Because the premium depends on the purchase price, down payment, mortgage amount and amortization, use the current CMHC calculator rather than relying on a static table.
CMHC mortgage loan insurance premium calculatorCosts of completing the purchase
Ontario tax on the insurance premium
In Ontario, provincial sales tax applies to the mortgage loan insurance premium. The premium itself can generally be added to the mortgage. The tax cannot, which means it needs to be part of the funds you provide on closing.
Ask your mortgage professional to confirm whether mortgage loan insurance applies to your purchase, the amount of the premium and the tax you will need to pay on closing. If you would like an introduction to someone, I am happy to make one.
Costs of completing the purchase
How much is Ontario land transfer tax?
Ontario land transfer tax is calculated using graduated rates. It applies to each portion of the purchase price as follows:
0.5% on the first $55,000
1.0% on the portion above $55,000 up to $250,000
1.5% on the portion above $250,000 up to $400,000
2.0% on the portion above $400,000 up to $2,000,000
2.5% on the portion above $2,000,000 where the property contains one or two single-family residences
Examples
Purchase price: $500,000
Ontario land transfer tax: $6,475
Purchase price: $750,000
Ontario land transfer tax: $11,475
Purchase price: $1,000,000
Ontario land transfer tax: $16,475
These examples do not account for a first-time buyer refund or any special tax treatment that may apply.
Do first-time buyers pay land transfer tax in Ontario?
Eligible first-time buyers may receive a refund of some or all of the Ontario land transfer tax, up to the current maximum of $4,000.
For a qualifying first-time buyer, the examples above would become:
Purchase price: $500,000
Land transfer tax after maximum refund: $2,475
Purchase price: $750,000
Land transfer tax after maximum refund: $7,475
Purchase price: $1,000,000
Land transfer tax after maximum refund: $12,475
Eligibility is specific. Previous ownership anywhere in the world, a spouse’s ownership history, citizenship or permanent-residency status and how ownership is divided can affect the refund.
Your lawyer will confirm whether you qualify and will generally apply the eligible refund when the transfer is registered.
Costs of completing the purchase
How much are legal fees when buying a home in Ottawa?
For a straightforward Ottawa-area purchase, plan for approximately $2,000 to $3,500 for the lawyer’s fee, common disbursements and title insurance. This is separate from Ontario land transfer tax.
The total may be higher if the purchase involves bridge financing, a private lender, additional mortgages, unusual title issues, new construction or other work outside a typical transaction.
When requesting a quote, ask what it includes. Ideally, the estimate should identify:
The legal fee
HST
Expected disbursements
Registration and banking charges
Title insurance
Any services that would be charged separately
Closing adjustments
Adjustments
Some property expenses are divided between the buyer and seller as of the closing date.
If the seller has prepaid an expense for a period extending beyond closing, the buyer may reimburse the seller for the buyer’s portion. If an amount is outstanding, the adjustment may work in the other direction.
Adjustments may include:
Property taxes
Condominium common expenses
Fuel remaining in a tank
Prepaid rental contracts or service charges
Other property-specific items
The lawyer calculates these amounts in the statement of adjustments.
Costs of completing the purchase
Property insurance
Property insurance generally needs to take effect on closing day. The lender will usually require proof of coverage before advancing the mortgage funds.
The premium can depend on the property’s age, location, replacement cost and features such as:
Electrical wiring and panel
Plumbing
Heating system
Roof
Wood-burning appliances
Well or septic system
Previous insurance claims
Rental units or business use
Begin obtaining insurance as soon as the purchase becomes firm, or earlier when the agreement includes an insurance condition.
Depends on the purchase
Costs that depend on the property
New construction and substantially renovated properties
HST generally applies to newly constructed and substantially renovated housing. Depending on the agreement, the stated purchase price may include HST based on the buyer qualifying for and assigning a rebate to the builder.
New-construction agreements may also contain adjustments for items such as:
Development or education charges
Utility installation or connection costs
Tarion enrolment
Deposits and occupancy fees
Meter installation
Builder administration or legal charges
Other amounts listed in the agreement
Have a lawyer familiar with new-construction purchases review the agreement and identify the potential adjustments before the review period expires.
Rural-property costs
A rural purchase may involve additional investigation or ongoing costs related to:
Well inspection and water testing
Septic inspection or pumping
WETT inspection
Propane or oil adjustments
Private-road agreements
Surveys
Conservation or environmental review
Internet installation
Equipment rentals
Not every cost applies to every rural property. The property and agreement will determine what needs to be investigated.
Depends on the purchase
Moving and immediate ownership costs
These are not legal closing costs, but they still affect the amount you should have available.
They may include:
Movers or vehicle rental
Packing supplies
Storage
Elevator booking
Utility and internet setup
Cleaning
Lock changes or rekeying
Immediate repairs
Appliances, blinds or furniture
Condominium move fees or deposits
Mail forwarding
Initial maintenance equipment
How much money goes to the lawyer?
Your lawyer will provide the exact amount required before closing.
A simplified calculation may look like this:
Purchase price
minus mortgage funds
minus deposit already paid
plus Ontario land transfer tax
plus legal fees, title insurance and disbursements
plus or minus adjustments
plus applicable provincial tax on the mortgage-insurance premium
equals the funds required to close
This is only a planning formula. Use the final amount and delivery instructions provided directly by your lawyer.
Do not transfer money based solely on instructions received by email. Confirm all account details directly with your lawyer using a trusted telephone number before sending funds.
Selling
Start with what you are likely to take with you.
The sale price is not the same as the amount you will receive after closing. Your mortgage payout, selling costs, legal fees and applicable adjustments are taken into account before the remaining proceeds are released.
Looking at those costs early gives you a more useful estimate of what may be available for your next purchase, move or other plans.
Preparing the property
Preparation costs should be based on what the property needs, the market and what is likely to make a meaningful difference.
They may include:
Repairs and maintenance
Painting
Cleaning
Decluttering or storage
Landscaping or seasonal maintenance
Staging
Pre-listing inspection
Well, septic or WETT inspections
Contractor or specialist reports
Not every property needs every service. I’ll help you decide what is worth doing, what can stay as it is and where a little attention could make a meaningful difference.
Related resource
Home Prep and Staging ChecklistHow are real estate fees calculated when selling in Ontario?
The remuneration payable to the listing brokerage is set out in the listing agreement. It may include an amount offered to another brokerage that represents or assists the buyer.
HST is added to the agreed amount.
Because real estate fees are negotiable and depend on the listing agreement, this guide does not use a standard percentage. Before you sign, I’ll explain the amount, how it is calculated and what is included.
A simplified calculation is:
Sale price
multiplied by the agreed percentage
plus HST
equals the total real estate fees
Legal fees and disbursements
For a straightforward Ottawa-area sale, it is reasonable to budget approximately $1,300 to $2,000 for legal fees and common disbursements.
The total may be higher when the transaction involves:
More than one mortgage or secured line of credit
An estate
Matrimonial issues
Liens or court orders
Unusual title matters
Additional registrations or discharges
Another issue requiring additional legal work
Ask for a written estimate that separates the legal fee, HST, disbursements and any mortgage-discharge costs.
What happens to my mortgage when I sell?
If there is a mortgage or secured line of credit registered against the property, it normally needs to be paid and discharged as part of the sale.
The payout may include:
Remaining principal
Interest to the payout date
Mortgage prepayment penalty
Discharge or administration fee
Other amounts secured against the property
A prepayment penalty may apply when a mortgage is paid before the end of its term. It can sometimes amount to thousands of dollars.
Ask your lender for a written payout estimate early. If you are purchasing another property, also ask whether the mortgage can be ported and what conditions apply.
Adjustments
The buyer may reimburse you for certain expenses you prepaid beyond the closing date. Other outstanding amounts may be deducted from your proceeds.
Adjustments may include:
Property taxes
Condominium common expenses
Fuel remaining in a tank
Prepaid rental or service contracts
Other property-specific items
Your lawyer calculates these amounts in the statement of adjustments.
Condominium costs
A condominium sale may involve costs such as:
Standard or rushed status certificate
Management or administration charges
Move or elevator fees
Outstanding common expenses
Special assessments
Fees for required condominium documents
Responsibility for ordering and paying for the status certificate can depend on the agreement.
Moving, storage and transition costs
Depending on your plans, you may need to account for:
Movers
Packing supplies
Storage
Temporary accommodation
Cleaning
Utility cancellation or transfer
Mail forwarding
Disposal or donation services
Bridge financing
Interest and carrying costs if closing dates do not align
Tax considerations
The sale of a property that has been your principal residence may qualify for the principal-residence exemption, but the sale generally still needs to be reported on your income-tax return.
Tax may apply when the property:
Was not your principal residence for every year of ownership
Was used to earn rental or business income
Contains a significant income-producing portion
Was owned by a corporation or trust
Was substantially renovated or sold in circumstances that may be considered business activity
Is being sold by a non-resident
Is subject to another special tax rule
HST generally does not apply to the ordinary sale of a used owner-occupied residence, but it can apply in certain situations.
An accountant or tax lawyer should advise you about the tax treatment of your particular sale. If you do not have someone, I am happy to introduce you.
Estimating net sale proceeds
A simplified estimate may look like this:
Sale price
minus mortgage and secured-debt payout
minus any mortgage penalty or discharge costs
minus real estate fees and HST
minus legal fees and disbursements
plus or minus adjustments
minus other property-specific obligations
equals estimated net sale proceeds
The final amount comes from your lawyer after all payouts and adjustments have been confirmed.
Buying and selling at the same time
When one move depends on the other.
When you are selling one property and buying another, the timing matters just as much as the totals. The deposit and funds for the purchase may be needed before the proceeds from your sale are available.
Depending on the closing dates, you may need to consider:
Whether the sale proceeds will be available in time
Deposit funds for the purchase
Bridge financing
Mortgage portability
Temporary accommodation
Storage
Overlapping mortgage, tax, insurance or utility costs
The risks of buying before selling
The risks of selling before buying
Your mortgage professional and lawyer should review the timing before you commit to the dates in either agreement. I’ll help coordinate the real estate side and make sure everyone has the dates they need.
Your numbers
Start putting the pieces together.
Use this tool for an early estimate of the money you may need to buy, the proceeds you may receive from a sale or how the two could work together. Your lawyer, lender and other professionals will confirm the final amounts.
Official and local resources
Related Kindred Home resources
Buying for the first time?
A checkpoint by checkpoint list for a first purchase, with a tracker for the dates that matter and a printable workbook.
First-Time Buyer ChecklistWant the whole process?
How buying actually works in Ontario, from preparing and searching through offers, inspections, financing approval and closing day.
Buyer GuideThe whole picture
Let’s make sure the numbers feel right, too.
Whether you are buying, selling or doing both, we can talk through the costs that may apply and make a list of the numbers that still need to be confirmed.
Important information
This guide provides general information for residential real estate transactions in Ottawa and the surrounding areas. It is not financial, mortgage, legal, accounting, tax, insurance or inspection advice.
The costs shown are approximate and may vary based on the property, location, provider and complexity of the transaction. Tax rates, eligibility requirements and professional fees can change. The figures shown were last reviewed on August 19, 2026.
Confirm the amounts that apply to you with the qualified professional responsible for that part of your transaction.