Closing costs and transaction law

Every dollar between the price and the wire

What does it cost to close a $1,000,000 commercial purchase in Canada?

Between $5,870 in Yukon and $25,076 in British Columbia — a $19,206 spread on an identical purchase, driven almost entirely by statutory transfer tax rather than professional fees.

Commercial closing and escrow data. Escrowlor computes land transfer tax from the bracket tables in force, adds the registration tariff, the sale tax treatment and your own legal and title estimates, and prints a closing cost statement with the statute and effective date beside every line.

Jurisdictions

13

Municipal levies

5

Cheapest to close

Yukon

Most expensive

British Columbia

01Closing cost calculator

Closing cost calculator

On a $1,000,000 purchase in Ontario, cash to close is $23,854 — 2.39% of price — and the largest single line is land transfer tax (ontario) at $16,475. Statute and tariff account for $16,704 of it, which no negotiation can reduce.

Tax and residency flags

Transfer / registration tax

$16,475

Registration and search

$229

Cash to close

$23,854

% of price

2.39%

Rates effective as of 2024-01-01

Closing cost statement

$1,000,000 commercial purchase — Ontario

Rate tables effective as of 2024-01-01 · prepared by Escrowlor · figures are the reader's own inputs applied to published statute

Every line of cash required to close, with the statutory authority for each tax figure
LineAmountAuthority
Land transfer tax (Ontario)$16,475Land Transfer Tax Act, R.S.O. 1990, c. L.6, s. 2(1) — general rate on the value of the considerationeffective 2017-01-01source
Registration and title search fees$229Land Registration Reform Act — Ontario Reg. 19/99 (Electronic Registration), Tariff of fees, registration of transfer and chargeeffective 2024-01-01source
HST on the purchase (13%)Self-assessed and remitted directly by the registrant purchaser, so $130,000 is not funded at closing.$0Excise Tax Act (Canada), s. 165; s. 221(2) (self-assessment by a registrant purchaser)effective 2016-07-01source
Title insurance (standard commercial policy)Premium band from published commercial title insurer rate cards; bind the actual premium with your insurer.$1,150reader input
Legal fees and disbursementsA straightforward commercial closing in Ontario is typically quoted between $2,500 and $9,500.$6,000reader input
Total cash to close$23,8542.39% of price
All-in acquisition basis$1,023,854

Tax and tariff lines are computed from the bracket tables published in the statutes cited above and are exact for a closing dated on or after each effective date. Legal fees, title insurance and adjustments are the reader's own estimates. Confirm every figure with the lawyer closing the transaction before you wire funds.

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Save the deal and Dealor re-runs it every month against current rates and your own dates — so you hear about a broken DSCR or a lapsing renewal before your lender does.

Dealor — soon

02Jurisdictions

Closing cost by province and territory

The full ranking, including the cities that legislate a second levy of their own, is in the jurisdiction comparator.

How Escrowlor computes these numbers