Closing Costs to Consider When Purchasing a Home


When purchasing a home there are additional costs known as closing costs, which you need to consider.

Title Insurance

Title insurance protects homeowners against any issue that might arise on their home’s title, including defects and fraud. This will cost you around $150 and is a one-time fee. Your lawyer or notary assists you with obtaining title insurance.

Fire Insurance

Your mortgage lender will require that you have fire insurance in place on your home when you take possession. The amount of coverage you are required to have is generally no less than the amount of your mortgage or the cost to replace the home. The cost of the policy will depend on the size of your property.  Plus, any extras you include and the location of the home, as well as the insurance company.

You are responsible for paying the legal fees associated with the purchase of your home. Your lawyer (or notary) fees will likely be in the range of $700 to $1000. Also, you will be charged fees for registering your title with the municipality. In total, you will have to pay anywhere from $1,000 to $1,300 in legal fees, after taxes.

Land Transfer Tax

Land Transfer Tax is a fee that the province charges. However, first time home buyers are eligible for a rebate of the land transfer tax of up to $4000.


Adjusted costs cover repaying the seller for their prepayment of any condo fees or property taxes on your behalf. If you take possession of your home mid-month, the seller will have already paid these costs for the entire month. You will need to reimburse the seller for these costs.

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About Andrew Thake

Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.

Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.

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