About Closing Cost Calculator
Free closing cost calculator for home buyers and sellers. Get a detailed breakdown of lender fees, title insurance, land transfer taxes, and prepaid expenses instantly.
How to use
- Enter the home purchase price and your planned down payment amount or percentage. These two numbers determine the mortgage amount, which affects several closing cost calculations including lender fees, title insurance, and CMHC insurance premiums for Canadian buyers with less than 20% down.
- Select your location (province or state) for accurate tax and fee calculations. In Canada, land transfer tax varies significantly by province — Ontario charges 0.5% to 2.5% on a sliding scale, while Alberta has no land transfer tax at all. In the US, transfer taxes and recording fees vary by county.
- Choose whether you are the buyer or seller, as closing costs differ dramatically. Buyers pay lender fees, title insurance, inspection, appraisal, and land transfer tax. Sellers pay real estate agent commissions (typically 4-6% of sale price in Canada, 5-6% in the US), legal fees, and any mortgage discharge penalties.
- Review the itemized breakdown of every closing cost with dollar amounts. This is your pre-closing checklist — no surprises on closing day. The total typically ranges from 1.5-4% of the purchase price for buyers and 6-8% for sellers.
- Look for potential savings. First-time buyer land transfer tax rebates (up to $4,000 in Ontario, $8,000 in Toronto), negotiable lender fees, comparison shopping for title insurance and legal services, and asking the seller for closing cost credits can reduce your out-of-pocket expenses by thousands.
- Run the calculation for both buying and selling if you are doing both simultaneously. This gives you your true net proceeds from the sale and true total cost of the new purchase, helping you budget accurately for the transition.
Frequently asked questions
How much are typical closing costs?
Buyers typically pay 1.5-4% of the purchase price in closing costs, while sellers pay 6-10% including agent commissions. On a $500,000 home purchase in Ontario, buyers should budget $15,000-$25,000 for closing costs including land transfer tax ($6,475), legal fees ($1,500-$2,500), title insurance ($300-$500), home inspection ($400-$600), appraisal ($300-$500), and CMHC insurance if applicable. Sellers of the same property pay roughly $25,000-$35,000 including agent commissions ($20,000-$25,000) and legal fees.
What fees are included in closing costs?
Buyer closing costs include: land transfer tax (provincial and sometimes municipal), legal/notary fees, title insurance, home inspection, appraisal fee, mortgage default insurance (CMHC/Sagen/Canada Guaranty if under 20% down), property tax adjustment, utility adjustments, and lender fees. Seller closing costs include: real estate agent commissions, legal fees, mortgage discharge/payout penalty, title search, and property tax adjustments. Some costs are negotiable (lender fees, agent commissions) while others are fixed (land transfer tax, title insurance).
Can I negotiate closing costs?
Yes, several closing costs are negotiable. Lender origination and processing fees can often be reduced or waived, especially if you have strong credit or are bringing other business to the institution. Real estate agent commissions are always negotiable — some listing agents will accept 1-1.5% instead of the traditional 2.5%. Title insurance and legal fees can be reduced by comparison shopping. You can also negotiate seller concessions where the seller credits you 1-3% of the purchase price toward your closing costs, which is especially common in buyer's markets.
What is land transfer tax in Canada?
A provincial tax charged when property ownership changes hands. Ontario uses a sliding scale: 0.5% on the first $55,000, 1% on $55,001-$250,000, 1.5% on $250,001-$400,000, and 2% above $400,000. Toronto adds a separate municipal land transfer tax at similar rates. First-time home buyers in Ontario get a rebate of up to $4,000 provincial and $4,475 Toronto municipal. British Columbia charges 1% on the first $200,000, 2% on $200,001-$2,000,000, and 3% above $2,000,000 with a first-time buyer exemption on homes under $500,000. Alberta and Saskatchewan have no land transfer tax.
Do I need title insurance?
Title insurance is not legally required in most Canadian provinces but is strongly recommended and usually required by lenders. It protects against title defects, liens, encroachments, survey issues, and fraud. The one-time premium costs $250-$500 and provides coverage for as long as you own the property. Without title insurance, you would need a full survey ($1,500-$3,000) and an exhaustive title search. Title insurance is significantly cheaper and covers more risks, which is why virtually all Canadian real estate lawyers recommend it.
What is CMHC insurance and how much does it cost?
CMHC mortgage default insurance is required in Canada when your down payment is less than 20%. The premium is a percentage of the mortgage amount: 4.00% for 5-9.99% down, 3.10% for 10-14.99% down, and 2.80% for 15-19.99% down. On a $400,000 home with 5% down ($20,000), the mortgage is $380,000 and the CMHC premium is $15,200. This premium is typically added to your mortgage balance and amortized over the life of the loan, adding roughly $80-$100 to your monthly payment. Unlike US PMI, Canadian mortgage insurance cannot be removed once applied. Use the
Home Affordability Calculator to see how your down payment size affects both your maximum purchase price and whether CMHC insurance applies.
When do I pay closing costs?
Most closing costs are paid on closing day (the day you take possession of the property). Your lawyer will provide a statement of adjustments showing all amounts due and collect a certified cheque or wire transfer for the total. Some costs are paid earlier: home inspection at time of inspection, appraisal when ordered, and deposits when signing the purchase agreement. Budget for these pre-closing cash outlays separately from your down payment. Your lender will provide a final closing disclosure or commitment letter detailing all fees at least a few days before closing.
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