When you buy a home in Canada, closing costs are the fees and expenses you’ll need to pay — on top of your down payment — to finalize your purchase. These costs are standard across the industry and apply whether you're working with a bank, credit union, broker, or alternative lender.
What’s Included in Closing Costs?
While the exact breakdown can vary, here are the most common items that make up your closing costs:
Land Transfer Tax: A provincial tax based on the purchase price of your home. Some municipalities (like Toronto) have their own versions too.
Legal Fees & Disbursements: Lawyers are required to close real estate transactions in Canada. Fees typically range from $1,000 to $2,000.
Title Insurance: A one-time fee that protects against potential issues with your property title (often included in legal fees).
Appraisal Fee: Sometimes required by the lender to confirm the value of the property.
Home Inspection Fee: Optional but recommended to identify any issues before you finalize the purchase.
Prepaid Costs: These can include property taxes, utilities, or condo fees that the seller has paid in advance.
Mortgage Insurance (if applicable): If your down payment is below 20%, CMHC or other insurer premiums may be added to your mortgage or paid at closing.
Why Perch Mention's 1.5%
At Perch, we often note 1.5% of the home price as a general guideline for closing costs. It’s not a fixed amount — it’s just a helpful planning estimate so you’re not caught off guard. Your actual costs could be lower or higher depending on your situation, location, and lender.
How Can I Get a More Accurate Estimate?
To get a breakdown tailored to your home and province, try our free Closing Cost Calculator. It only takes a minute and gives you a personalized view of what to expect.
Still Have Questions?
If you want help reviewing your specific closing costs or how they affect your mortgage plan, you can always book a call with your Perch advisor. We're here to make sure you feel confident every step of the way.