How do I calculate final closing costs?
Want to know your final closing costs before you sign? Here’s the fast formula that removes surprise fees.
The quick answer
Final closing costs = purchase adjustments + government fees + lender fees + professional fees + prorated expenses + one-time extras. Calculate each line, add them up, and you’ll know exactly what to bring to closing.
Step-by-step formula you can use now
- Start with the purchase price.
- Add government fees (land transfer tax, GST/HST where applicable).
- Add lender fees (appraisal, mortgage application, mortgage insurance if required).
- Add professional fees (lawyer/notary, title insurance).
- Add prorated items (property taxes, utilities, condo fees the seller prepaid).
- Add one-time extras (home inspection, mover, utility hook-ups).
Example (simple):
- Purchase price: $800,000
- Land transfer tax estimate (1.5%): $12,000
- Lawyer & closing costs: $1,500
- Title insurance: $300
- Appraisal: $500
- Adjustments & prepaid taxes: $800
- Inspection & moving deposit: $900
Final closing costs = $12,000 + $1,500 + $300 + $500 + $800 + $900 = $16,000
Use this as a baseline. Local taxes and lender requirements change totals.
Common line items to watch (and how to estimate them)
- Land transfer tax: varies by province/municipality. Check local rates or ask your realtor.
- Legal fees: typically $800–$2,500 depending on complexity.
- Title insurance: $200–$500.
- Appraisal: $300–$700.
- Home inspection: $300–$700.
- Mortgage default insurance: required for high LTV loans — often a percentage of the mortgage.
- HST/GST: applies to new builds or certain services.
How to build your closing costs calculator (3-minute method)
- Create a table with the line items above.
- Plug in either exact quotes or conservative estimates.
- Sum the totals and add a 5–10% buffer for surprises.
Tip: keep the buffer. Sellers and lenders adjust numbers at the last minute.
Why this matters — and what I do differently
I cut the guesswork. I run a localized closing-cost estimate for every client based on current municipal taxes, lender requirements, and real legal quotes. That eliminates surprises and gives you a real number to bring to the bank.
Actionable next steps
- Download or build a simple spreadsheet using the formula above.
- Ask your lender for a Good Faith Estimate and compare line by line.
- Contact a local lawyer early — quote turns into final legal fees.
For a precise, no-nonsense closing-cost calculation tailored to Toronto and surrounding markets, reach out. I’ll run the numbers and send a clear, itemized estimate so you know exactly what to bring to closing.
Contact: Tony Sousa — realtor
Email: tony@sousasells.ca | Phone: 416-477-2620 | https://www.sousasells.ca
