You’ve saved your down payment. You’ve been pre-approved. You’ve found the house. And then your lawyer sends you a statement and there’s a number on it you weren’t expecting.
Closing costs. They catch people off guard every single time — not because buyers aren’t smart, but because nobody talks about them until it’s almost too late.
So let’s talk about them now, before you need to.
What are closing costs, exactly?
Closing costs are the fees and expenses you pay to finalize a real estate transaction — everything that happens between “offer accepted” and “keys in hand.” They’re separate from your down payment, and they’re not optional.
In Canada, closing costs typically run between 1.5% and 4% of the purchase price. On a $600,000 home, that’s $9,000 to $24,000. It’s real money — and you need to have it ready in cash, not as part of your mortgage.
“Closing costs aren’t a surprise if you plan for them. Most buyers just forget to.”
What’s actually in there?
Here’s a breakdown of the main costs you can expect as a buyer in Ontario:
| Cost | Amount | Details |
|---|---|---|
| Land Transfer Tax | Varies | In Ontario, you pay provincial land transfer tax. In Brantford, there’s no municipal tax — a big advantage over Toronto buyers. |
| Legal Fees | $1,500–$2,500 | Your real estate lawyer handles title transfer, mortgage registration, and closing documents. Don’t skip this. |
| Home Inspection | $300–$750 | Paid before closing, but it’s part of your overall transaction cost. Worth every cent. |
| Title Insurance | $200–$400 | Protects you from unknown issues with the property’s title. Most lenders require it — and honestly, you want it. |
| Mortgage Default Insurance | If <20% down | CMHC insurance is added to your mortgage if your down payment is under 20%. It’s not paid upfront, but it affects your total cost. |
| Adjustments | Varies | If the seller has prepaid property taxes or utilities, you reimburse them at closing. Usually a few hundred dollars. |
A closer look at land transfer tax
Land transfer tax is usually the biggest single closing cost — and the one buyers are most surprised by. Here’s what it actually looks like on a $600,000 purchase in Brantford:
| Bracket | Tax |
|---|---|
| First $55,000 × 0.5% | $275 |
| $55,001–$250,000 × 1.0% | $1,950 |
| $250,001–$400,000 × 1.5% | $2,250 |
| $400,001–$600,000 × 2.0% | $4,000 |
| Total LTT | $8,475 |
* Brantford has no municipal land transfer tax — Toronto buyers pay this twice.
First-time buyers may qualify for the Ontario First-Time Home Buyer Land Transfer Tax Rebate — up to $4,000 back. On the example above, that brings your net LTT down to $4,475. Ask your lawyer before closing.
Who pays what?
This is the question everyone has — and the answer is: mostly the buyer. But sellers aren’t off the hook entirely.
Buyer pays
- Land transfer tax
- Legal fees
- Home inspection
- Title insurance
- Moving costs
- Property tax adjustments
Seller pays
- Real estate commissions
- Mortgage discharge fees
- Their own legal fees
- Any agreed repairs or credits
First-time buyer? There’s more help.
Beyond the land transfer tax rebate, there’s also the federal First Home Savings Account (FHSA) and the Home Buyers’ Plan (HBP) through your RRSP — both of which can help you get more into your down payment, which affects how much you’re borrowing and what your total costs look like.
The bottom line
Closing day should feel like a finish line — not a pop quiz. Know what’s coming and you’ll cross it with confidence.
💡 The rule of thumb: Save your down payment — then set aside an extra 2–3% of the purchase price on top of that for closing costs. On a $600,000 home, that’s $12,000–$18,000. That buffer means no surprises, no scrambling, and no stress on the day you’re supposed to be celebrating.
Want to know what your closing costs would look like?
Every situation is different. Let’s run the numbers together — no pressure, just clarity. Let’s connect →
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