Closing Costs – Budgeting for Your Home Purchase

closing costs

Closing Costs – Budgeting for Your Home Purchase

When you are planning to buy a home in Ottawa and surrounding areas, it is important to budget for the closing costs associated with your purchase. There are costs at the time of purchase and costs at time of closing. There are also different costs to plan for when buying new construction.

Costs at time of purchase:

  • Home inspection and wood fireplace inspection fees
  • For rural properties: water testing, well inspection, septic inspection
  • Deposit ( typically due when offer is accepted)
  • Appraisal fee, if an appraisal is required for mortgage approval by your lender
  • Status certificate documents if a condominium

Costs at time of closing

  • Mortgage Loan Insurance Application Fee and premium if a high ratio mortgage (less than 20% down payment). A minimum of 5% of the purchase price is required for a high ratio mortgage for a home with a purchase price of a $500,000 or less, this increases above $500,000, click here for more info 
  • Down payment (less your deposit)
  • Land Transfer tax (for information click here) Note:  First time home buyers that have never owned a home anywhere in the world may have an exemption of up to $4,000.  Read more here
  • Prepaid property taxes and/or Utility Bills/Oil Heating to Fill Tank, etc. (if applicable)
  • Title Insurance (if required or desired, discuss with your lawyer)
  • Legal Fees and Disbursements

     Costs When Buying New Construction

  • Tax – 13% H.S.T. needs to be paid upfront.
  • Builder Fees – There may be unexpected costs that need to be paid to the builder i.e. development fees and extra funds for a condominium’s reserve fund.
  • Tarion Enrolment Fee – New homes are covered by a warranty program run by Tarion. This fee is sometimes included in the purchase price but other times it may be payable at closing.


Whether purchasing or selling a home in Kanata, Stittsville, Barrhaven and greater Ottawa we are here every step of the way to guide you through all of the different stages. We are always happy to assist and here to answer any real estate questions you may have!

Feel free to Contact us