Home Buying Closing Costs in Nova Scotia
When browsing homes for sale in Nova Scotia or comparing properties for sale in Nova Scotia, it’s easy to focus on the purchase price alone. However, closing costs are an important part of the home buying process and should be factored into any budget early on.
This page explains common home buying closing costs in Nova Scotia, including legal fees, deed transfer tax, adjustments, and other expenses buyers may encounter before receiving the keys. A clear breakdown and example are included below to help buyers understand what to expect and plan with confidence when purchasing a home.
Please note: The information provided here is intended as a general guide for typical residential, single-family home purchases. Closing costs can vary for other property types, including condominiums, multi-unit properties, commercial real estate, or new construction, and may involve additional considerations or fees.
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Deposit vs Down Payment in Nova Scotia Real Estate
When buying real estate in Nova Scotia, the terms deposit and down payment are often used interchangeably, but they are NOT the same thing. Understanding the difference is important when budgeting for a home purchase and preparing to make an offer.
Both are part of the buying process, but they serve different purposes and are paid at different times during a Nova Scotia real estate transaction.
What Is a Deposit?
A deposit is a sum of money submitted shortly after an offer to purchase is accepted. It demonstrates the buyer’s serious intent to proceed with the transaction and forms part of the purchase contract.
In Nova Scotia:
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The deposit is typically payable within a set number of days after offer acceptance
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It is usually held in trust (often by a brokerage or lawyer)
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The amount is negotiated as part of the offer
If the transaction completes, the deposit is credited toward the buyer’s total purchase costs. If the deal fails to close due to unmet conditions outlined in the agreement, the handling of the deposit depends on the specific terms of the contract.
What Is a Down Payment?
A down payment is the portion of the purchase price paid directly toward the home at closing. It is applied to the mortgage and affects borrowing requirements, mortgage insurance, and monthly payments.
Key points about down payments in Nova Scotia:
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Paid on closing day, not at offer acceptance
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Often includes the deposit as part of the total amount
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Minimum amounts are governed by Canadian mortgage rules
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Larger down payments may reduce borrowing costs
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The down payment is arranged through the buyer’s lender and legal professional as part of the final closing process.
What happens to the deposit at closing?
At closing, the deposit is credited toward the buyer’s total purchase costs and is applied as part of the down payment. The funds are transferred from the trust account where the deposit is held and are accounted for in the final statement of adjustments prepared by the lawyer. The deposit does not represent an additional cost at closing, but rather money already paid in advance toward completing the purchase.
Costs During the Conditional Period
After an offer is accepted, the transaction enters the conditional period. During this time, certain upfront costs may arise as the buyer works to satisfy the conditions outlined in the agreement of purchase and sale. In Nova Scotia, the length of the conditional period varies by transaction and negotiation, but it can be as short as one week, with two to three weeks being common in many home purchases.
Property INspection
A home inspection is one of the most common conditional-period expenses and helps identify potential issues with the property before closing. For a typical single-family home under 2,500 square feet, the cost is approximately $590 + HST. Prices may vary based on property size, age, and inspection scope.
Septic INspection
If the property is not connected to municipal sewer services, it will rely on a septic system. A septic inspection is an important step in understanding the condition and functionality of that system. When completed at the same time as a home inspection, the typical cost is $400 + HST. Costs may vary depending on access, system type, and inspection requirements.
Water Testing
Properties on well water require water testing as part of the buying process. A basic bacterial water test is free when submitted to a Nova Scotia Health lab, or approximately $60 + HST through a private laboratory. More comprehensive testing, such as full mineral or metal analysis, is optional and typically ranges from $80 + HST to $500 + HST. For mortgage approval purposes, the minimum required test is usually the basic bacterial test.
Deposit
The deposit amount and payment timeline are outlined in the Agreement of Purchase and Sale. This is typically payable shortly after the offer is accepted and is held in trust. The deposit is later credited toward the buyer’s purchase costs at closing.
Insurance Considerations
While home insurance is not a direct cost during the conditional period, it is an important requirement to address at this stage. Buyers must ensure the property is insurable and that an insurance policy can be put in place for closing day. Certain property features may affect insurability and should be reviewed early.
Appraisal
In many cases, lenders require an appraisal to confirm the property’s value. Often, this cost is covered by the lender or arranged by the mortgage broker; however, in some situations, the cost may be passed on to the buyer. When applicable, appraisal fees are typically around $500 + HST, though this can vary.
Costs When the Purchase Goes Firm
Down Payment
The down payment is the portion of the purchase price paid toward the home at closing. For many buyers, this is typically 5% of the purchase price, although higher amounts may be required depending on the purchase price, mortgage product, or lender requirements. The deposit already paid earlier in the transaction is credited toward the total down payment.
Legal Fees
Buyers are responsible for legal costs related to completing the purchase, including title searches, document preparation, and registration. Legal fees for a standard residential transaction are typically around $1,500 + HST, though costs can vary depending on complexity and property type.
Title Insurance
Title insurance is a one-time cost paid at closing that protects against certain title-related issues, such as unknown liens, title defects, or errors in public records. Policies usually protect both the buyer and the lender and remain in effect for as long as the buyer owns the property. In Nova Scotia, title insurance commonly ranges from approximately $300 to $500 + HST, depending on the purchase price and insurer.
Property Tax Adjustments
Property taxes are adjusted on a pro rata basis at closing. This means the annual property tax amount is broken down into a daily rate, and the buyer reimburses the seller for the portion of the year the buyer will own the property. The exact amount depends on the municipal tax rate and the closing date.
Oil Tank Adjustment
If the property is heated with oil, the seller will often have the oil tank filled prior to closing. The buyer then reimburses the seller for the remaining oil based on the tank level at closing. This amount appears as an adjustment on the statement of adjustments prepared by the lawyer.
Moving costs
Moving expenses vary widely depending on distance, volume, and service level. Full-service moving companies commonly cost $2,000 or more, while renting a van or truck typically ranges from $100 to $500 + HST, depending on size and duration.
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examples...
The example below shows how typical closing and pre-closing costs might look for a standard residential home purchase in Nova Scotia. This is intended to illustrate how various costs can come together throughout the buying process and should be used as a general guide only.
Actual costs will vary depending on the purchase price, property type, financing, location, and the specific terms outlined in the Agreement of Purchase and Sale. Not every transaction will include every cost shown, and some expenses may be higher or lower than illustrated.
Example | Purchase Price | Septic Tank | Well Water | Deposit | Down Payment (%) | Legal Fees | Property Tax Adjustment | Oil Adjustment |
|---|---|---|---|---|---|---|---|---|
1 | $350,000 | Yes | Yes | $3,500 | 5 | $1,500 | $1,895 | $600 |
2 | $500,000 | No | No | $5,000 | 7 | $1,500 | $3,000 | $300 |
3 | $400,000 | Yes | Yes | $4,000 | 5 | $1,500 | $800 | N/A |
The figures below relate to Example #1 shown in the table above. These amounts are provided for illustrative purposes only and are based on typical real estate practices and current information available at the time of writing.
Property Tax Adjustment
Property tax is calculated on a pro rata basis. The annual tax amount is divided by 365 days and then multiplied by the number of days remaining in the tax billing period that the buyer will own the property.
House Inspection
$590*
Septic Inspection
$400*
Water Test (Bacterial)
$60*
Deposit
$3,500
Down Payment
$17,500
Title Insurance
$500
Legal Fees
$1,500*
Property Tax Adjustment
$1,895
Oil Adjustment
$600*
Sub Total (HST Items)
$3,150
HST (14%)
$441
Sub Total (Non HST)
$23,395
Total Closing Costs
$26,986
The figures below relate to Example #2 shown in the table above. These amounts are provided for illustrative purposes only and are based on typical real estate practices and current information available at the time of writing.
Property Tax Adjustment
Property tax is calculated on a pro rata basis. The annual tax amount is divided by 365 days and then multiplied by the number of days remaining in the tax billing period that the buyer will own the property.
House Inspection
$590*
Deposit
$5,000
Down Payment
$35,000
Title Insurance
$500
Legal Fees
$1,500*
Property Tax Adjustment
$3,000
Oil Adjustment
$300*
Sub Total (HST Items)
$2,390
HST (14%)
$334.60
Sub Total (Non HST)
$43,500
Total Closing Costs
$46,224.60
The figures below relate to Example #3 shown in the table above. These amounts are provided for illustrative purposes only and are based on typical real estate practices and current information available at the time of writing.
Property Tax Adjustment
Property tax is calculated on a pro rata basis. The annual tax amount is divided by 365 days and then multiplied by the number of days remaining in the tax billing period that the buyer will own the property.
House Inspection
$590*
Septic Inspection
$400*
Water Test (Bacterial)
$60*
Deposit
$4,000
Down Payment
$20,000
Title Insurance
$500
Legal Fees
$1,500*
Property Tax Adjustment
$800
Sub Total (HST Items)
$2,550
HST (14%)
$441
Sub Total (Non HST)
$25,300
Total Closing Costs
$28,291