It is essential for buyers to understand the full financial requirements involved in closing a real estate transaction. Beyond the mortgage down payment, buyers should allocate approximately 1.5% to 2% of the property's purchase price to cover closing costs. These may include land transfer tax, legal fees, title insurance, title search fees, mortgage registration charges, as well as adjustments for prepaid property taxes and utility bills up to the closing date. Buyers should also know that a CMHC(Canada Mortgage & Housing Corporation) Insurance fee up to 4 % is added to mortgage amount if the down payment is less than 20% of the  Purchase Value.  Being financially prepared for these expenses contributes to a smooth and efficient closing process.