Reconcile money already paid with the amount still needed at closing, using a practical cash worksheet.
Your down payment is only one line
Buying costs can include inspection and legal charges, property-tax adjustments and title insurance. Which costs apply depends on the purchase. FCACâs home-buying guide is a starting checklist; use written figures for your own transaction rather than treating a rough allowance as a quote.
Organize your budget by when the money leaves your account: already paid, due before closing, due through the lawyer or notary, and needed after possession. This structure is often more useful than one large âclosing costsâ number.
Build the transaction checklist
CMHCâs purchase-cost guide identifies appraisal and inspection costs, land-registration charges, legal work, prepaid tax or utility adjustments, and property insurance. Some properties also need a survey, well or septic review. Use CMHCâs purchase-cost checklist.
- Due diligence: ask which inspections or reports are needed and when payment is due.
- Transfer and registration: have the legal professional calculate local taxes, exemptions and filing charges.
- Legal statement: separate the professional fee from taxes and disbursements.
- Adjustments: identify prepaid expenses being reimbursed to the seller.
- Possession: budget moving, setup and an uncommitted reserve.
Keep the estimate date and the person who supplied each figure. An updated tax adjustment should replace the old line, not be added as a second charge.
Reconcile a worked cash example
Assume a $600,000 purchase with $60,000 down. A $20,000 deposit has already been paid. For illustration only, assume your transactionâs quoted closing charges and adjustments total $12,500. That amount is a hypothetical input, not a standard Canadian fee.
| Cash item | Amount |
|---|---|
| Remaining down payment | $60,000 â $20,000 = $40,000 |
| Closing charges and adjustments | $12,500 |
| Still required for closing | $52,500 |
| Moving and setup allowance | $1,500 |
| Reserve retained after the move | $6,000 |
| Total funds still needed for this plan | $60,000 |
The deposit is absent from the final total because it has already been paid. The reserve is included because the plan intends to keep it, not because it is a charge payable to the lawyer.
Keep financed insurance out of the wrong column
If a mortgage insurance premium is financed, it increases the mortgage instead of being paid from the same closing cash. Applicable provincial premium tax must be paid separately. CMHC explains premium financing and tax.
Label the premium âfinancedâ or âpaid in cash.â Include it once in the correct place, and check that the mortgage payment uses the resulting loan amount. Do the same for any fee the lender permits you to finance.
Compare the final statement with your plan
When the closing statement arrives, check the deposit credit, remaining contribution and each adjustment against your worksheet. Ask for any unfamiliar item to be explained before arranging funds. Verify the payment instructions directly through your established legal contact.
Use the residential calculator to compare borrowing scenarios, then reconcile the selected scenario with the transaction-specific closing statement. Keep the move and reserve budget beside it so you can see what will remain after completion.
Put the figures into a scenario
Use the appropriate assumptions, compare the results and save a summary for your file.
Open the Residential Calculator âSources and review
References checked September 22, 2026. Examples are illustrative; confirm the lender, insurer and program requirements for your situation.