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Costs Associated With Closing a Home

We know that purchasing a home can come with many costs. Here are some that you can expect and prepare for when closing your home!

Appraisal Fee

This is the cost for a professional to come to your property and assess its value. An appraisal may be required to determine whether the selling price is reasonable for that market.


You must pay this (or HST) on a newly renovated or substantially renovated home. Resale homes do not require a GST payment. Some of this can be recovered with the GST/HST rebate for new or substantially renovated homes.

Home Inspection Fee

This is the cost of a professional inspection of your home. Hiring an inspector is optional but recommended for resale homes, and usually costs around $400-$600.

Property Insurance

Since your lender has a large stake in your home, they will often require you to purchase insurance against fire and weather-related damage. Purchasing "contents" insurance is also recommended to protect your valuables.

Land Transfer Tax

This is charged in most provinces, usually based on the purchase price.

Legal Costs

These are fees charged by your lawyer or notary for services such as conducting a title search, drafting a title deed, preparing the mortgage, and registration fees. This is estimated to cost over $500.

Mortgage Life Insurance

Special insurance coverage to cover the cost of your mortgage in the event of death or severe illness.

Mortgage Default Insurance

High-ratio mortgages (those with less than 20% down payment) generally require this. The cost is usually added to the mortgage and ranges from 1.00% to 3.25% depending on the amount of your down payment.

Moving Expenses

Costs vary depending on whether you do it yourself, rent a truck, or hire professional movers

Prepaid Taxes, Utility Bills, and Other Charges

Any previous owner may have prepaid some bills before the closing date, which you will have to reimburse them for. Taxes, utility bills, and other charges incurred after the closing date become your responsibility.


Most utility companies charge for hooking up your services and replacing any previous owners' name with your name on the bill.

And that's all! Hopefully this helps you prepare for what you should expect. If you have any questions at all regarding costs associated with closing a home, please send us a message! We would love to chat.

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