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Closing Costs

Closing costs can be confusing — Don’t worry, i’m here to help!

Quick Answer...

Mortgage closing costs in Canada can vary depending on various factors, including the province or territory in which you are buying a home and the specific lender and mortgage product you choose. Closing costs typically include a variety of fees and expenses associated with finalizing the purchase of a home. Here are some common closing costs you may encounter in Canada:

  1. Down Payment: This is not a closing cost per se, but it's an upfront expense you'll need to consider. In Canada, the minimum down payment required is 5% of the purchase price for homes under $500,000. For homes over $500,000, the down payment increases to 10% for the portion of the purchase price above $500,000.

  2. Mortgage Broker's Fee: FREE when you use my services :) — I get paid by the lender, not you!

  3. Legal Fees and Disbursements: You'll need a lawyer to handle the legal aspects of the transaction. Legal fees can vary, but they often range from $1,000 to $4,500. Disbursements include expenses for things like title searches and registering the mortgage.

  4. Land Transfer Tax: This is a provincial or territorial tax based on the property's purchase price. The amount varies depending on where you are buying.

  5. Property Tax Adjustment: If the seller has already paid property taxes for the year, you'll need to reimburse them for the portion of the year you'll own the property.

  6. Home Inspection: While not mandatory, it's highly recommended to get a home inspection. The cost can vary, but it's typically a few hundred dollars.

  7. Appraisal Fee: Some lenders may require an appraisal of the property to determine its value. This can cost a few hundred dollars.

  8. Title Insurance: Title insurance is often required by lenders and is designed to protect against title fraud and other issues. The cost varies but is typically a few hundred dollars.

  9. Home Insurance: You'll need to arrange for home insurance.

  10. Property Survey: Not commonly required in Manitoba.

  11. CMHC Insurance (if applicable): If your down payment is less than 20% of the purchase price, you'll need to pay for mortgage insurance through the Canada Mortgage and Housing Corporation (CMHC). The premium is based on the loan-to-value ratio and can be added to the mortgage amount.

  12. Utility Hookup Fees: When you move into a new home, you may need to pay fees to set up utilities like water, gas, electricity, and internet.


These are some of the common closing costs in Canada, but the specific costs and their amounts can vary depending on your location and circumstances. It's essential to work with a real estate agent, mortgage broker, or legal professional to understand the closing costs associated with your specific transaction. This will help you budget accordingly and avoid any surprises at closing.

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