How Much Does a First-Time Buyer Really Need Beyond the Down Payment?
The Financial Consumer Agency of Canada tells buyers to be prepared to spend between 1.5 and 4 percent of the purchase price on closing costs. Where you land is decided mostly by your province. On a $450,000 home an Alberta buyer needs roughly $7,000 beyond the down payment. A Toronto buyer who cannot claim the first-time buyer rebates needs closer to $17,000, because Toronto charges two land transfer taxes. Moving and setup sit on top of both. Almost every first-time buyer knows the down payment number by heart. Very few have ever been shown the second list.
The second list nobody shows you
Here is what actually turns up between your accepted offer and your possession date. None of it is optional.
| Cost | What it is |
|---|---|
| Legal fees | Your lawyer handles the title transfer, reviews the mortgage, and holds your funds in trust. Typically $1,000 to $2,000. |
| Title insurance | Protects you and the lender against title defects and fraud. Typically $300 to $500. |
| Home inspection | Paid before you are committed, and usually before you know whether the deal will go ahead. Typically $300 to $600. |
| Appraisal | Some lenders require one to confirm the value. Typically $300 to $500. |
| Land transfer tax | Only in provinces that charge it. Where it applies it is usually the largest line on this list. |
| Adjustments | Reimbursing the seller for property taxes and utilities they have already paid past your possession date. |
| Moving | Movers, truck, utility hookups, and the small things you have to buy the first week. |
| First home insurance premium | Your lender will not release the mortgage funds without proof of coverage in place. |
Two of these catch people out more than the rest. The adjustments are invisible until the lawyer sends the statement, because they depend on your possession date and on what the seller already prepaid. And the home insurance premium has to be paid before funding, not after, which surprises buyers who assumed it would start with the first monthly payment.
Where you buy changes the total a lot
Land transfer tax is the single biggest reason two buyers at the same price end up thousands apart. Some provinces charge it and some charge none at all. Alberta and Saskatchewan charge no transfer tax, only land titles registration fees. Ontario charges a provincial land transfer tax, and a Toronto buyer pays a municipal land transfer tax on top of that. The province by province rates are here: closing costs by province.
If you are buying in a province with transfer tax, budget at the top of the FCAC range. If you are buying in Alberta or Saskatchewan, the bottom of it is realistic. And if you are buying in Ontario, check the rebates before you assume the worst: a first-time buyer can claim a refund of up to $4,000 against the Ontario land transfer tax and a rebate of up to $4,475 against the Toronto one. On a $450,000 Toronto purchase, claiming both cuts about $10,950 of transfer tax down to roughly $2,475.
What about mortgage default insurance?
If your down payment is under 20 percent, mortgage default insurance applies. The good news for cash planning is that the premium is normally added to your mortgage rather than paid on closing day, so it does not come out of the pile of cash you have been saving. The down payment rules themselves, and why a smaller down payment is not always the wrong answer, are covered here: what is the minimum down payment in Canada.
A worked example on a $450,000 home
Minimum down payment on $450,000 is $22,500, which is 5 percent. What sits on top of it depends almost entirely on where you buy:
| Item | Alberta | Toronto, first-time buyer | Toronto, no rebates |
|---|---|---|---|
| Land transfer tax | None | $2,475 | $10,950 |
| Registration fees | $980 | Smaller, value based | Smaller, value based |
| Legal fees | $1,500 | $1,500 | $1,500 |
| Title insurance and inspection | $900 | $900 | $900 |
| Appraisal | $400 | $400 | $400 |
| Adjustments and first year insurance | $2,000 to $3,500 | $2,000 to $3,500 | $2,000 to $3,500 |
| Beyond the down payment | About $7,000 | About $8,300 | About $17,000 |
| Working total with the down payment | About $29,500 | About $30,800 | About $39,500 |
Alberta registration fees calculated from the Alberta Land Titles and Surveys Common Document Fee Schedule. Ontario and Toronto land transfer tax calculated from the published bracket rates, less the Ontario first-time buyer refund of up to $4,000 and the Toronto rebate of up to $4,475. All sources verified 12 August 2026. Moving and setup are not in this table and sit on top.
If you have read closing costs by province and are wondering why Alberta looks like about 1 percent there and about 1.5 percent here, it is the last two rows. That page counts the closing bill your lawyer handles. This one counts every dollar you need in the bank, including the adjustments and the first year of insurance.
That is the number worth planning against, rather than the down payment on its own. It is also why so many first-time buyers reach possession day with an empty savings account and no cushion left for the first broken furnace.
The part that gives some of it back
There is one line that runs the other way. The professionals on your purchase, your realtor and your mortgage broker, each spend money to find every new client. That spending is already in their business, whether they find you through advertising or through a referral. HiveRewards is the channel they pay out of that same budget instead, and most of that payment goes to you as cashback after closing. Nothing about their fee for the work changes.
| Source of cashback | Approximate amount |
|---|---|
| Realtor-side cashback | $1,620 |
| Mortgage-side cashback | $1,026 |
| Combined total | $2,646 |
On the $450,000 example, $2,646 covers a real share of that second list. It arrives shortly after closing rather than before it, so it does not reduce the cash you need on the day, but it does rebuild the cushion you just spent. Amounts are estimates and depend on the home price, the down payment, and the participating professionals. There is a timing rule that matters: when you have to start with a cashback platform. HiveRewards operates across Canada, excluding Quebec.
The short version
- Beyond the down payment, plan about $7,000 in Alberta or about $17,000 in Toronto without rebates, on a $450,000 home.
- The list: legal fees, title insurance, inspection, appraisal, transfer tax where it applies, adjustments, moving, and the first home insurance premium.
- Adjustments and the insurance premium are the two that surprise people most.
- Your province decides whether you land at the top or bottom of the FCAC 1.5 to 4 percent range, and Ontario first-time buyer rebates can move you a long way down it.
- Cashback of about $2,646 on a $450,000 purchase rebuilds part of the cushion after closing.