Checklist: the costs and taxes of buying a home in Canada

Updated October 1, 2026 · Checked by the Tax-Services.ca editorial team · How we check

The price on the listing is only part of what you’ll pay. This list covers the costs that surprise people at closing, and the accounts that can help. Print it, and bring it to your first meeting with your lender. How much should you set aside? The Financial Consumer Agency of Canada’s home buying page says to expect 1.5% to 4% of the price in closing costs, so about $6,000 to $16,000 on a $400,000 home. Your own numbers will differ, so run them below.

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Before you make an offer

• Your savings plan: a first home savings account, your RRSP and the Home Buyers’ Plan, if they apply to you.
• If you’ll borrow from your RRSP, you’ve read the CRA’s Home Buyers’ Plan page, which sets the limit at $60,000 and requires you to repay what you take out.
• A budget that includes closing costs on top of the down payment.
• A mortgage pre-approval, so you know your range. It isn’t a promise, though.

Costs on top of the price

Some of these depend on where you live and what you buy, so check each one. A few bucks here and there add up fast.

• Land transfer tax or the equivalent in your province, and any extra city tax.
• Legal fees and the cost of title insurance.
• A home inspection and, if your lender asks for it, an appraisal.
• Mortgage default insurance, if your down payment is under 20%.
• GST or HST, if the home is new or heavily renovated.
• Adjustments for property tax and utilities, which your lawyer calculates at closing.
• Home insurance, which lenders usually want in place before closing.

After you move in

• Report the move to the CRA and update your address everywhere.
• Keep the purchase papers for as long as you own the home, since you’ll need them when you sell, and you won’t want to hunt for them then.
• If you’re a first-time buyer, remember the first-time home buyers’ tax credit on your next return.

Is the down payment part of the closing costs?

No. The down payment goes toward the price. Closing costs are the extra bills on top, and they usually come due on or just before closing day. Your lawyer gives you the final figure, so keep a little cushion in the account.

Run the numbers

Don’t guess at the big items. It doesn’t take long. The land transfer tax calculator and the closing costs calculator give you a figure for your price, and the mortgage affordability calculator shows what you can borrow.

Read the home buying and selling guide for how the taxes work, and the property and tax guide for the rest. Have you picked a province yet? The province index lists them all.

You’ll feel better with a number in hand, even a rough one, because a surprise at the lawyer’s office is much harder to fix than a line in your budget today.

Frequently asked questions

Is land transfer tax the same everywhere?

No. Some provinces and cities charge it, others use a different tax, and the rates differ. Use the calculator for your own place and price.

Do I pay GST or HST on a home?

On a new home or a big renovation, usually yes. On most resales of a used home, no.

What is the FHSA?

A first home savings account. You deduct what you put in, and you can take the money out tax-free to buy a first home.