What Does It Really Cost to Buy a House?

It is essential to understand the costs beyond the purchase price when buying a home. Across Canada, closing costs in 2026 typically range from 1.5% to 4% of the purchase price. In high-tax areas like Toronto or Vancouver, or for properties over $2 million, these costs can even climb toward 5%.

Here is an updated guide to closing costs across Canadian communities for 2026.

Home Inspection

A professional inspection helps alleviate concerns about a property's condition. In 2026, costs vary by region and home type:

• National average: $400 – $700.
• Regional variations: Inspections in British Columbia and Alberta (where licensing is strictly regulated) often range from $500 – $800 for detached homes. In Atlantic Canada and Quebec, you may find rates closer to $400 – $600.
• Condos: usually lower, ranging from $300 – $500.

Mortgage Appraisal

Lenders require an appraisal to confirm the home's market value. While some lenders waive this for promotional offers, expect to pay between $350 – $700. In major hubs like Toronto or Vancouver, complex valuations for luxury or unique properties can exceed $1,000.

Land Transfer Tax (LTT) / Property Transfer Tax

This is often the largest closing cost. It is a provincial tax, but some cities (like Toronto) charge an additional municipal tax.

• Highest costs: Ontario and British Columbia use tiered systems that scale with the home price. An $800,000 home in Toronto could face over $25,000 in combined taxes (before rebates).
• Moderate costs: Manitoba and Quebec have tiered rates, while New Brunswick charges a flat 1%.
• Lowest costs: Alberta and Saskatchewan do not have a "land transfer tax" but instead charge smaller "transfer fees" (usually a few hundred dollars).
• Rebates: First-time buyers in Ontario, BC, and PEI often qualify for significant rebates to offset these costs.

Legal Fees and Disbursements

A real estate lawyer or notary is required to handle the title search and registration.

• Base fees: expect to pay $1,000 – $2,000 for professional services.
• Disbursements: out-of-pocket expenses (couriers, software fees, government registration) that typically add $500 – $900 to your final legal bill.

Title Insurance

Most lenders require title insurance to protect against title fraud or boundary disputes. In 2026, a one-time premium typically costs between $250 – $600, depending on the property value and province.

Home Insurance

Lenders require proof of insurance before advancing mortgage funds.

• National range: $1,200 – $2,500 annually.
• High-cost areas: rates are higher in Alberta (hail / flood risks) and British Columbia (earthquake coverage).
• Condos: much cheaper ($600 – $900) as the building's main structure is covered by the strata / condo corporation.

GST / HST on New Homes

• Resale homes: generally exempt from GST / HST.
• New construction: subject to GST (5%) or HST (13–15% depending on the province). Many provinces offer rebates for primary residences, but always clarify if the "sticker price" includes the tax and rebates.
• Note: in Ontario, even on resale homes, you must pay 8% PST on your CMHC (mortgage insurance) premium at closing.

Adjustments

You must reimburse the seller for any costs they pre-paid that cover the period after you take ownership. This commonly includes property taxes, hydro / water, and condo fees. Budget $1,000 – $3,000 for these "settling of accounts."

For a personalized closing-cost estimate tailored to your community, book a short intro call and we'll match you with a realtor who knows your local market in depth.