FAQ:
1. How much are closing costs in Winnipeg when buying a house?
A good rule of thumb is to budget approximately 2.5% of the purchase price for closing costs.
For example, on a $500,000 home, closing costs are typically around $12,500.
However, this is only a rough estimate. Certain factors—especially tax adjustments—can increase or decrease your final costs.
To get a more detailed estimate, use our Closing Cost Calculator
2. What do Closing Costs include in Manitoba?
Closing costs in Winnipeg typically include:
- Land Transfer Tax
- Land Titles registration fees
- Legal fees, disbursements, and taxes (including title insurance)
- Mortgage interest adjustments (often a few days of interest)
- Property tax adjustments (if applicable)
3. What is the biggest closing cost in Manitoba?
The Land Transfer Tax is usually the largest closing cost.
In most transactions, it makes up well over half of your total closing costs, especially on higher-priced homes.
4. Do I get money back after closing on a Real Estate Purchase?
In some cases, yes.
Lawyers often collect slightly more than necessary upfront to ensure the transaction closes smoothly.
After closing, you may receive a refund cheque if:
- Interest adjustments were overestimated, or
- Certain costs came in lower than expected – Many clients prefer this approach to avoid being asked for additional funds at the last minute.
5. Is 2.5% enough for closing costs in Manitoba?
The 2.5% rule is a helpful estimate, but it is not guaranteed.
Your actual closing costs may be:
- · Higher (due to tax adjustments)
- · Lower (depending on timing and credits).
👉 The best way to estimate is to use a Winnipeg-specific calculator
I see a wide range of general advice as to what you should expect for closing costs. 1-4% of the purchase price. That is why we created a calculator to help provide some general direction for our clients. You can find the calculator here.
I have always suggested a good rule of thumb is to expect closing costs to be 2.5% of the purchase price. On that basis, the closing costs for a property with a purchase price of $500,000.00 would be $12,500.00.
The estimate breaks down as follows:
- Transfer tax: $7,650.00
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- This works out to $1,650.00 on the first $200,000.00 of the purchase price and 2% on the balance of $300,000.00.
- Registration fees at land titles: $274.00
- Legal fees, disbursements, and taxes, which includes title insurance: $2,500.00
- 7 days worth of interest on any mortgage loan amount at bank rate plus 7%: $865.00
- Potential tax adjustments: Can vary dramatically, and can cause the 2.5% estimate to be low.
A portion of the closing costs are returned to the client when we report out because we often over collect to make sure we have sufficient funds to close the deal. I find clients are happier when we are sending them a cheque as opposed to asking them for money a second time. The amount being returned is mostly the amount we collect for any interest obligations a client has under clause 3.(a) of Part Two of the Standard Residential Offer to Purchase Contract.
For an example of how the tax adjustment could cause the 2.5% estimate to be low, assume that a seller pays the entire property tax bill and the sale is closing on September 1. If the property taxes were $5,250.00, the seller’s share of the annual property taxes would be $3,465.21, and the buyer would have to pay the seller $1,784.79. Including the above estimates this would put the total closing costs at $13,073.79. This can work in reverse as well (ie. the closing costs are below 2.5%) where the sale happens in the fist half of the year or before the property taxes are due and paid.
Arguably, the tax adjustment is not a closing costs as the buyer would need to pay this amount to the city for property taxes regardless, however from a client’s perspective, they see it as closing costs, so be careful when using the 2.5% number, and make sure the client understands that this would be a very rough estimate. A client should always call the lawyer for an estimate if they are interested and if necessary, have them ask for a detailed estimate setting out the potential tax adjustment but keep in mind, as tax searches will be required to do such an estimate, the lawyer will likely only be able to do so after they have been retained.
