Closing Costs in Hawaii
The average closing cost in Hawaii is $18,360, which is 1.89% of the home price. Hawaii's transfer tax rate is $0.20 per $100 (up to $600K).
Hawaii's closing costs include a progressive conveyance tax that ranges from $0.15 per $100 for properties under $600,000 to $1.25 per $100 for properties over $10 million. For a typical home purchase, the rate is moderate, but on higher-end properties it becomes significant. Escrow fees in Hawaii are higher than mainland averages due to the complexity of island transactions and the prevalence of leasehold property complications. Title insurance is also more expensive, reflecting the complexity of Hawaii's historical land ownership records.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Avg Closing Costs
$18,360
As % of Price
1.89%
Transfer Tax
0.2%
Attorney Required
No
Closing Cost Breakdown for a $973,555 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $7,788 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $4,868 |
| Transfer Tax | $1,947 |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (optional) | N/A |
| Prepaid Property Tax (2 months) | $519 |
| Prepaid Homeowners Insurance (1 year) | $2,921 |
| Prepaid Interest (15 days) | $2,080 |
| Estimated Total | $21,573 |
* Estimates based on average Hawaii home price of $973,555 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in Hawaii
Understand Fee Simple vs. Leasehold
Leasehold properties are significantly cheaper to purchase but come with monthly lease rent that can be raised periodically. Before buying leasehold, check the lease expiration date, ground rent escalation terms, and the right to convert to fee simple. Financing a leasehold property is more difficult and fewer lenders participate.
Budget for Hawaii-Specific Costs
Beyond standard closing costs, Hawaii buyers often face pest inspection fees (termites are a major concern), hurricane insurance costs, and condo maintenance fee requirements that are higher than mainland averages. Budget 5-7% of the purchase price for total closing costs.
Apply for HHFDC Programs
The Hawaii Housing Finance and Development Corporation offers below-market rate mortgages and the Hula Mae program for first-time buyers. Given Hawaii's extreme prices, these programs provide critical assistance with both rate reduction and down payment help.
Consider Condos for First Purchase
Single-family homes in Hawaii are out of reach for many buyers, but condos offer a more accessible entry point. However, carefully review the condo association's financial health, reserve study, and any upcoming special assessments before committing.
Legal Context for Hawaii Closings
Conveyance Document
Warranty, limited-warranty and quitclaim deeds; condominiums use an apartment deed
Security Instrument
Mortgage
Foreclosure Process
Judicial
Attorney Required
No
Hawaii uses warranty, limited-warranty and quitclaim deeds; condominiums use an apartment deed for property transfers and mortgage as the security instrument. While an attorney is not required, you may still choose to hire one.