What does it really cost to purchase a home?

The sticker price on a home is the smallest part of what it really costs to buy. By the time a typical buyer in Halifax, Moncton, Calgary, or Charlottetown gets the keys, they've written cheques for a down payment, a deed transfer tax, a lawyer, an appraisal, title insurance, property tax adjustments, sometimes a home inspection, and — if their down payment is less than 20% — they've absorbed a mortgage default insurance premium that's been rolled into the loan they'll be paying for the next 25 to 30 years. The all-in monthly obligation includes the mortgage, the prorated property tax, and (for most owners) some kind of home insurance. None of that is hidden, but almost none of it is in the listing price either.

That's the gap this calculator tries to close. The intent is to give you a single screen that mirrors the worksheet a mortgage broker would walk you through on a real first call: one column with 5% down, one with 20% down, every line item visible, and a one-line summary at the bottom that tells you what the monthly difference and the cash-up-front difference actually look like in dollars. The numbers themselves are the same numbers your lawyer, your lender, and your broker will eventually use — semi-annual compounding on the mortgage, the federally legislated CMHC premium tiers, your province's deed transfer tax, and a realistic range on legal and appraisal fees.

Closing costs in Halifax and HRM

Halifax Regional Municipality has the highest deed transfer tax in Atlantic Canada at 1.5% of the purchase price — that's $7,500 on a $500,000 home and $11,250 on a $750,000 home. The tax is provincial-municipal: every Nova Scotia municipality sets its own rate, and HRM has the highest. On top of that, expect $1,500 to $2,500 for the lawyer's fee (which usually includes title search, document prep, and registration), $400 to $600 for the appraisal if your lender requires one (most do on conventional files), and $250 to $400 for title insurance. Property tax adjustments — paying the seller back for tax they've prepaid past closing — are usually a few hundred dollars depending on the time of year. All in, HRM closing costs typically land between $9,500 and $14,500 on a $500,000 purchase, and they're due in certified funds at the lawyer's office on closing day.

Closing costs across Nova Scotia

Outside HRM, deed transfer tax in Nova Scotia is typically 1% — half what you'd pay in Halifax. That's $5,000 on a $500,000 home in Truro, New Glasgow, Sydney, Bridgewater, Kentville, Wolfville, Antigonish, Amherst, or anywhere else outside HRM's boundary. Legal, appraisal, and title costs are essentially the same as in HRM. The exception is that some smaller municipalities have a 1.5% rate (always confirm with your lawyer before closing). Total closing costs outside HRM on a $500,000 home are usually $7,000 to $11,000.

Buying in New Brunswick

New Brunswick charges a Property Transfer Tax of 1% of the greater of the consideration paid and the property's assessed value, which the buyer pays on closing. On a $400,000 home in Moncton, Saint John, Fredericton, Dieppe, or Riverview, that's $4,000. Legal fees in NB tend to run $1,200 to $2,000 (slightly lower than NS on average), appraisal is $350 to $500, and title insurance is $250 to $400. New Brunswick also charges provincial sales tax on the CMHC insurance premium for insured mortgages — that's one of the few items you can't roll into the mortgage and must pay in cash on closing.

Buying in Alberta

Alberta has no deed transfer tax — full stop. That's a huge cash-flow advantage for Alberta buyers compared to Atlantic Canada. Instead, Alberta charges much smaller Land Titles registration fees: $50 base plus $2 per $5,000 of property value, plus the same formula on the mortgage. On a $500,000 home with a $400,000 mortgage, that's roughly $360 in land title fees total. Legal fees in Alberta are typically $1,500 to $2,000, appraisal $400 to $600, and title insurance $250 to $400. Closing costs on a $500,000 Calgary or Edmonton purchase usually land at $2,500 to $3,500 — about $5,000 less than the same purchase in Halifax.

Buying in PEI

Prince Edward Island charges a Real Property Transfer Tax of 1% of the greater of the sale price and the assessed value. Properties assessed at $30,000 or less are exempt — which is essentially every vacant lot but no inhabitable home. First-time buyers who are PEI residents and occupy the property as a principal residence may also qualify for an exemption (always check current rules with your lawyer). Legal fees in PEI run $1,200 to $1,800, appraisal $350 to $500, and title insurance $250 to $400. Closing costs on a $400,000 home in Charlottetown, Summerside, Stratford, or Cornwall typically total $5,800 to $7,800.

Land transfer tax across the rest of Canada

Ontario uses marginal LTT brackets: 0.5% on the first $55,000, 1.0% to $250,000, 1.5% to $400,000, 2.0% to $2,000,000, and 2.5% above. A $500,000 Ontario home owes $6,475. Toronto buyers pay a Municipal LTT on top that doubles the bill. First-time buyers get up to $4,000 back ($8,475 combined in Toronto).

British Columbia Property Transfer Tax is 1.0% on the first $200,000, 2.0% to $2M, 3.0% to $3M, and 5.0% above (residential). First-time buyers get a full exemption under $835,000 and a sliding partial exemption up to $860,000.

Alberta charges no land transfer tax — only Land Titles registration fees: $50 + $2 per $5,000 of property value, plus $50 + $1.50 per $5,000 of mortgage amount. A $500K Alberta property registration is about $250 before the mortgage fee.

Manitoba LTT is marginal: 0% to $30K, 0.5% to $90K, 1.0% to $150K, 1.5% to $200K, 2.0% above, plus a $70 administrative fee.

Saskatchewan has no provincial LTT — only a title transfer fee: $0 under $500, flat $25 from $500 to $6,300, and 0.4% above $6,300.

Québec Welcome Tax (Droits de mutation) marginal brackets: 0.5% to $58,900, 1.0% to $294,600, 1.5% to $589,000, and 1.5% above (Montréal adds extra brackets up to 3.5% over $1.083M).

Newfoundland and Labrador charges a registration fee of $100 base + $0.40 per $100 of price over $500 — by far the lowest in Canada on a typical purchase.

Yukon, Northwest Territories, and Nunavut use flat-fee land title schedules. Yukon is roughly $400 all-in on a typical home; NWT and Nunavut bill $1.50 per $1,000 of property value (with minimums) plus a separate mortgage fee. Always confirm with the relevant Land Titles Office.

5% down vs 20% down: which is better?

The simplest way to think about it: 5% down minimizes the cash you need on day one, but maximizes your mortgage, the CMHC premium you pay interest on for decades, and your monthly payment. 20% down does the opposite. The breakeven question is whether the extra $75,000 you'd put down (on a $500K home) earns you more by sitting in the mortgage than it would invested elsewhere. At a 4.49% mortgage rate, that $75,000 saves you roughly $4,750 a year in interest the first year, dropping over time as the balance amortizes. Invested in a balanced portfolio averaging 6% annual return, the same $75,000 would earn $4,500 in year one — basically a wash. Where 5% down wins decisively: when you don't have $100,000 of liquid cash, or when the alternative use of the cash (paying down higher-interest debt, building emergency reserves, investing in a high-conviction opportunity) is worth more than the CMHC premium savings.

CMHC insurance premiums explained

CMHC mortgage default insurance is required by federal law whenever the down payment is less than 20% of the purchase price. There are three insurers — CMHC, Sagen, and Canada Guaranty — and they charge essentially identical premiums. The tiers: 4.00% of the mortgage with 5% to 9.99% down, 3.10% with 10% to 14.99% down, 2.80% with 15% to 19.99% down, and zero with 20% or more down. The premium is added to the mortgage, not paid in cash, so a buyer with 5% down on a $500K home borrows $475,000 plus $19,000 in premium, for a total mortgage of $494,000. Amortizations over 25 years carry a surcharge of 0.20%. In New Brunswick and PEI, the provincial sales tax on the insurance premium has to be paid in cash on closing — that's one item that can't be rolled in. The premium pays for the insurance the lender requires; you, the borrower, don't benefit from it, but it's the price of being able to buy with less than 20% down.

Thinking of breaking your current mortgage to take advantage of a lower rate? Run our IRD calculator first to see what the penalty would actually cost.