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Commercial Closing Costs

Commercial closing cost calculator

Audience: commercial investors and developers. Land transfer tax, GST/HST, commercial legal, appraisal, environmental Phase 1/2 and financing fees — all in one estimate.

Your commercial deal

Transaction
Province
Mortgage type
Environmental report
Override fee estimates
Estimated closing costs
$71,000
Cash you'll need at closing, on top of your down payment.
  • Land transfer tax$38,000
  • Legal fees$8,500
  • Appraisal$3,500
  • Environmental Phase 1$3,500
  • Financing fee (1.25% of mortgage)$17,500
GST (5%) self-assessed: $100,000 reported on the GST/HST return and typically offset by an input tax credit — no cash owed at closing.
Estimates only. Legal ($7,500–$10,000), appraisal ($2,500–$5,000) and environmental ($2,500–$10,000) ranges vary by lender, property and complexity. Insured A residential mortgages typically waive appraisal and cap total purchase price (incl. GST) at $1,499,999. Refinances don't pay land transfer tax. Get the exact numbers in your quote.

Where your commercial closing cash goes

Each bar is one line item from the list above. The biggest bar is usually the one to negotiate or shop hardest.

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We'll give you exact legals, appraisal, financing fees and lender quotes for your specific deal — not a calculator estimate.

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What this calculator does that most don't
  • Fee schedules change by lending lane — A-insured, A-conventional, B, and private each carry their real financing, legal, and appraisal costs
  • Commercial mode includes Phase 1 and Phase 2 environmental report costs — the line items that surprise first-time commercial buyers
  • New-build GST with the federal New Housing Rebate phase-out ($350K–$450K) and Ontario's provincial rebate — plus when GST can be financed into a private mortgage

Common questions

What are typical commercial closing costs in Canada?+

Budget 3–5% of purchase price on most commercial deals. That covers land transfer tax (BC PTT, Ontario LTT, Alberta land title fees), commercial legal ($7,500–$10,000), appraisal ($2,500–$5,000), environmental Phase 1 ($2,500–$5,000) and lender/broker financing fees from roughly 1.25% (bank) up to 2–4% (alternative and private lanes). Phase 2 environmental adds $5,000–$15,000 when required.

Is GST or HST payable on commercial real estate?+

Yes — commercial real estate is subject to 5% GST (BC, AB) or 13% HST (Ontario). Most GST-registered buyers self-assess and remit directly to CRA instead of paying the seller at closing, which removes it from cash-to-close. Toggle the self-assessment option in the calculator to reflect this.

When is an environmental Phase 2 required?+

A Phase 2 ESA is triggered when the Phase 1 identifies a Recognized Environmental Condition — typically prior industrial use, gas stations, dry cleaners, or properties adjacent to contaminated sites. Lenders won't fund without resolving it.

Every calculator here is built on published Canadian government rules and lender methodology, and was last checked for accuracy on August 1, 2026 — the arithmetic re-verified and every page re-read on screen. Rates and thresholds change — we confirm the current numbers for your file before you rely on them.