How do I calculate total closing costs?
Want to know the real price tag at closing? Calculate your total closing costs in under 3 minutes.
Why total closing costs matter for Closing & Moving
Closing costs are more than a line item. They decide whether your move is smooth or a surprise bill. For buyers and sellers, closing costs + moving costs must be added to your budget before you sign.
The simple formula to calculate total closing costs
Total Closing Costs = One-time closing fees + Lender & mortgage fees + Adjustments & taxes + Inspection, insurance & registration fees + Moving costs
Breakdown (common line items):
- Land transfer tax (provincial + municipal where applicable)
- Legal or notary fees
- Title insurance
- Appraisal and home inspection
- Mortgage application, appraisal, or CMHC insurance (if applicable)
- Property tax adjustments, utility adjustments
- Realtor commissions (if you’re the seller)
- Moving company, storage, and utilities hookup costs
How to calculate — step-by-step
- List fixed fees: legal ($1,000–$2,500), title insurance ($200–$500), inspection ($400–$700).
- Calculate land transfer tax: use your province/city calculator. If a city matches provincial LTT, expect the total to be roughly double the provincial tiers for big markets.
- Add lender fees: appraisal ($300–$500), mortgage insurance if down payment <20% (this is often capitalized but affects your cost of ownership).
- Add pro-rated adjustments: property tax and utilities adjustments are usually small but can be several hundred dollars.
- Add moving costs: local move $300–$1,200; long-distance $1,500+ depending on size.
- Sum everything and add a 5–10% contingency for unforeseen fees.
Real example (Toronto-area buyer) — illustration
Purchase price: $800,000
- Provincial LTT (approx): $12,225
- Municipal LTT (Toronto, approx same): $12,225
- Legal fees & disbursements: $1,500
- Title insurance: $300
- Home inspection: $500
- Appraisal: $400
- Property tax adjustment and utilities: $800
- Moving (local): $700
Estimated Total Closing Costs = $28,650 (plus contingency)
This example shows how taxes can dominate the final number. Always run your exact land transfer tax with an official calculator and confirm legal fees with your lawyer.
Quick checklist before you sign
- Get a written estimate from your lawyer/notary
- Request itemized lender fees and appraisal charges
- Confirm whether municipal LTT applies to your address
- Budget moving and utility hookup separately
- Add a 5–10% buffer for unexpected charges
Bottom line
Calculating total closing costs is arithmetic: identify line items, get local tax numbers (land transfer), add legal and inspection fees, and include moving. Don’t guess — verify with your lawyer and your realtor. If you want a precise estimate for your property and a step-by-step Closing & Moving checklist tailored to your situation, contact a local expert.
For a fast, accurate estimate and a customized Closing & Moving plan, email tony@sousasells.ca or call 416-477-2620. Visit https://www.sousasells.ca for more resources.
