Home Closing Cost Calculator

Get an estimate of the money you need to pay on
the day you officially own your new home.

How to use our Mortgage Payment Calculator

  1. Purchase Price Start here by entering the amount you are willing to pay to purchase a property.
  2. Down payment Enter the cash amount you are ready to pay upfront for the property.
  3. Amortization This is the total time required to pay off your full mortgage amount. It ranges from 25-30 years.
  4. Mortgage rate It is the interest rate at which a lender will offer you the mortgage against your new home.
  5. Payment frequency How often will you pay the installments monthly, biweekly, quarterly, or annually? Enter your payment frequency here.
  6. Total Monthly Mortgage Payment This result will indicate the amount you will pay at every installment based on your financial needs.
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Profile picture of Shivani Kaul
Written By Shivani Kaul

Content manager

Updated April 3, 2025

What is a Closing Cost Calculator?

It's closing day, which means you’ve reached the penultimate stage in your home buying journey. You take possession of your new home on the closing day and the final legal formalities, exchange of keys and title or ownership take place on the final day at your lawyer or notary’s office.

Your mortgage lender transfers the money to your lawyer to complete the process and you hand over the down payment (minus the deposit) as well as the closing costs.

To be clear, closing cost is the amount you must be ready to keep aside on the date when the sale of the property becomes final, other than the down payment. It is usually 1.5% to 4% of the purchase price. 

Once this process is complete, the lawyer pays the seller, registers the home in your name and gives you the title deed and keys to your new home.

Closing costs include the legal fees, transfer fees, disbursements and other costs. These are in addition to the down payment and the GST, PST and HST (whichever tax is applicable, depending upon the province).

Our RATESDOTCA Closing Cost Calculator can do the math for you. All you need to do is input the required information like the down payment, asking price, land transfer tax, first-time homebuyer rebate, legal fee, to make sure the estimate is as accurate as possible. The location of your home is vital in calculating closing cost, so make sure you input the right location of your future home.

Types of Closing Costs

Closing cost is likely to be different for each buyer depending on factors such as location, purchase price, among others. We walk you through some of the most common closing costs that you would come across during your house dealings:

  1. Land Transfer Tax - Many provinces and municipalities in Canada require the buyer to pay a land transfer tax, usually a percentage of the purchase price of the home.
  2. CMHC Mortgage Insurance – Anyone buying a home with a downpayment of under 20% will have to factor in mortgage insurance. The mortgage lender pays an insurance premium on mortgage loan insurance. It’s calculated as a percentage of the mortgage. The lender then passes this cost on to the buyer. The buyer can pay it in a lump sum or add it to their mortgage and include it in your payments.
  3. Lawyer Fee – A legal advisor or lawyer, who is licensed to practice law and who will protect legal interests and review any contracts, will play a crucial role in your home buying process. The lawyer will offer his or her services for a charge or fee. In Quebec, a notary replaces the lawyer in such dealings.
  4. Title Insurance – Title insurance is a policy that protects residential or commercial property owners and their lenders against losses related to the property’s title or ownership. It can also simplify the closing process for your lawyer, thereby saving you time and money
  5. Title Registration – In Ontario, all private property ownership is registered with the government. The land registration system contains official records of land and property in Ontario, including the title, deed, and other land documents.
  6. HST and HST Rebate – HST or Harmonized Sales Tax in housing refers to the sale or purchase of housing in provinces where HST is implemented. If you purchase a new house from a builder, the HST must be included in the purchase price. If you meet certain conditions, you may qualify for a new housing rebate on the GST/HST you paid. Eligibility includes purchasing new or substantially renovated housing from a builder, including housing on leased land, with the intent of using it as your primary residence or that of a family member. Additionally, if you construct or have someone else construct your own home, or substantially renovate it, and the fair market value upon completion is below $450,000, you may be eligible for the rebate, provided it will be used as your primary residence.
  7. First-Time Home Buyer rebate – Under the First-Time Home Buyer Incentive, the buyer who acquires a qualifying home can claim a non-refundable tax credit of up to $750. The value of the HBTC is calculated by multiplying $5,000 by the lowest personal income tax rate (15% in 2022).
  8. Home Inspection Fee – It is highly advisable to include a condition in your purchase offer that requires a favorable home inspection conducted by a professional home inspector. This inspection aims to uncover any hidden issues within the property that may have potential long-term consequences or costly repair needs. This precaution is particularly crucial when considering a freehold property, as you will bear the sole responsibility for all future expenses. While the typical inspection fee amounts to approximately $500, it has the potential to save you thousands, if not more, in repair costs compared to uncovering the home's flaws after finalizing the contract.
Shivani Kaul

Shivani Kaul, Content manager

Shivani is a Content Manager at RATESDOTCA, focusing on mortgages. She is an experienced communication and marketing professional who specializes in content strategy and SEO optimization. Shivani ensures that our written materials meet the highest standards of quality and relevance.

 

She holds a Digital Marketing Management certificate from the University of Toronto, a Business Communications certificate from the University of British Columbia, a Masters degree in Mass Communication from Symbiosis Institute of Media and Communications and a Bachelor's degree in English from the University of Delhi.

 

Shivani has previously worked as a deputy digital productions editor with PMNA-The Canadian Press, and as an editor with The Globe and Mail, Toronto Star, and the Investor's Digest of Canada. She has also worked in reputed news media groups in India and the Middle East.

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