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Closing costs in Newfoundland and Labrador

See how much closing costs are when you buy a home in this province.

The average closing cost in Newfoundland and Labrador is roughly $4,021 after taxes or approximately 1-2% of the final home sale price.

Closing cost stats in Newfoundland and Labrador

  • Average home sale price. $268,071
  • Average total closing cost. $4,021
  • Expected closing cost range. $2,680-$5,362
  • 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 Newfoundland and Labrador

1 - 3 of 3
Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
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).
BMO Mortgages
6.49%
5 Year Fixed Rate
Varies
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
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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Compare up to 4 providers

How much does tax affect the closing cost?

Buyers in Newfoundland and Labrador are fortunate to pay a nominal amount in taxes on the closing cost through a Land Transfer Tax (LTT).

In Newfoundland and Labrador, you get charged the LTT on the property value and mortgage amount. For properties and mortgages under $500.00 you get taxed a flat fee of $100. For properties and mortgages above $500.00 you get taxed a flat fee of $100 plus 0.4% on the amount of your mortgage.

For example, if you purchased a property for $280,000 in Newfoundland and Labrador and have a mortgage of $200,000, you would be charged the flat fee of $100 plus 0.4% on the $200,000 mortgage, which amounts to $800. When added together, you are paying a cumulative Land Transfer Tax of $900.

Please note that this does not include the 15% Harmonized Sales Tax (HST) that is enforced on the sale of new properties in Newfoundland and Labrador.

*Harmonized Sales Tax (HST)

Newfoundland and Labrador has a Harmonized Sales Tax (HST), which is essentially a combination of the GST (5%) and 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 first-time homebuyers in Newfoundland and Labrador. If you purchase a home with a sale price of $350,000 or less, you are eligible to receive a 36% rebate on the GST portion of the HST up to $6,300. There is no rebate for the PST portion of HST.

For example, if you bought a brand new property in Nova Scotia for $280,000, you would need to pay $42,000 HST. This cost can be broken down into $28,000 for the PST portion (10%) and $14,000 for the GST portion (5%).

On the GST portion of $14,000, you would be eligible to receive a 36% rebate. This is $5,040. You would get the entire amount, given that it falls below the maximum GST rebate of $6,300.

How do closing costs in Newfoundland and Labrador compare with the rest of Canada?

The closing costs for buying a home in Newfoundland and Labrador 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, Newfoundland and Labrador 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 Newfoundland and Labrador. Not factoring in the HST, it is safe to budget 1-2% of the final sale price for closing costs as some 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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