When buying a home in Manitoba, your budget shouldn’t just include the purchase price—you also need to factor in closing costs. These are the extra expenses due on closing day, and I typically tell my clients to budget from 2-3% of the homes' purchase price for closing costs. Let’s break down the key costs you can expect.
1. Land Transfer Tax
Manitoba’s Land Transfer Tax (LTT) is one of the biggest closing costs. It’s based on a sliding scale and increases as the price of the home increases. There are few situations where a property is exempt from Land Transfer Tax, but they are rare.
The LTT is paid for by the buyer, and it is essentially an administration cost (and a hefty one at that) to finance the registration of title at the land titles office.
You can estimate the Manitoba Land Transfer Tax here.
2. Legal Fees and Disbursements
You’ll need a real estate lawyer to handle paperwork, register your mortgage, and ensure a smooth closing. Expect to pay between $1,000 and $2,500, depending on the complexity of the transaction.
3. Home Inspection (Optional)
A home inspection isn’t required, but it’s a smart investment, for both newer and older properties. A typical inspection in Manitoba costs $400 to $700, depending on the home’s size and condition.
4. Property Tax Adjustments
If the seller has prepaid property taxes, you’ll need to reimburse them for the portion covering the time you own the home. In Manitoba, property taxes are due by June 30th of each year, but they cover the time from January 1 to December 31st of the year. If the seller of your home has prepaid the property taxes, and you take possession of the home on August 1, you'll owe a prorated amount of those taxes (the adjustment) to the seller - the amount from August 1st to December 31st.
5. Title Insurance
Title insurance protects you from ownership disputes or defects concerning the property’s title. While not mandatory, many lenders require it. Expect to pay around $250 to $500.
6. Mortgage Default Insurance (If Applicable)
If your down payment is less than 20%, you’ll need mortgage default insurance (CMHC, Sagen, or Canada Guaranty). This cost is added to your mortgage but is important to consider when budgeting.
7. Other Potential Costs
- Appraisal Fee – Some lenders require a home appraisal, costing $300 to $500.
- Moving Costs – Hiring movers or renting a truck can range from $500 to $2,000+.
- Utility Hookups & Adjustments – Setting up hydro, water, and internet can come with connection fees.