How Much Should You Budget for Closing Costs in Newfoundland?

Saving for a down payment is a huge accomplishment — but before you make an offer, it’s important to factor in closing costs so there are no surprises at the finish line.

A good rule of thumb is to budget 1.5–2% of your purchase price for closing costs, regardless of how much your home costs. These fees cover everything involved in legally transferring ownership and finalizing your mortgage.

Here’s what that typically includes in Newfoundland:

1. Legal Fees & DisbursementsYour lawyer will handle the paperwork, title search, and registration of your property. Expect to pay around $1,200–$1,800, depending on complexity.

2. Title Insurance & AdjustmentsTitle insurance protects you from ownership issues. Add a few hundred dollars for that, plus adjustments such as property taxes, fuel oil, or condo fees prepaid by the seller.

3. Mortgage Registration FeesIn Newfoundland, mortgage registration is calculated at $100 plus $0.40 per $100 of the mortgage amount. For example, if you’re borrowing $400,000, your registration fee would be about $1,700.

4. Deed Registration (Document Registration Tax)Instead of a traditional land transfer tax, Newfoundland charges a Document Registration Tax when you take ownership. It’s $100 plus $0.40 per $100 of the property’s purchase price. On a $400,000 home, that’s roughly $1,700.

When you add these up — legal fees, title insurance, registration costs, and adjustments — 1.5–2% of your purchase price is a safe cushion.

So, for a $400,000 home, plan to have about $6,000–$8,000 ready for closing. Having that set aside ensures your home purchase goes smoothly with no last-minute surprises.

Tonia Mercer, Mortgage Broker - The Mortgage Missus Inc.- Premiere Mortgage Centre Inc.

About the author,

Tonia Mercer is seasoned mortgage broker. She has been in the industry for 17 years, in 2021 she launched her own brokerage The Mortgage Missus Inc.. Recently, to provide a wider range of products to her clients she decided to partner with Premiere Mortgage Centre. She hit the ground running and is exciting about the opportunities the move will bring to her and her clients.

Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers. Effectively creating a concierge service for all things financial and real estate.

Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmission 

She can be reached at tonia@themortgagemissus.ca