Most buyers plan carefully for the down payment and then get caught by the other cheque they need at closing. In Nova Scotia that second amount is real money, mostly because of deed transfer tax. This guide lists what to expect so there are no surprises on closing day.
Where a cost varies by provider or property, I say so rather than quote a number that may not apply to you. Your lawyer and lender will give you exact figures for your purchase.
The big one: municipal deed transfer tax
Every municipality charges a deed transfer tax on the sale price, between 0.5% and 1.5% depending on where the property is. Halifax Regional Municipality charges 1.5%. On a $450,000 home in HRM that is $6,750, due at closing, in cash. Full details are in our deed transfer tax guide.
If you live outside Nova Scotia and are not moving here within six months, a separate provincial non-resident tax of 10% also applies. That is covered in the same guide.
Legal fees and disbursements
A Nova Scotia lawyer handles the title search, the mortgage registration, the deed, and the transfer of funds. You pay a fee for that work plus disbursements, which are the out-of-pocket costs the lawyer pays on your behalf, such as registration charges. Ask for a written estimate before you retain someone. Fees differ between firms and with the complexity of the deal.
Title insurance
Many lenders require a title insurance policy, and most buyers purchase an owner's policy at the same time. It protects against problems with the title that a search would not reveal. It is a one-time premium arranged through your lawyer.
Adjustments
If the seller has prepaid property tax, water, or other charges past the closing date, you reimburse them for the portion that covers your ownership. This is settled on the statement of adjustments your lawyer prepares, and the amount depends on the closing date and what has been prepaid.
Home inspection
Optional but strongly recommended on most resale homes. You pay the inspector directly, usually before your conditions come off. Price varies with the size of the home and the services included, such as a septic or well inspection on rural properties.
Appraisal
Your lender may require an appraisal to confirm the property's value supports the mortgage. Some lenders cover it, some pass the cost to you. Ask when you get your pre-approval.
Mortgage default insurance
If your down payment is under 20%, your mortgage is insured and the premium is normally added to the mortgage balance rather than paid in cash, so it does not usually change the cheque you bring to closing. Ask your lender to confirm how it is handled on your file.
Down payment reminder
The federal minimums are 5% of the first $500,000 of the price, 10% of the portion between $500,000 and $1.5 million, and 20% of the full price at $1.5 million or more. Your own lender may ask for more depending on your file.
If you are buying a newly built home
Two extra items:
- HST applies to new construction and is often, but not always, built into the advertised price. Confirm in writing whether the price includes it.
- A new home warranty from a third-party provider is not mandatory in Nova Scotia, but lenders will usually require one. Only homes built by a member builder are eligible, so check that before you commit.
First-time buyers of a newly built home can claim a provincial rebate on part of the HST. Our first-time buyer guide covers it.
Moving and setting up
Movers, utility connection fees, a locksmith, and the first month of home insurance are easy to forget. Home insurance in particular has to be in place on closing day, because your lender will ask for proof.
A simple way to plan
Take the purchase price, work out deed transfer tax for the municipality, and add your lawyer's estimate. Then add a cushion for adjustments, inspection, insurance and moving. That total, plus your down payment, is the cash you need on hand. Akshay walks every buyer through this before they make an offer, so the number is never a surprise.
Frequently asked questions
How much are closing costs in Nova Scotia?
The largest item is municipal deed transfer tax, 0.5% to 1.5% of the price depending on the municipality, with Halifax at 1.5%. Add legal fees, title insurance, adjustments, and any inspection or appraisal costs. Your lawyer provides the exact total before closing.
Can closing costs be included in my mortgage?
Generally no. Deed transfer tax, legal fees and adjustments are paid in cash at closing. The exception is the mortgage default insurance premium, which is usually added to the mortgage balance.
Do I need a lawyer to buy a house in Nova Scotia?
Yes. A Nova Scotia lawyer handles the title search, deed registration, mortgage registration and the transfer of funds.
Is a home inspection required in Nova Scotia?
No, but it is strongly recommended on resale homes. On rural properties, ask about well and septic inspections as well.
Sources
This guide is general information, not legal, tax or financial advice. Rules and rates change; confirm current figures with the source linked above, your lawyer, and your lender before you act on them.
Have a question about buying or selling in Nova Scotia?
Akshay Bansal is a REALTOR® with REMAX Nova in Halifax. No pressure, just straight answers.