Closing Costs Buyer’s Fees

Buying a home in Canada isn’t just about the down payment — closing costs can add thousands to your total bill. If you’re not prepared, these fees can catch you off guard at the worst time. Here’s what every buyer needs to know.

What Are Closing Costs and Why Do They Matter?

The term “closing” refers to the moment when ownership of a property officially transfers from the seller to the buyer. And while it’s exciting, it also comes with a hefty list of one-time costs that you, as the buyer, are expected to pay upfront — outside of your mortgage.
These are called closing costs, and they usually add up to about 3% to 5% of your home’s purchase price. They cover everything from legal fees and appraisals to prepaid property taxes and home warranty enrolment. The more you know about them, the better you can budget smartly and avoid last-minute surprises.

New Home Warranty Enrolment Fee

If you’re buying a brand-new home, your builder will likely enrol the property in a mandatory new home warranty program. This is protection for you — the buyer — in case structural issues or building defects appear down the line.
While the builder handles the enrolment, the fee is typically passed on to you at closing. Depending on the province and the cost of your home, this can range from $385 to $1,500. In some cases, the builder may include it in the home’s price — but it’s best to confirm ahead of time.

Appraisal Fee

Your lender wants to make sure the home you’re buying is actually worth the price you’re paying. That’s why many mortgage approvals include a property appraisal.
The appraiser will determine the fair market value of the home, and this gives the lender confidence in the loan they’re providing you. Expect to pay anywhere between $300 to $500 depending on your location and the complexity of the home.

Land Survey Fee

If your lender requires it — or if one doesn’t already exist — you might have to get a land survey done. This outlines your property’s official boundaries, so there’s no confusion with neighbours or future disputes.
Surveys usually cost around $750 to $1,000, depending on the size and complexity of the lot. Some lenders will accept older surveys, so it’s worth checking if one already exists.

Utility Hook-Up Fees

When you move in, you’ll want all your utilities — water, gas, hydro, internet — working on day one. Setting them up, however, can involve hook-up or connection fees, especially if you’re opening new accounts or moving services.
While these costs are relatively small, they add up. Be sure to ask utility providers in advance if a service charge applies so you can plan accordingly.

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Prepaid Property Taxes

If the seller has already paid property taxes beyond your closing date, you’ll need to reimburse them for the portion covering your ownership period. This is sorted out in the Statement of Adjustments — a document prepared by your lawyer during the closing process.
For example, if the seller paid annual property taxes in January and your closing is in July, you’ll owe them for the second half of the year.

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Prepaid Condo Fees

Buying a condo? If the seller prepaid monthly condo fees (also known as maintenance fees), you’ll need to pay your share back from your move-in date to the end of the period the seller covered.
Again, this will be itemized in the Statement of Adjustments and included in your closing costs.

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Prepaid Utilities

Similar to taxes and condo fees, sellers sometimes prepay utility bills like water, gas, or hydro. If they have, you’ll need to reimburse them for the period you’ll be living in the home.
All of these amounts — including taxes, utilities, and condo fees — are finalized before closing and your lawyer will ensure they’re accurate.

Final Thoughts

When it comes to buying a home, the down payment and mortgage get most of the attention. But closing costs are the hidden expenses that can throw off your budget if you’re not ready for them.
The good news? They’re a one-time expense — once paid, you’re in the clear until your next move. Make sure you plan for 3% to 5% of your home’s purchase price and review every item with your lawyer or mortgage expert.
At Mortgage.Expert, our team helps you understand the full picture — closing costs and all — so you’re never caught off guard.
Why Choose Mortgage.Expert
We go beyond rates. Our commission-free mortgage advisors help you budget smartly, plan ahead, and navigate every closing cost without stress. Because buying your dream home should feel exciting — not overwhelming.

Know Exactly What You’ll Owe at Closing

From land transfer taxes to legal fees and inspections — closing costs can add up fast. Use our breakdown to plan ahead and avoid last-minute surprises as a buyer in Canada.
View the Full Closing Cost Breakdown