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Closing costs in Halifax

Here's how much you might have to pay in closing costs when you buy a home in this East Coast city.

The average closing cost in Halifax is roughly $6,000 after taxes or approximately 1-2.5% of the final home sale price.

Closing cost stats in Halifax

  • Average home sale price. $310,000-$330,000
  • Average total closing cost. $6,000*
  • Expected closing cost range. $3,100-$8,250*
  • Percentage of closing cost to home sale price. 1-2.5%

Remember, these averages are based on sample data. Your closing costs may vary based on your lender, the size of your loan and whether you’re paying in cash.

Compare mortgage lenders and rates available in Nova Scotia

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Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
nesto Mortgages
5 Year Fixed Rate
All of Canada
Get 1% cashback on your mortgage value (up to a total cashback of $9,250).
BMO Mortgages
5 Year Fixed Rate
All of Canada
New home buyers, save $1,000 in legal fees with a new BMO mortgage. Or switch your mortgage to BMO and get up to $4,200 cash back. Valid until February 17, 2023.
Homewise Mortgages
Not available in Quebec
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.

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How much does tax affect the closing cost?

Buyers in Halifax are fortunate to pay a nominal amount in taxes on the closing cost through a Land Transfer Tax (LTT), also called a Deed Transfer Tax. In Nova Scotia, there is no fixed transfer tax rate as it differs between each municipality but it ranges between 0.5% and 1.5%. In Halifax, the Deed Transfer Tax stands at 1.5%.

For example, if you purchase a property for $300,000, the amount you’ll pay in this Deed Transfer Tax is $4,500. Please note that this does not include the 15% Harmonized Sales Tax (HST) that is enforced on the sale of new properties in Halifax.

*Harmonized Sales Tax (HST)

As part of the province of Nova Scotia, Halifax has a Harmonized Sales Tax (HST), which is essentially a combination of the GST (5%) and the PST (10%). The HST is 15% and is only payable on the sale of brand new properties or properties that have been substantially renovated.

Is there an HST rebate?

Yes, there is a rebate that is available to homebuyers in Halifax. If you purchase a home with a sale price of $350,000 or less, you are eligible to receive a 75% rebate on the PST portion of the HST and a 36% rebate on the GST portion of the HST.

For example, if you bought a brand new property in Halifax for $300,000, you would need to pay $45,000 for the HST. This cost can be broken down into $30,000 for the PST portion of the HST (10%) and $15,000 for the GST portion of the HST (5%).

On the PST portion of the HST ($30,000), you would be eligible to receive a rebate of $22,500 (75% of PST). You would also be eligible to receive a rebate of $5,400 on the GST portion of the HST (36%). Combine the two rebates and you should be able to earn back a rebate of $27,900 on the $300,000 property.

How do closing costs in Halifax compare with the rest of Canada?

The closing costs for buying a home in Halifax are among the lowest in Canada because of its relatively low average housing prices. Unlike a few other provinces in Canada that only charge GST on the sale of new properties, Nova Scotia charges HST, a higher tax rate, that can significantly drive up the closing costs on properties in Halifax.

Bottom line

Closing costs are inevitable when you’re buying a property. The exact amount will vary depending on what the final sale price is on your property in Halifax. Not factoring in the HST, it is safe to budget 1-2.5% of the final sale price for closing costs as most of it will be going to the LTT. In cases where you buy a brand new property, you will have to pay HST and this can raise your closing costs as high as 16-18% (not taking into account the rebate).

Want to learn more about mortgages? Head to our guide here.

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