What Are Closing Costs?

Wooden House with key
What Are Closing Costs?

What Do Closing Costs Include?

Buying a home involves more than the purchase price — there are additional costs you need to plan for before closing day. These expenses ensure the legal transfer of ownership, protect your investment, and finalize your mortgage. Most buyers in Nova Scotia should expect closing costs to range between 1.5% and 3% of the purchase price, depending on the property and the lender.

Below is a clear breakdown of the most common fees involved in a typical home purchase.

1. Lawyer and Legal Fees

Your real estate lawyer handles the legal transfer of the property and ensures a smooth closing. Typical legal fees range from $1,200–$2,000, depending on the complexity of the transaction.

Your lawyer will also take care of:

  • Deed Transfer Tax
    Most municipalities charge this tax when the title transfers. Rates vary, but Halifax is 1.5% of the purchase price.
  • Title Insurance
    Protects against title defects, zoning issues, or prior ownership problems. Typically $150–$350.
  • Adjustments on Closing
    Your lawyer will calculate any amounts the seller has pre-paid (or still owes), including:
    • Property taxes
    • Oil in the tank
    • Propane
    • Condo fees
    • Any municipal fees

2. Inspection Fees

A home inspection typically ranges from $400–$700 depending on size, location, and property type. This helps identify issues and protects your investment.

Additional charges could include: WETT Inspection (Wood Stoves), Radon Testing, Well/Septic Inspection

Your lender may charge certain costs when setting up your mortgage.

CMHC / Mortgage Default Insurance Premium – If you have less than 20% down, the premium is added to your mortgage; the PST on the premium is paid at closing.

Appraisal Fee – Some lenders require an appraisal to confirm the property’s value.

Application or Processing Fee – Depends on the lender; not always applicable.

Interest Adjustment Date (IAD) – A partial interest payment depending on your closing date.

4. Utility Setup & Moving Costs

While not legal closing costs, It’s still important to budget for:

  • Power connection
  • Oil fill or propane
  • Water testing (if applicable)
  • Movers / rental truck
  • Changing locks
  • Internet setup fees
Questions About Closing Costs? Ask Peggy