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Closing costs in New Brunswick

See how much you might have to pay in closing costs when you buy in New Brunswick.

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By

James Wan

Updated

Fact checked

The average closing cost in New Brunswick is roughly $3,693 after taxes or approximately 1-2% of the final home sale price.

Closing cost stats in New Brunswick

  • Average home sale price. $246,308
  • Average total closing cost. $3,693*
  • Expected closing cost range. $2,460-$4,926*
  • Percentage of closing cost to home sale price. 1-2%

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 New Brunswick

1 - 3 of 3
Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
nesto Mortgages
CASHBACK
nesto Mortgages
4.49%
5 Year Fixed Rate
680
All of Canada
Get 1% cashback on your mortgage value (up to a total cashback of $9,250).
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More Info
BMO Mortgages
BMO Mortgages
6.49%
5 Year Fixed Rate
Varies
All of Canada
Switch your mortgage to BMO and get up to $4,200 CashBack. Valid until June 30, 2023.
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Homewise Mortgages
Homewise Mortgages
Varies
Varies
600
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 New Brunswick are fortunate to pay a nominal amount in taxes on the closing cost through a Land Transfer Tax (LTT). In New Brunswick, this LTT amounts to either 1% of the purchase price or 1% of the assessed value, whichever is higher. For example, if the assessed value on the house you’re buying is $260,000 but you end up paying $230,000, you would need to pay the 1% tax on the assessed value, which works out to $2,600. Please note that this does not include the 15% Harmonized Sales Tax (HST) that is enforced on the sale of new properties in New Brunswick.

*Harmonized Sales Tax (HST)

New Brunswick 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.

Yes, there is a rebate that is available to homebuyers in New Brunswick. 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 for $350,000, you would need to pay $52,500 for the HST. This cost can be broken down into $35,000 for the PST portion of the HST (10%) and $17,500 for the GST portion of the HST (5%).

On the PST portion of the HST ($35,000), you would be eligible to receive a rebate of $26,250 (75% of PST). You would also be eligible to receive a rebate of $6,300 on the GST portion of the HST. Combine the 2 rebates, and you should be able to earn back a rebate of $32,550 on your $350,000 property.

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

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

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 New Brunswick. Not factoring in the HST, it is safe to budget 1-2% 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 15-17% (not taking into account the rebate).

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

  1. The Canadian Real Estate Association: New Brunswick Real Estate Association June 2021

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