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Closing costs in Manitoba

See how much you might have to pay in closing costs when you buy a home in this province.

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The average closing cost in Manitoba is roughly $10,410. A good rule of thumb is to calculate 2-4% of the final home sale price.

Closing cost stats in Manitoba

  • Average home sale price as of June 2021. $346,943
  • Average total closing cost. $10,410*
  • Expected closing cost range. $6,940-$13,880*
  • Percentage of closing cost to home sale price. 2-4%

*Excludes the goods and services tax (GST).
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.

What are the closing costs when you buy a home in Manitoba?

Below is a breakdown of closing costs you may encounter.

Type of costEstimated amountMandatory expense?Description
Adjustment costsVaries, but set aside around $500Mandatory if applicable
  • The buyer must reimburse the seller for any property taxes or utilities the seller paid after the buyer takes possession.
  • For example, if the seller pays property taxes for the next 12 months, and the buyer takes possession 3 months later, the buyer would then reimburse the seller for 9 months’ worth of property taxes.
Legal fees$1,000-$1,500 (varies depending on the complexity of the purchase)Mandatory
  • Lawyers handle administrative details and make sure the title is transferred properly.
  • Make sure you find out exactly what services your lawyer is performing and how the legal fees break down.
DisbursementsStarting at $100Mandatory
  • These are reimbursements paid to your lawyer for miscellaneous fees like mailing costs, bank charges, photocopies and land transfer fees to register the property in your name.
Home inspection$350-$750Not mandatory (but strongly recommended)
  • Have the property professionally inspected before you buy to ensure you’re aware of its true condition and can afford any necessary maintenance or repairs.
Home insurance$800-$1,200 (annual)Likely mandatory
  • This insurance covers loss or damage to your home.
  • Mortgage lenders will require you to have it.
  • Your premium depends on several factors, such as the type of home, the materials it was made out of and the neighbourhood crime rate.
Mortgage default insuranceVariesMandatory if down payment is less than 20%
  • This covers the cost of the home should you default on payments.
  • Your premium is based on various factors such as the size of the down payment and the mortgage’s amortization period.
  • The premium can be paid upfront or throughout the amortization period.
Land survey and Building Location Certificate (BLC)VariesDepends
  • The survey is the inspecting and measuring of the property, while the certificate is the official document that illustrates the property’s boundaries, buildings and structures.
  • The cost varies depending on how complex the inspection is.
  • Sometimes the seller of the home can provide this to you at no cost as part of the selling process.
  • Your mortgage lender may require this.
Title insuranceAround $300Not mandatory
  • This covers the lender against defects in the title, which could include overlooked back taxes, conflicting wills and existing liens from other mortgages or home equity lines of credit.
  • Title insurance is generally not mandatory, but your lender may require this.
  • This insurance is legally complex, so be sure to research and seek advice on exactly what it can cover.
Property appraisal$350-$500Depends
  • This is a professional opinion of the market value of your home.
  • Your mortgage lender may require an appraisal to ensure the mortgage is reasonable given the property’s value.
Estoppel/status certificateAround $100Likely mandatory if you’re buying a previously owned condo
  • This is a signed statement from the condo corporation that details condo contributions or outstanding payments. They may charge a fee for providing this to you.
  • Sometimes, the seller of the condo will provide this to you as part of the selling process.
Mortgage prepayment penaltyVaries based on the terms of your mortgageDepends
  • If you have to break an existing mortgage, you may have to pay a penalty fee that could be thousands of dollars.
Moving costsVariesNot mandatory
  • This includes the cost of any professional moving services you hire, truck rental fees, moving equipment and any related incidental costs.
Switching/setting up utilitiesVariesDepends
  • You may have to pay fees for switching and setting up your utilities. This could include separate charges for gas, electricity, water, Internet, cable, phone and security systems.
Goods and services tax (GST)5% of the purchase priceMandatory if you’re buying a newly built home
Land transfer tax (LTT)$1,650 + 2% on the balance of the house’s value above $200,000Mandatory
  • This is the tax you will have to pay the provincial government once a transfer of land is registered.

Is there a land transfer tax or property transfer tax when buying a new home in Manitoba?

Buyers in Manitoba pay a nominal amount in taxes as part of their closing costs. They will need to pay the land transfer tax (LTT), which is calculated based on the property’s purchase price.

Purchase priceMarginal tax rate
Up to $30,0000%
Between $30,00 and $90,000 (a difference of $60,000)0.5%
Between $90,000 and $150,000 (a difference of $60,000)1.0%
Between $150,001 and $200,000 (a difference of $50,000)1.5%
Above $200,0002.0%

So, for a property valued at $350,000, LTT would be calculated as follows:

  • 0% of the first $30,000 = $0
  • 0.5% of the next $60,000 = $300
  • 1.0% of the next $60,000 = $600
  • 1.5% of the next $50,000 = $750
  • 2.0% of the remaining $150,000 = $3,000
  • Total: $4,650

Essentially, for homes with a purchase price above $200,000, the land transfer tax will be always be $1,650 + 2% of the purchase price above $200,000.

Do I have to pay GST when buying a home in Manitoba?

In Manitoba, GST is a 5% federal tax that is only payable on the sale of new or substantially renovated properties. This can be on a presale high-rise condominium or on a newly built home. Sometimes GST is already included in the sale price of the home, so be sure to check with the builder.

A home is considered substantially renovated if at least 90% of the interior was replaced or removed.

Is there a GST rebate?

Yes. If you purchase a home with a sale price of $350,000 or less, you are eligible for a 36% rebate on the 5% GST, for a maximum rebate of $6,300. This rebate is reduced on properties ranging from $350,000-$450,000; anything above $450,000 is not eligible for a GST rebate.

What about realtor fees?

When you buy a home, it is standard practice for the seller of the home to pay your real estate agent’s commission.

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

The closing costs for buying a home in Manitoba are roughly in the middle compared to the rest of Canada. The relatively affordable housing prices in Manitoba, coupled with a reasonable land transfer tax rate, help keep the closing costs down.

Compare mortgage lenders and rates in Manitoba

1 - 4 of 4
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
Switch your mortgage to BMO and get up to $4,200 CashBack. Valid until June 30, 2023.
Meridian Mortgages
5 Year Fixed Closed Rate
Meridian is a credit union that provides Ontario residents featured rates and the option to defer one payment every 12 months without penalty.
Homewise Mortgages
Not available in Quebec
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.

Bottom line

Closing costs are inevitable when you’re buying a home in Manitoba. The exact amount will depend on your personal situation. Try to budget at least 2-4% of the final home sale price for your closing costs, but if it’s a newly built home, also keep in mind the 5% GST. Talk to your lawyer or real estate agent to learn more about your closing costs.

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

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