Closing Costs When Buying a Home in Ottawa

Closing costs are expenses paid in addition to your down payment to complete the legal transfer of ownership.

In Ottawa, buyers should typically budget 2% – 4% of the purchase price.

Example:

$600,000 home → roughly $12,000–$24,000 closing costs.

The Main Closing Costs

Ontario Land Transfer Tax (Biggest Cost)

Unlike Toronto, Ottawa buyers pay only the provincial land transfer tax.

Ontario Land Transfer Tax Rates

First $55,000 → 0.5%
$55,001–$250,000 → 1%
$250,001–$400,000 → 1.5%
$400,001–$2,000,000 → 2%

Example:

$600,000 home ≈ $8,475 tax

First-Time Buyer Rebate

Eligible buyers may receive up to $4,000 rebate.

Real Estate Lawyer Fees & Disbursements

Typical Ottawa costs:

Legal fee: $1,000 – $1,800
Disbursements: $300 – $600

Lawyers handle:

• Title searches

• Mortgage registration

• Closing funds

• Ownership transfer

Title Insurance

Typical cost:

$250 – $450

Usually required by lenders.

Property Tax Adjustments

Buyer reimburses seller for prepaid:

• Property taxes

• Condo fees

• Utilities

Mortgage-Related Costs

Appraisal Fee: $300 – $500

Mortgage Default Insurance: added to mortgage if required.

Home Insurance

Proof required before funding.

Interest Adjustment

Partial interest payment covering time until first mortgage payment.

Costs Some Buyers Forget

• Moving expenses

• Immediate repairs

• Condo status certificate fees

Experts recommend budgeting 3–4% overall.

Simple Rule of Thumb

Budget about $15,000 per $600,000 purchase price in Ottawa.