TL;DR
The safest plan is simple: build a documented cash-to-close number early, pressure-test it, and keep a buffer so your file does not fail in the final week.
What belongs in your closing-cost checklist
FCAC's home-buying guidance outlines common costs buyers should plan for, including legal fees, taxes, and other one-time charges due near closing.
Use this as your baseline checklist before you write an offer
- legal or notary fees and disbursements
- land or property transfer tax where applicable
- title insurance and registration-related charges
- appraisal or lender-specific administration fees
- property tax, condo fee, and utility adjustments
- home insurance effective on possession day
- moving and immediate setup costs
Closing-cost timeline: what gets paid when
| Cost category | Typical timing | Planning note |
|---|---|---|
| Deposit | Usually with accepted offer | Treat deposit as committed funds, not flexible reserve cash. |
| Inspection / appraisal | During condition period | Budget these early so condition decisions are not delayed. |
| Legal/notary + disbursements | Near closing | Request an early estimate and final statement before funding day. |
| Transfer tax and registration costs | Closing day | Province and property type can materially change this line item. |
| Adjustments and move-in setup | Closing to first month | Keep a buffer for utility and property-tax proration surprises. |
Cash-to-close formula most buyers need
Cash to close = down payment + closing costs + adjustments + reserve buffer.
A common planning range for closing costs in Canada is often around 1.5% to 4% of purchase price, but your real number can be higher depending on taxes, province, and property details. Use calculators, then validate with your legal professional before commitment.
Province and property factors that change your total
Transfer-tax rules, rebates, and adjustments differ by province and municipality. Ontario and BC publish their own transfer-tax frameworks, and CRA guidance covers GST/HST new housing rebate details where applicable.
If you are moving quickly, confirm province-specific costs before waiving financing conditions.
Alternative paths when your cash-to-close is tight
Use an alternatives framework before forcing a weak file
- Purchase-band reset: lower target price to recover liquidity and reduce downstream pressure.
- Timeline reset: delay closing window to save additional cash and document funds cleanly.
- Program optimization: confirm eligibility for first-time buyer tools and applicable rebates.
- Structure reset: revisit down-payment level and risk profile with a broker before offer submission.
The right choice is the one that still closes smoothly under non-perfect conditions.
Decision psychology: avoid expensive closing-week mistakes
- Anchoring: focusing on purchase price and ignoring total cash required.
- Present bias: rushing into possession dates without enough reserve liquidity.
- Status-quo bias: copying someone else's checklist instead of validating your own province and file details.
- Regret aversion: delaying hard cost conversations until choices are limited.
Countermove: run one written scorecard for affordability, cash-to-close, and execution reliability before you finalize any offer timeline.
60-30-7 day closing-cost execution plan
60 days out
run closing-cost and cash-to-close calculators with conservative assumptions.
30 days out
confirm legal estimate, insurance setup, and transfer-tax assumptions.
7 days out
reconcile final statement of adjustments and verify all funds are available in the right accounts.
Best next step
If you are actively shopping, build your cash-to-close number this week and keep a written buffer rule before making offers.
