What Closing Costs Should I Budget for a Home in Hawkesbury and Prescott-Russell?
Buying a home involves more than the purchase price and down payment. Closing costs are the additional expenses paid around the time the transaction closes. In Hawkesbury and across Prescott-Russell, the exact amount depends on the property, the financing, the closing date and the professionals you choose.
This Ontario-focused guide is a planning tool, not a quote. Figures vary, and your lawyer, lender, insurer and tax professional can confirm the amounts that apply to your situation.
The main closing costs to plan for
Ontario land transfer tax
Ontario land transfer tax (LTT) is generally payable when the deed is registered. It is calculated from the purchase price using Ontario’s current tax brackets. A lawyer handling the closing can calculate the amount for the specific transaction.
If you are a qualifying first-time homebuyer, you may be eligible for the Ontario First-Time Homebuyer Refund, subject to the program’s rules and maximum refund. Eligibility can depend on your history of home ownership and other requirements. Do not assume the refund applies until your lawyer or another qualified professional confirms it.
There may also be land transfer tax considerations if a buyer is purchasing in another jurisdiction, such as Quebec. Ask for advice when your circumstances cross provincial lines.
Lawyer and title-related costs
Budget for the real-estate lawyer’s professional fee plus applicable taxes and disbursements. Typical disbursements can include title search work, registration charges, title insurance, document preparation and other transaction-specific items. Some lenders require title insurance; your lawyer can explain what is included and why.
Ask for a written estimate that separates the professional fee, taxes and expected disbursements. The final statement can change if the file becomes more complex.
Inspection and property due diligence
A home inspection is often a useful condition of an offer, but it is not a guarantee that every issue will be found. The fee varies by property type, size and scope. Older homes, rural properties and homes with additional systems may require more specialized inspections or reports.
Possible additional due-diligence costs can include septic, well-water, chimney, structural, environmental or other specialized checks, where relevant. Confirm what is included before booking.
Financing and lender costs
Your lender or mortgage professional can identify financing-related charges. Depending on the mortgage and borrower, these may include lender fees, broker fees, an appraisal cost if the lender requires one, and other administrative or registration expenses. An appraisal is listed here as a possible transaction cost-not as an Opinion of Value service offered by this team.
Ask how the lender handles any fee, when it is due and whether it is refundable. A mortgage pre-approval is not the same as final approval for a particular property.
Adjustments on the statement of adjustments
The statement of adjustments allocates certain prepaid or outstanding items between buyer and seller as of the closing date. It can include property taxes, local improvement charges, fuel, rent or other property-specific items. The adjustment may be a credit to you or an amount you owe, depending on what has already been paid and the closing date.
Your lawyer should review the statement with you before closing. For rural or multi-unit properties, ask what property-specific items may need to be considered.
CMHC or other mortgage insurance, and the deposit
If your down payment is below the threshold where mortgage default insurance is required, the insurance premium is commonly added to the mortgage. The lender or mortgage professional can explain the premium and any applicable provincial sales tax treatment. The premium is different from your deposit and down payment.
A deposit is usually submitted with an accepted offer according to the agreement. It is normally credited toward the purchase price on closing, but it still needs to be available on time. Confirm the amount, payment method and deadline with your real-estate representative and lawyer.
Example estimate: a planning exercise only
The following example is intentionally labelled ESTIMATE. It is not a quote, promise or representation of the costs for any particular buyer or property.
Illustrative purchase price: $400,000 in Ontario
| Possible item | Illustrative estimate |
|---|---|
| Ontario land transfer tax before any eligible refund | $4,475 |
| Lawyer fee, applicable taxes and routine disbursements | $2,000-$3,500 |
| Title insurance and registration-related items | $500-$900 |
| Home inspection | $500-$900 |
| Lender-required appraisal, if applicable | $400-$700 |
| Adjustments for taxes or other prepaid items | Variable |
| Mortgage default insurance, if applicable | Variable; lender to confirm |
| Illustrative total before adjustments and any insurance premium | about $7,875-$10,475 |
A qualifying first-time buyer may be eligible for an Ontario land transfer tax refund, which could reduce the LTT amount. The example does not include the down payment, deposit, moving costs, insurance, utility connections or renovations. Actual costs vary with the purchase price, property and professionals involved. Confirm every figure before relying on it.
A closing-cost checklist
- Ask your lender or mortgage professional for a written list of financing costs.
- Ask your lawyer for an estimated statement of adjustments and closing-cost breakdown.
- Confirm whether you qualify for the Ontario first-time homebuyer refund.
- Set aside funds for the deposit and understand how it will be credited on closing.
- Decide what inspections or specialized reports make sense for the property.
- Confirm whether a lender-required appraisal cost applies.
- Review title insurance, registration and disbursement items with your lawyer.
- Keep a cushion for tax, fuel or other adjustments that are not known until closer to closing.
- Do not treat this guide as legal, tax, mortgage or financial advice.
Planning your next move
A clear budget helps you compare homes with fewer surprises. Team Steven Levac can help you understand the local market context, prepare a purchase plan and connect you with the professionals who can confirm transaction-specific costs.
Thinking about selling before you buy? Contact Team Steven Levac for a conversation about your next step or request an Opinion of Value for your current home. An Opinion of Value is a market-based estimate for planning purposes, not a formal appraisal.
Team Steven Levac
Royal LePage Performance Realty
151 Main St. E., Unit 116, Hawkesbury, Ontario
613-677-8284 | Alexandra Quester: 613-678-0706
teamstevenlevac.com | stevenlevac.com
*Figures and program rules can change. This article is general information only and is not legal, tax, mortgage, financial or other professional advice. Confirm the details for your transaction with qualified professionals.*