Buying a Home in Canada? 5 Extra Costs That Can Add Up to 4% of the Price

By Tahani Elghazaly
Published August 10, 2026

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Canada’s Financial Consumer Agency says homebuyers should typically budget an additional 1.5% to 4% of the purchase price for upfront and closing costs — money that comes on top of the down payment.

For a $600,000 home, that could mean having roughly $9,000 to $24,000 in additional funds available before the purchase is completed.

So where does that money go?

Legal and property registration fees
A lawyer or notary handles the legal side of the transaction, including transferring ownership and registering documents. Depending on the province or municipality, buyers may also face land transfer or registration-related charges.

Home inspection
An inspection can uncover problems with the roof, plumbing, electrical system or structure before the buyer takes ownership. CMHC uses approximately $500 as an illustrative cost for a home inspection, although actual fees vary by property and service.

Appraisal or property survey
A lender may require an appraisal before completing the mortgage, while some transactions may require a current property survey or location certificate. These are additional costs that may arise before closing.

Title insurance
Title insurance can form part of the closing expenses and provides protection against certain problems involving ownership or title to the property.

Property tax and prepaid expense adjustments
If the seller has already paid property taxes or certain other property expenses covering a period beyond the closing date, the buyer may have to reimburse the seller for their share when the transaction closes.

For first-time buyers, these expenses matter because the cash required to complete a home purchase can be significantly higher than the down payment alone.

The question, therefore, is not only how much a lender is prepared to finance, but also: How much cash will you need to actually reach closing day and receive the keys?