Not sure how much cash you need on closing day in Ottawa? You are not alone. Between land transfer tax, legal fees, and lender charges, it can be hard to know what is due when. The good news is that most costs are predictable if you know where to look. In this guide, you will learn exactly what closing costs cover, what you pay in Ottawa, how much to budget, and where first-time buyer rebates can help. Let’s dive in.
What closing costs cover
Closing costs are the additional expenses you pay at or before the legal transfer of the home. They are separate from your down payment. Typical items include taxes and registration fees, legal fees, lender and appraisal charges, title insurance, inspections, and adjustments for property taxes or condo fees.
Some costs are due in cash on closing. Others can be added to your mortgage. The Financial Consumer Agency of Canada offers a helpful overview of common items and timing in its guidance on closing costs. You can read that federal summary for context in the FCAC’s resource on closing costs.
- Cash at closing usually includes the Ontario land transfer tax, legal fees, title registration, and adjustments.
- Financeable items often include the mortgage default insurance premium if your down payment is under 20 percent.
For Ottawa buyers, provincial rules apply and there is no municipal land transfer tax.
Ottawa taxes and fees
Ottawa buyers pay the Ontario Land Transfer Tax. Ottawa does not charge a separate city land transfer tax.
- Land Transfer Tax rates in Ontario are calculated on the purchase price:
- 0.5% on the first $55,000
- 1.0% on $55,000 to $250,000
- 1.5% on $250,000 to $400,000
- 2.0% on $400,000 to $2,000,000
- 2.5% on amounts over $2,000,000
You can find full details and calculators on the Government of Ontario’s Land Transfer Tax page. First-time buyers may qualify for a refund up to $4,000, outlined in the province’s refund program for first-time homebuyers.
- Title registration and land registry disbursements are usually in the low hundreds for a standard transaction.
- Property tax amounts and timing follow City of Ottawa rules. On closing, buyers and sellers settle any prepaid or accrued taxes as adjustments.
Mortgage-related costs
If your down payment is less than 20 percent, mortgage default insurance is required. Insurers such as CMHC set premiums as a percentage of the loan based on your down payment.
- Typical premium ranges are a few percent of the mortgage amount. Your lender or mortgage professional can quote your exact premium using CMHC’s mortgage loan insurance tables.
- Most buyers add the premium to the mortgage. You can also pay it at closing if you prefer to reduce your loan balance.
- Lenders may charge admin or commitment fees. Amounts vary by lender and are often in the low hundreds.
- Appraisals are commonly required by lenders and typically cost about $200 to $500.
- If you close mid-month, expect prepaid interest from your closing date to your first payment date.
Professional and legal fees
Real estate closings in Ontario involve a lawyer who completes title searches, prepares documents, registers the transfer and mortgage, and handles trust funds.
- Legal fees for a straightforward purchase often range from about $700 to $1,500 plus disbursements.
- Title insurance is a one-time premium that protects you and your lender from covered title defects. It is commonly a few hundred dollars and is often more cost-effective than ordering a new survey. The Insurance Bureau of Canada explains how title insurance works in Ontario.
- Home inspection for a resale home typically ranges from about $300 to $700 depending on size and scope.
Adjustments, condos, and moving
On closing statements, you will see adjustments. These settle who owes what for items the seller has prepaid or that accrue daily.
- Common adjustments include property taxes, condo fees, and in some cases utilities. Your lawyer calculates these to the exact day.
- Condo buyers usually request a status certificate to review financials, rules, and legal matters. The condo corporation charges a fee, commonly within $100 to $400.
- Budget separately for moving costs, immediate repairs, and utility hookups. These are outside legal closing costs but happen at the same time.
New-build considerations
Buying a newly built home or condo in Ottawa comes with a few unique cost items.
- HST generally applies to new homes in Ontario. Many builder prices are quoted as HST-included for owner-occupiers, and federal or provincial rebates may factor into the contract price. The Canada Revenue Agency explains eligibility and rebate details in its GST/HST new housing rebate guide.
- New condo purchases may involve an interim occupancy period. During this phase you pay occupancy fees before final closing when the building is registered.
- Tarion administers Ontario’s new home warranty program. Confirm your builder’s registration and what warranty coverage applies to your purchase using Tarion’s buyer resources.
You still pay Ontario Land Transfer Tax on new homes, just like resales.
How much to budget
Every file is different, but you can estimate the cash needed on closing by adding your down payment, land transfer tax, legal fees and disbursements, title insurance, inspection and appraisal, plus a cushion for adjustments. Here are simple Ottawa-focused examples based on common ranges.
Example A: $500,000 resale home, 10 percent down
- Down payment: $50,000
- Land Transfer Tax: about $6,475 using the provincial brackets
- Legal and disbursements: about $1,200
- Title insurance, inspection, appraisal: about $1,150
- Estimated cash at closing if mortgage insurance is added to the mortgage: around $60,000 to $61,000
Example B: $750,000 resale single-family, 20 percent down
- Down payment: $150,000
- Land Transfer Tax: about $11,475 using the provincial brackets
- Legal, title insurance, inspection: about $1,800
- Estimated cash at closing: around $164,000
Example C: $600,000 purchase, 10 percent down
- Down payment: $60,000
- Land Transfer Tax: about $8,475
- Legal, title insurance, inspection, appraisal: about $2,350 combined
- Estimated cash at closing if mortgage insurance is added to the mortgage: about $70,800
If you are an eligible first-time buyer, the Ontario LTT refund can reduce your upfront tax by up to $4,000. That is a meaningful savings at closing. Remember that federal tax credits like the Home Buyers’ Amount apply when you file your taxes. You can also consider using the RRSP Home Buyers’ Plan if you qualify. See the CRA page that explains both the Home Buyers’ Amount and the Home Buyers’ Plan.
These figures are examples. Your actual numbers depend on your closing date, the property type, any condo status fees, new-build adjustments, and your lender’s requirements. Ask your lawyer and lender for an itemized estimate once your offer is firm.
First-time buyer help
If you are buying your first home in Ottawa, two programs often come up:
- Ontario LTT refund for first-time buyers. Up to $4,000 off your provincial land transfer tax if you meet eligibility rules and occupy the home as your principal residence. Your lawyer applies the refund on closing. Review criteria on the Government of Ontario’s refund page.
- Federal programs at tax time. The Home Buyers’ Amount provides a non-refundable tax credit for eligible first-time buyers, and the Home Buyers’ Plan lets you withdraw from RRSPs for a down payment if you repay according to CRA timelines. See CRA guidance for both programs.
For new builds, review how HST and any new housing rebate are treated in your agreement. CRA’s new housing rebate page explains the frameworks builders and buyers follow.
Smart planning tips
- Ask for a written estimate early. Your lawyer can outline legal fees, disbursements, registration costs, and an estimate of land transfer tax so you can plan your cash needs.
- Confirm how your mortgage premium is handled. If you need mortgage default insurance, decide with your lender whether to add the premium to your mortgage or pay it up front.
- Order the condo status certificate promptly. Budget for the fee and review the reserve fund, bylaws, and any special assessments with your lawyer.
- Consider title insurance. It is widely used in Ontario and can be a cost-effective way to manage title risks without ordering a new survey. See the Insurance Bureau of Canada’s overview of title insurance.
- Keep a contingency. Setting aside an extra $1,000 to $2,500 for closing-day adjustments is prudent.
- Check City of Ottawa tax timing. Understanding billing cycles can help you anticipate adjustments. The City’s property tax page is a useful reference.
Ready to plan your closing?
A clear closing budget helps you write stronger offers and move with confidence. If you would like a personalized walkthrough of your numbers and a strategy that fits your price point and timeline, reach out to The Zak Green Team. We bring a consultative, data-led approach and deep Ottawa market expertise to every purchase, from urban homes to lifestyle properties.
Looking for a second opinion on a new-build agreement, a condo status certificate, or your closing-day plan? Start a conversation with The Zak Green Team today at The Zak Green Team.
FAQs
What are closing costs in Ottawa and how are they different from a down payment?
- Closing costs are extra fees due at or before closing, such as land transfer tax, legal fees, title insurance, and lender charges, while the down payment is the portion of the purchase price you pay up front.
How is Ontario land transfer tax calculated for Ottawa homes?
- Ontario uses tiered rates that apply to portions of your purchase price, and Ottawa does not add a municipal tax; see the province’s Land Transfer Tax page to estimate your exact amount.
Do I pay HST on a resale home in Ottawa?
- Resale homes are typically exempt from HST while most new homes include HST treatment within the price and may qualify for the federal new housing rebate if criteria are met.
Can I add CMHC mortgage insurance to my mortgage instead of paying it at closing?
- Yes, most buyers add the premium to their mortgage when the down payment is under 20 percent, which reduces cash needed at closing but increases the loan balance.
Do I need both title insurance and a new survey?
- Not usually; in Ontario many buyers use title insurance as a cost-effective alternative to ordering a new survey, but your lawyer will advise based on the property.
How much should I set aside for adjustments like taxes or condo fees?
- Amounts vary by closing date and billing cycles, so keep a $1,000 to $2,500 cushion for adjustments in addition to your estimated legal fees and land transfer tax.
What help is available for first-time buyers in Ottawa?
- You may qualify for the Ontario LTT refund up to $4,000 on closing and federal programs like the Home Buyers’ Amount tax credit and the RRSP Home Buyers’ Plan.
