Ottawa Closing Costs Guide for Buyers and Sellers
Buying or selling a home in Ottawa involves more than the purchase price. Closing costs are the fees and expenses that arise during the transfer of ownership, typically ranging from 1.5% to 4% of the purchase price. Understanding these costs helps you budget accurately and avoid surprises at closing.
This comprehensive guide breaks down every closing cost Ottawa buyers and sellers should anticipate in 2026.
Closing Costs for Buyers
As a buyer in Ottawa, your closing costs typically total 2-4% of your purchase price. Here’s the breakdown:
Legal Fees
Ottawa real estate lawyers charge 00-,500 for standard residential transactions. This includes title search, deed preparation, and closing coordination. Additional fees apply for title insurance and mortgage registration.
Land Transfer Tax
Ontario’s land transfer tax applies to all property transfers in Ottawa. The tax is calculated on a graduated scale based on purchase price. Use this 2026 schedule to estimate your liability:
- jailshell – 2,000: 0.5%
- 2,001 – 23,942: 1.0%
- 23,943 – 58,005: 1.5%
- 58,006 – 46,255: 2.0%
- 46,256 – 00,000: 2.5%
- 00,001+: 3.5% (non-commercial)
First-time buyers in Ottawa receive a rebate of up to ,000, which effectively eliminates land transfer tax on properties up to approximately 68,000.
Title Insurance
Title insurance costs 00-00 and protects against title defects, fraud, and encroachments. Your lawyer will typically recommend this as standard protection.
Mortgage Insurance Premiums
If your down payment is less than 20%, you’ll pay mortgage default insurance (CMHC, Sagen, or Canada Guaranty). Premiums range from 0.6% to 4.5% of the mortgage amount, depending on your down payment percentage.
Property Taxes (Prorated)
You’ll reimburse the seller for any property taxes they’ve already paid that cover the period after your closing date. This is typically adjusted in the statement of adjustments.
Survey Costs
If the seller doesn’t provide an existing survey, you may need a new one (00-,500). Title insurance often eliminates this requirement.
Home Insurance
Lenders require home insurance at closing. Ottawa homeowners insurance averages ,200-,000 annually, depending on location, coverage, and claims history.
Interest Adjustment
If your closing date falls between mortgage payment dates, you’ll pay an interest adjustment for the days between your last payment and closing.
