We want you to have the best selling or buying experience possible. We’ve put together some resources for your convenience.

Common Closing Costs You Should Know About

Are you ready to buy your new home? You are probably already aware that there are costs, aka Closing Costs, associated with your home purchase.

Closing costs are extra fees, taxes, and more – that are required at the time of closing to ensure the property transfers ownership. A general rule of thumb is to set aside 2-2.5% of the total purchase price of the home to cover the closing costs.

What are the costs? Let’s take a look.

Land Transfer Tax

Introduced by the Manitoba provincial government in 1987, the Land Transfer Tax is due upon closing and must be paid on top of the registration fee based on the market value of the property on the date of registration when buying a property or land.
There is no tax paid on the first $30,000 and the rest is applied on a sliding scale. The Land Title Office collects and remits the tax when you visit the office to register the transfer of property. The requirement is derived from The Tax Administration and Miscellaneous Taxes Act. Try the Manitoba Land Tax Calculator.

Title Insurance

Title insurance is a class of insurance that protects purchasers from losses stemming from defects in the title to their new property. Title insurance also protects purchasers from losses stemming from other specific matters that may affect their title or the right to use and enjoy their property. Protection is afforded against defects that exist at the time of purchase, but are unknown to the purchaser, as well as specific future risks. Title insurance will generally cost between $250-$400 depending on which provider you use.

Lawyer Fees

This one is a little tougher. Lawyer fees vary depending on which lawyer you use, the amount of work required, what documents are required, etc. The majority of real estate transactions are fairly routine once it’s time for the lawyers as the majority of the work is done by the realtors. A good rule of thumb is to budget around $800-1200 for the lawyer.

Property Tax

This cost will vary depending on what time of year you are taking possession, and how the previous owners were paying their taxes. Buyers will have to reimburse the seller for the amount of taxes already paid.

If they are part of the Tax Installment Payment Program (TIPP), you will only be reimbursing them for the portion of the taxes they paid for that month after the property is transferred. However, if the seller has paid their taxes in one lump sum, the buyer will need to reimburse them for the portion of the year after the property transferred.


In most cases, the buyer does not pay any commission to their real estate agent. The price of the commission has already been built into the purchase price and is paid by the seller. There are rare situations where the seller is not willing to pay the commission. When this happens, the buyer and agent will negotiate a fee agreement for an amount or percentage.

Mortgage Default Insurance

Mortgage Default Insurance is not technically a closing cost but buyers should know about it. Mortgage Default Insurance is associated with mortgages where the buyer has put down less than 20%. This insurance is tacked on to your mortgage product, and technically is not a “Closing Cost” but it will affect your mortgage amount.

If you have any questions about the home buying or selling process feel free to contact us today.