One of the last major hurdles you will need to overcome as a home buyer is that of closing costs. These need to be paid upfront and generally include the down payment, your mortgage insurance premium, land transfer tax, legal fees, title insurance and other miscellaneous costs.
To help first-time homebuyers better understand what costs they should expect to pay on closing day, we compiled estimates based on benchmark home prices across parts of the east coast and some of the major cities in those provinces. Calculations assume the minimum down payment is made (and includes the initial deposit amount), that all land transfer tax (LTT) rebates for first-time home buyers have been applied, and that mortgage default insurance costs have been rolled into the mortgage, and hence do not need to be paid on closing day.
Closing Costs in Nova Scotia Will Set Buyers Back the Most
Of the four provinces, home buyers can expect to pay the largest amount on closing day in Nova Scotia. When buying a home at the average price of $384,600 in the province, the down payment would cost $19,230, while the total closing cost would be $39,614. Prince Edward Island is the second most expensive province, with a home price of $339,000 and a closing cost of $33,222.
Enjoying our content? Subscribe to our free weekly newsletter to get real estate market insights, news, and reports straight to your inbox.
The most expensive city that we covered was Halifax. Halifax has the highest benchmark home price at an average home of $507,900, substantially more expensive than any other city included in the report. The minimum down payment would be $25,790 with a final closing cost total of $52,693, just over $13,000 higher than Nova Scotia and almost $21,000 more than the next highest city on the list, Greater Moncton, where the closing cost on a home with the April 2023 average price is $31,742.
Newfoundland Provides the Greatest Affordability
Newfoundland and Labrador is the least expensive province. With the benchmark price of a home at $276,600, a minimum down payment of $13,830 would be required, leading to a final closing cost total of just $25,545. Buyers looking for greater affordability would do well to look here or at New Brunswick, where a home costs $279,000 and the closing costs are $27,342, less than $2,000 higher than Newfoundland.
Saint John, while having the same home price as Newfoundland according to the Candian Real Estate Association, has a slightly higher closing cost due to the higher amount of Land Transfer Tax required, giving it a total closing cost of $27,107, but is also the most affordable city that we covered.
If you’re looking to the East Coast to move for greater affordability, give us a call! We’re here to help you find your dream home!
