No land transfer tax — but there are registration fees

In provinces like Ontario and British Columbia, buyers pay a land transfer tax that can run into the tens of thousands of dollars. Newfoundland and Labrador doesn’t have one. Instead, the province charges a fee to register your deed — and your mortgage — at the Registry of Deeds.

The formula comes from the province’s fee schedule: $100, plus 40 cents for every additional $100 (or part of $100) of value over $500. It’s charged separately on the deed and on the mortgage, and the mortgage fee is capped at $5,000.

For example, on a $375,000 home bought with 10% down:

  • Deed registration: about $1,598
  • Mortgage registration (on a roughly $348,000 insured mortgage, including the CMHC premium): about $1,490
  • Total: roughly $3,100

Your lawyer pays these at closing and lists them on your statement of adjustments.

Legal fees

A lawyer handles the legal side of your purchase — checking the title, registering your documents and moving the money. Their fee, plus disbursements (out-of-pocket costs like searches) and HST, is one of your larger closing costs. Fees vary, so ask for a quote up front. We’re always happy to share the names of local lawyers our clients have had good experiences with.

Home inspection

On a resale home, an inspection is money well spent. A good inspector can flag issues with the roof, foundation, electrical, plumbing and heating before you’re committed. Expect roughly $500 to $800 plus HST — your inspector will quote you. (Buying in winter? A snow-covered roof can’t always be fully inspected — more on that in our post on buying or selling in winter.)

Title insurance

Many buyers — and many lenders — use title insurance, which protects against problems like survey issues or defects in the title. It’s a one-time premium, usually arranged through your lawyer.

Property tax and water adjustments

Municipal property tax in the St. John’s area is billed once a year, and many sellers pay the full year up front. If so, you’ll reimburse the seller at closing for the part of the year after you take possession — and the same goes for water and sewer tax. If the seller hasn’t paid yet, the adjustment runs the other way. Want a sense of the annual bill? Our Property Tax Calculator estimates property tax and water/sewer for St. John’s, Mount Pearl, Paradise, CBS and Torbay.

Heating oil

Plenty of homes here still heat with oil. If the house you’re buying has an oil tank, it’s common to reimburse the seller for the oil left in it at closing. Check with your insurer early, too — insurers often have requirements around the age and condition of an oil tank, and you’ll need proof of home insurance before you close.

Mortgage-related costs

If you put less than 20% down, you’ll pay a mortgage default insurance premium — but it’s usually added to your mortgage rather than paid in cash at closing. Your lender may also require an appraisal, so ask whether they cover it. Our mortgage calculator shows the premium for your price and down payment.

Buying a new build?

Resale homes aren’t subject to HST, but newly built homes are (HST is 15% in Newfoundland and Labrador). It’s usually built into the builder’s price, but confirm that in writing. First-time buyers of a new home may also qualify for a GST rebate — see our guide to first-time home buyer programs.

The costs people forget

  • Moving costs (book early if you’re moving in summer or around the holidays)
  • Utility connections and any deposits
  • Immediate must-dos — paint, appliances, changing the locks
  • A small buffer for surprises

So how much should you budget?

Because there’s no land transfer tax, closing costs here tend to be on the lower side. A common rule of thumb is to set aside around 1.5% to 2% of the purchase price on top of your down payment — on a $375,000 home, roughly $5,600 to $7,500. Your lawyer will confirm the exact figure before closing.

And if it’s your first home, the First-Time Home Buyers’ Tax Credit can put up to $1,500 back in your pocket at tax time. Thinking about whether you’re ready to buy at all? Our post on renting vs. buying in St. John’s runs the numbers.

Source: registration fees from the Government of Newfoundland and Labrador’s Registry of Deeds prescribed fee schedule.