What Are Closing Costs When Buying a Home?

When you're buying a home, it's not just the down payment you need to plan for. There are a handful of other costs that show up at closing — and a few more that come with the move. While actual numbers will vary, here’s how I usually recommend budgeting.

Typical Closing Costs

Legal Fees
You’ll need a real estate lawyer to handle the legal side of the purchase. I usually budget about $2,000, which should cover most standard transactions.

Title Insurance
This protects you and the lender from potential issues with the property title. It’s usually required and typically costs a few hundred dollars, depending on the purchase price and lender.

Deed Transfer Tax (Land Transfer Tax)
In most of Nova Scotia, this is 1.5% of the purchase price. It’s a one-time cost paid at closing.
For example, if you’re buying a $400,000 home in Halifax, the Deed Transfer Tax would be $6,000.

Property Tax Adjustments
If the seller has already paid the property taxes for the year or half-year, you’ll need to reimburse them your portion.
Let’s say the seller paid property taxes for July through December, and your closing date is in September. You would owe them for October through December. The exact amount depends on the property and timing of the closing.

Other Costs to Consider

These aren’t technically “closing costs,” but they’re important to budget for:

• Home Inspection
  Not required, but always a good idea. Expect to pay $500–$700, depending on the property.

• Moving Costs
  Whether it’s a rental truck or professional movers, plan to spend a few hundred dollars.

• Appraisal (Sometimes Required)
  Some lenders may request an appraisal. If so, it usually costs $350–$500. Your broker will let you know if it’s needed.

• Home Insurance
  You’ll need to have coverage in place before closing. The first premium is typically paid upfront and depends on the property and coverage level.

Planning ahead for these costs can help keep your home purchase stress-free. If you want help reviewing your numbers or checking how much you can qualify for, I'm happy to walk you through it.

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Frequently Asked Questions (FAQ)

Do I need to pay the Deed Transfer Tax everywhere in Nova Scotia?
Most municipalities in Nova Scotia charge a Deed Transfer Tax, usually at 1.5%, but there are a few areas with different rates. Your lawyer will confirm the amount based on location.

Can I roll any of these costs into my mortgage?
Typically, closing costs must be paid out-of-pocket and can't be added to your mortgage.

Is title insurance really necessary?
Yes. Most lenders require it, and it protects you from things like title defects, fraud, or unpaid liens that might not show up during a title search.