Mortgage Closing Costs for Buyers

Your closing costs are on top of your down payment.

Whether you’re buying, selling or refinancing a home, you'll need to pay for a number of closing costs. They can range anywhere from 1.5 to 4% of the price of the home or property — on top of your down payment. First-time home buyers can be especially surprised when they see their closing costs adding up, but may also be eligible for rebates (depending on the province).

Our highly-trained True North Mortgage brokers help you through the entire process, and detail all closing costs or rebates involved. But for a quick idea, check out the example below as an illustration of what to expect.

An example of closing costs in Calgary, Alberta

Let's explore an example calculation using a fictional property in Calgary, Alberta.

Using an average home price in Calgary of $442,529, let’s say we’re making a 5% down payment ($22,127) to see what the closing costs could add up to. For this example, we're not a first-time homebuyer.

We’ll use a couple of fee estimates (which would depend on the professional chosen and their fees): $500 for a home inspection and $1,500 for legal fees. And, Alberta charges a relatively smaller land title transfer fee vs the typical Land Transfer Taxes in other provinces.

(Please note that there may be more closing costs involved for your mortgage, but we'll keep it simple for this example).

So with a down payment of $22,127, these closing costs for this home would be $24,351 – that’s $2,224 over and above your down payment. You would first need to pay for a home inspection ($525 incl. GST), then your down payment ($22,127), your land title transfer fee* ($124), and finally your legal fees and disbursements ($1,575 incl. GST).

*In many provinces, Land Transfer Tax (LTT) can the most expensive closing cost, but in Alberta, a smaller title transfer fee is charged.

• Use our LTT calculator for approximate costs in your area
• Or, check out our Land Transfer Tax blog for info on how these taxes may be treated in your province
• Ask one of our expert brokers for accurate information for your situation

Know your closing costs upfront, for a stress-free mortgage process.

No matter where you are in Canada, there may be a number of fees and costs to keep in mind for your final home-buying budget. We'll outline the closing costs specific to your area, and inform you about any government rebates or programs, such as the First Time Home Buyers Incentive, that may be available to help soften the financial blow. Plus, our brokers have long-standing, trusted relationships with many mortgage service providers if you need a referral.

Regardless of the extra closing costs, buying a home or property is an exciting prospect. Of course, saving thousands is also exciting — with your best rate through our volume discount.

Have more mortgage questions? Check out our Mortgage FAQs.

Anywhere you are in Canada, get the mortgage answers you need. Connect with us online, over the phone, or at one of our store locations to get started.