Closing Costs 101: What Every Buyer Needs To Know

When you’re buying a home in Ottawa, your down payment is just the beginning. Closing costs are a critical part of the budget—and they can catch you off guard if you’re not ready.

Let’s break down the most common closing costs in Ontario so you can move forward with clarity and confidence.

1. Land Transfer Tax

This is usually your biggest cost outside of the down payment. In Ontario, land transfer tax is based on the purchase price. Ottawa doesn’t charge a separate municipal tax (unlike Toronto), but the provincial portion still adds up.

First-Time Buyer Tip: You could qualify for a rebate of up to $4,000.

Pro Tip: Talk to your lawyer or lender early to calculate this cost accurately.

2. Legal Fees

A real estate lawyer handles your title search, reviews the Agreement of Purchase and Sale, and manages the transfer of ownership. Fees usually range from $1,800 to $2,500 in Ottawa.

Why it matters: Legal review protects you from unpaid taxes, title issues, or unpleasant surprises after closing.

3. Home Insurance

Your lender will require proof of home insurance before closing. This protects both your home and your belongings.

Why it matters: It’s mandatory for financing and gives you peace of mind right from move-in day.

4. Utility Set-Up Fees

You may face set-up or reconnection charges for hydro, water, gas, and internet. These are easy to forget but important to plan for.

Pro Tip: Schedule these early so your home is ready on day one.

5. Other Costs to Keep in Mind

• Home inspection (if not already done)

• Title insurance (often bundled into legal fees)

• Moving and storage

• Property tax adjustments based on your closing date

Final Thoughts

Closing costs are a normal part of the buying process. When you understand what they include—and when they’re due—you can plan with confidence and avoid surprises.

Got questions about closing costs in Ottawa? Let’s chat. I’m happy to help you plan your move with clarity and confidence.