The Closing Cost Surprise
Many first-time buyers in Ottawa save carefully for their down payment, only to be caught off guard by the additional costs due on closing day. These "closing costs" typically range from 1.5% to 4% of the purchase price: on a $650,000 home, that's $9,750 to $26,000 on top of your down payment.
Here's every cost you need to know about.
The Big Ones
1. Land Transfer Tax (LTT) Ontario provincial LTT ranges from roughly $5,500 on a $450,000 condo to $14,500 on an $850,000 home. First-time buyers get a rebate of up to $4,000. (See our full LTT guide for exact numbers.)
2. CMHC Insurance Premium PST If your down payment is under 20%, you pay CMHC mortgage default insurance. The premium is rolled into your mortgage, but the 8% Ontario PST on that premium is due in cash at closing. On a $600K home with 10% down, this is typically $1,200–$1,500.
3. Legal Fees and Disbursements You need a real estate lawyer in Ontario. It's not optional. Fees in Ottawa typically run $1,500–$2,500 for a standard purchase. Disbursements (title searches, registration fees, etc.) add another $500–$1,000 on top. Budget $2,000–$3,500 total.
The Mid-Sized Costs
4. Title Insurance Most lawyers require title insurance to protect against title defects, survey issues, and fraud. Cost: $200–$400 for a typical Ottawa residential purchase.
5. Home Inspection Highly recommended before any offer, a licensed home inspector will examine structure, roof, HVAC, plumbing, and electrical. Ottawa home inspectors typically charge $400–$600. If any issues are found, it can save you thousands.
6. Property Tax Adjustment At closing, the seller will have prepaid property tax for part of the year. You'll reimburse them for the portion covering the time you own the home. This varies widely but can be $1,000–$3,000 depending on the closing date and property tax amount.
7. Utility and Condo Fee Adjustments If there's a condo, the seller may have prepaid condo fees; you'll owe them a pro-rated share. Budget a few hundred dollars.
The Smaller Costs
8. Home Appraisal Your lender may require an independent appraisal of the property, especially if the purchase price seems high or you're getting a large mortgage. Cost: $300–$500. Some lenders cover this; ask upfront.
9. Moving Costs Not a closing cost per se, but budget $1,500–$5,000 for professional movers within Ottawa depending on the size of your home and distance.
10. Immediate Repairs/Setup New homeowners often underestimate first-month costs: changing locks ($200), window coverings ($500–$2,000), appliances if not included ($2,000–$5,000), lawn equipment, etc.
Quick Budget Summary
For a $650,000 Ottawa home with 10% down:
| Item | Estimated Cost | |---|---| | Land Transfer Tax (after rebate if first-time) | $5,475–$9,475 | | Legal fees + disbursements | $2,000–$3,500 | | CMHC PST (if applicable) | $1,200–$1,500 | | Property tax adjustment | $1,000–$2,500 | | Home inspection | $400–$600 | | Title insurance | $200–$400 | | Appraisal | $300–$500 | | Total | $10,575–$18,475 |
The Rule
Budget at least $15,000–$20,000 in closing costs for a typical Ottawa home purchase, in addition to your down payment. Keep this in a savings account separate from your down payment funds so it's clearly available on closing day.
