Question 1

What are closing costs on a house in Canada?

Accepted Answer

Budget 1.5–4% of purchase price. Closing costs include land transfer tax (varies by province — biggest single line in BC and Ontario), legal fees (~$2,500 including title insurance and disbursements), appraisal (~$500, often waived on insured A mortgages), home inspection, and any lender or broker financing fees. Alternative (B) lenders typically charge a 2% lender fee; private lenders charge 3% or more.

Question 2

How much are closing costs in BC, Ontario and Alberta?

Accepted Answer

BC: roughly 1.5–3% — PTT is the big line ($16,000 on a $1M home, with first-time and new-build rebates). Ontario: 2–4% — LTT is doubled in Toronto via MLTT, so a $1M Toronto home is around $32,950 in tax alone. Alberta: under 1% — only modest land title and mortgage registration fees, no provincial transfer tax.

Question 3

Are closing costs different on a refinance vs purchase?

Accepted Answer

Yes — refinances skip land transfer tax entirely. You're left with legal (~$1,500–$2,500), appraisal (usually required, ~$500) and any lender/broker financing fee. That's why refis usually close for under $3,000 on an A lender.

Question 4

Do I pay closing costs on an Alternative (B) or private mortgage?

Accepted Answer

Yes, and they're materially higher than A lenders. Alternative (B) lenders charge ~2% of the loan amount as a lender fee; private lenders typically charge 3% or more, often plus a broker fee. The calculator splits these out so you can compare offers apples-to-apples.

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