Closing costs, all of them.
On top of your down payment, keep a cushion aside for closing costs: welcome tax, notary fees, inspection, adjustments, mortgage-related costs. None of them is a surprise if you plan ahead, which is exactly what we do together before you make an offer.
Updated July 11, 2026
The listed price is never the full cost of buying a property. Alongside your down payment sits a set of expenses we call closing costs. They aren't traps. They're known costs, and I walk my clients through them well before we ever write an offer.
This page is the starting point. It ties together two tools on the site (the welcome-tax calculator and the mortgage calculator) and places each cost in the order it reaches you. My baseline advice: set aside a cushion beyond your down payment. Exactly how much depends on the property, your financing, and whether the home is new or resale, so let's walk through each item one at a time.
What are closing costs, and how much should I budget?
Closing costs are all the expenses that come on top of the purchase price to get the deal done: notary fees, inspection, welcome tax, adjustments, mortgage-related costs, insurance. Some are paid on signing day, others arrive afterward.
I won't hand you a magic percentage, because there isn't one: the total varies with the price, the municipality, your down payment, and the type of property. The right way to handle it is to set aside a cushion beyond your down payment, then cost out each item with the tools and the real figures. We do that math together before the offer, so nothing catches you off guard.
The welcome tax: what is it and when do I pay it?
The welcome tax, or transfer duty, is a municipal tax every buyer pays when they purchase a property. It is calculated from the tax base (usually the higher of the price paid or the municipal assessment) using brackets. The rates and brackets change, and some municipalities like Montreal add their own tiers.
The key point for your budget: it is not due at the notary. Your municipality mails you the bill, generally a few weeks to a few months after signing. Set the amount aside so you are not caught off guard when the notice arrives.
Estimate it ahead of time
I have a dedicated guide and a welcome-tax calculator on the site. Enter the price, get an estimate, then we confirm the exact figure for your municipality before the offer.
Notary fees: who pays, and for what?
Here, the notary drafts the deed of sale and the mortgage deed, checks the title, and handles the money in the transaction. Since the buyer usually covers these fees, the buyer is also the one who chooses the notary.
Fees vary from one office to another and with the complexity of the file. Ask for an estimate early, and know that the notary's closing statement will give you the exact figure a few days before signing. If you don't have a notary, I can recommend one I have worked with for years.
The home inspection: an expense or a protection?
The home inspection is a cost you pay before the purchase, not at closing, but it belongs in your buying budget. An inspector examines the structure, roof, plumbing, and electrical, and hands you a report. It is what turns a gut feeling into an informed decision.
I almost always recommend one. The cost is modest next to what a bad surprise can represent, and the report becomes a legitimate negotiating tool if work is needed.
GST and QST: do I pay them on my purchase?
On an existing (resale) property, no: GST and QST do not apply to the sale price. That covers the large majority of residential transactions.
On a new property, or one that has undergone major renovations, yes: GST and QST apply, and they are often already included in the builder's listed price, but always confirm this. There are also new-housing rebates that can reduce the bill depending on the price and on whether it is your primary residence.
Adjustments at closing: what gets split?
When the seller has prepaid expenses that cover a period after your possession date, you reimburse them on a pro-rata basis. These are called adjustments. The notary calculates them and they appear on your closing statement.
- Municipal and school taxes the seller already paid for the year.
- Condo fees (co-ownership charges) prepaid for the month or quarter.
- Sometimes heating oil left in a tank, or other prepaid expenses.
An adjustment can go either way, but on the buyer's side, expect mainly to reimburse the portion of the taxes the seller already paid. The notary works out the figure to the day.
Mortgage-related costs: appraisal and default insurance?
Two costs come up often on the financing side. The first is the property appraisal: your lender may require a certified appraiser to confirm the home's value before releasing funds. Sometimes the lender absorbs it, sometimes it falls to you, so ask ahead.
The second is mortgage default insurance. When your down payment is under 20% of the price, the law requires default insurance (for example through CMHC). It protects the lender, not you, and its premium is usually added to your loan amount rather than paid in cash at closing. The QST on that premium, however, is generally paid at signing.
Cost out your payment
The site's mortgage calculator helps you estimate your monthly payment based on the down payment. For the exact default-insurance premium and current rates, we confirm with your lender or mortgage broker.
Title insurance: useful or optional?
Title insurance is optional. It protects you and your lender against certain title-related problems (fraud, encroachment, hidden title defects). Some lenders suggest it, others don't.
It is not a required cost here, where the notary's work already covers the title search. Talk it over with your notary to decide whether it makes sense in your case: it is a one-time expense, not a recurring one.
Where do moving and setup fit in?
These aren't closing costs in the strict sense, but they land at the same moment and weigh on the same budget. Truck or movers, connecting services (Hydro, internet, insurance), small purchases for the new home: it adds up fast.
I mention it because it's often the blind spot. We plan the down payment to the dollar, then forget we also need to fill the fridge and turn on the heat. Put a share of it into your cushion.
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Frequently asked questions
How much should I set aside for closing costs?
There is no single percentage: the total depends on the price, the municipality, your financing, and the type of property. The right approach is to keep a cushion beyond your down payment, then cost out each item with the real figures. We do that math together before the offer to avoid surprises.
Do I pay GST and QST on a resale home?
No. GST and QST do not apply to the price of an existing property. They apply on a new or substantially renovated home, where they are often already included in the builder's price. A new-housing rebate can reduce the bill: confirm the rules with Revenu Québec, the CRA, and your notary.
When is the welcome tax due?
Not at signing. Your municipality mails you the bill, generally a few weeks to a few months after the purchase. Plan for the amount ahead of time: my welcome-tax calculator gives you an estimate.
Does mortgage default insurance add to my cash costs?
The premium itself (for example CMHC) is usually added to your loan amount, so you don't pay it in cash at closing. The QST on that premium, though, is generally paid at signing. It applies when your down payment is under 20% of the price.
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This guide is general information to help you make sense of things, not legal, tax, or financial advice. Rules change and every situation is different, so confirm anything that affects a decision with the right professional, a notary, lawyer, accountant, or mortgage broker, or reach out and I'll point you the right way.
