It's a good idea to set aside 1.5% to 4% of the purchase price to cover these additional expenses. To give you an idea of what to expect, here is a list of common closing costs in Nova Scotia.
Deed Transfer Tax
This is a one-time tax paid by the buyer to the municipality upon the transfer of property. In the Halifax Regional Municipality, the rate is 1.5%. In other areas of Nova Scotia, it typically ranges from 1% to 1.5%. Note: If you are not a resident of Nova Scotia, a provincial 10% Non-Resident Deed Transfer Tax may also apply.
Home Inspection
A professional home inspection is highly recommended to identify any potential issues with the property before you buy. A standard inspection usually costs between $450 and $650 plus HST. Specialized tests for radon or sewer lines can cost an additional $150 to $350 each.
Legal Fees and Disbursements
You will need a lawyer to handle the legal aspects of your home purchase, such as searching the title and registering the deed. Legal fees typically range from $800 to $1,200, while disbursements (out-of-pocket expenses like registration fees and title insurance) can add another $400 to $600 plus HST.
Appraisal Fee
Your lender may require an appraisal of the property to confirm its market value. This fee is usually between $350 and $550 plus HST.
Property Tax and Utility Adjustments
You may need to reimburse the seller for any property taxes or utility bills (like a full tank of oil or propane) that they have prepaid beyond the closing date. These costs vary based on the time of year and the specific property.
Title Insurance
Most lenders require title insurance to protect against losses related to the property’s title. This is a one-time premium, typically costing between $200 and $350.
HST
In Nova Scotia, the HST rate is 14% (as of April 2025). While HST does not apply to the purchase price of most resale homes, it does apply to most services related to the purchase, including legal fees, inspections, and appraisals.
Mortgage Default Insurance HST
If your down payment is less than 20%, you will likely have mortgage default insurance (CMHC). While the premium is usually added to your mortgage, the 14% HST on that premium must be paid in cash on your closing day.
I can help you manage your closing costs! These costs will vary depending on where you are purchasing your home. I will explain each of these costs to you in greater detail to help you manage your financial obligations.