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Kevin Thomson

Kevin Thomson

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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:

  • Employment
  • Credit score
  • Amortization (25 years)

The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your downpayment. 

  • You can calculate your mortgage and insurance here.
  • The insurance premium is also subject to HST and must be paid at time of closing

How does this benefit consumers?

  • First time home buyers are the more typical consumer that fall into the “High Ratio Mortgage” category.

 

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.

  • You can calculate your Land Transfer Tax here.

  

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.

**Premiums based on Stewart Title Guaranty Company. There may be some variation in premiums with different insurers. May be subject to solicitor’s administration fees.
 

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

Incidental costs.

 

*All costs are approximate or “on average” costs.