Costs Associated With Buying A Home
The purchase price of your home is only one of the costs you’ll encounter. Here are other possible costs you need to consider:
Appraisal - $250 – $350
This is the fee for determining the property’s lending value for mortgage purposes. This value may or may not be the same as the purchase price of the home. Your lender will sometimes cover the cost of to earn your business.
Home Inspection Fees - $350 – $750
The home inspector evaluates the structures & systems that make-up the home and provides you with a written report. While not a requirement, many home buyers make a professional home inspection a condition of their “Offer to Purchase”.
Insurance Costs for High-Ratio Mortgages - 1.80% to 3.15%
A high-ratio mortgage applies to people that have less than 20% of a down payment to put towards the purchase of a home. In these cases, you must qualify for mortgage insurance through one of three insurers – Genworth, CMHC or Canada Guaranty
You can qualify for up to 95% of your home’s value based on the following criteria:
The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your downpayment.
How does this benefit consumers?
Land Transfer Tax – See calculator below
These fees are paid to the government whenever a property changes ownership. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax. The maximum amount of the refund is $2,000.
Legal Fees/Disbursements - $800 (fee) plus $400 – $500 (disbursements)
Ensure your lawyers quote includes all related expenses.
Title Insurance - See calculator below
The word "title" refers to a person’s ownership interest in their property. By purchasing title insurance, homeowners are protecting their ownership to their property, and their lender’s priority in the mortgage against losses arising from various title and off-title risks. It’s a wise investment and covers problems that may arise including but not limited to survey irregularities, work orders, liens, violations or other issues relating to the validity of title. Learn more here.
See Premium Calculator here.
Property Survey - $1,000 – $2,000
A document that illustrates the property boundaries and measurements, specifies the location of buildings on the property, and indicates any easements or encroachments. This may not be required if Title Insurance is obtained.
Adjustments - $400 – $700
You will be required to reimburse the seller for any prepaid property taxes or utility bills and the like.
Moving Costs - $1500 – $5,000
The cost of the services of a professional mover or a rental truck, if you move yourself.
Home Insurance - $1,000 – $2,000/yr
Protection of your home and contents.
Miscellaneous Costs - $500 – $2,000
*All costs are approximate or “on average” costs.