What are typical closing costs for buyers?
Shocking: Buyers Often Pay 1.5%–4% in Closing Costs — Here’s the Exact Breakdown
Quick answer — how much will you pay at closing?
Most buyers pay between 1.5% and 4% of the purchase price in closing costs. For a $700,000 home that’s roughly $10,500–$28,000. Numbers vary by province, city, lender and whether you’re a first-time buyer.
Typical buyer closing costs — breakdown you can use
Below are the common fees every buyer should expect. I give ranges and a short note on who pays what.
- Land Transfer Tax (provincial + municipal where applicable): 0.5%–2%+ of purchase price. Major variable. First-time buyer rebates may reduce this.
- Legal fees & disbursements: $800–$2,000. This covers title search, registration and closing paperwork.
- Title insurance: $200–$400 (one-time). Protects against past title problems.
- Home inspection: $300–$700 (buyer pays). Strongly recommended before closing.
- Appraisal/valuation: $300–$600 (often paid by buyer or lender). Lender may require one.
- Mortgage default insurance (CMHC/Genworth) for high-ratio mortgages: 0.6%–4% of the mortgage. Can be added to the mortgage.
- Property tax and condo fee adjustments: prorated on closing day. Amount depends on closing date.
- Home insurance (first year): $600–$2,000 depending on coverage and home type.
- GST/HST on new construction or substantial renovations: variable — check tax rules for new builds.
- Miscellaneous (survey, estoppel certificates, utility connections, moving): $200–$1,000+.
Real examples to make it concrete
- Low-end buyer: $400,000 house — expect roughly $6,000–$10,000 in closing costs.
- Mid-range: $700,000 house — expect roughly $10,500–$28,000.
- High-end: $1M+ — closing costs grow with price and tax brackets.
These are estimates. Local charges (like municipal land transfer tax in Toronto) can add thousands.
How to reduce closing costs — practical moves that work
- Calculate land transfer tax before you make an offer. If it’s high, negotiate price or seller credit.
- Use first-time homebuyer rebates and incentives where eligible.
- Shop lawyers and title insurance providers. Rates vary.
- Bundle mortgage fees into rate negotiations with your lender.
- Time closing dates to reduce large prorated adjustments.
Why a local real estate expert matters
Closing costs are not just numbers. They’re local rules, deadlines and paperwork. A local expert saves you money by spotting rebates, avoiding costly timing mistakes, and negotiating credits.
Tony Sousa is the local agent who handles closing and moving every week. He will run the exact closing-cost math for your deal, show rebate options, and recommend trusted lawyers and inspectors so there are no surprises.
Contact Tony for a free closing-cost estimate tailored to your purchase: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Want an exact closing-cost breakdown for a specific property? Send the purchase price and closing city — you’ll get a clear, line-by-line estimate.
