FB Pixel

Real Estate Information Centre

Additional costs that could add up when you buy your home

Home Appraisal Fee – Your property valuation determines the lending value on the property for mortgage purposes. This value may differ from the purchase price of the home.

Approximate cost - $200 to $300

Home Inspection Fee – A home inspector evaluates your home to determine if any there are any structural or systems problems that need to be addressed. This may not apply if the home being considered is new. It is not mandatory but can be money well spent.

Approximate cost - $500 to $700

Property Survey Costs – A survey indicates the measurements and the boundaries of the land on which the home is located. It also indicated the positions of major structures as well as any easements or encroachments on the property.

Approximate cost - $800 to $1000

Estoppel Certificate - An estoppel certificate is issued by a condominium corporation to confirm the balance in the contributions account for a particular unit. If monthly contributions are not up-to-date, the amount owing belongs to the unit, not the previous owner, and a buyer would be responsible to pay the amount owed.

Approximate cost - $300

Legal fees and disbursements – Legal fees vary from province to province. Ensure you quote includes are related expenses and disbursements as well as legal fees.

Approximate cost - $1000 to $2500

Title Insurance – This covers issues that may arise due to encroachment issues, existing liens against the title, title fraud, undischarged mortgages and other issues. It is an optional insurance but can be worth the cost.

Approximate cost - $300 to $500

Land/Deed/Title transfer – This tax varies by province and is charged whenever a property changes hands. The tax is based on the purchase price of the property. Further details are available on provincial or municipal websites.

Approximate cost - For a quick estimate use the MortgagePlanner from MoneyPages

GST/HST – Some properties are exempt and some are not. Generally GST or HST applies new home but not on resale. Check whether this tax is applicable on the purchase of your property.

CMHC Insurance – Mortgage payment default insurance for high ratio mortages

Approximate cost - For a quick estimate use the MortgagePlanner from MoneyPages

Interest Adjustments – Interest will need to be paid on any gap between the closing date of the purchase and the first payment date of the mortgage. If the mortgage payment is exactly one payment period after closing date, there will be no interest adjustment.

Approximate cost – check with your real estate agent and your banker.

Prepaid expenses – The vendor must be reimbursed tor any prepaid taxes or utility bills

Approximate cost – check with your real estate agent and your lawyer

Home Insurance – This insurance provides financial coverage your home and contents in the event of fire and/or other disasters.

Approximate cost - $500 per year, obtain an accurate quote from your general insurance broker.

Mortgage life insurance – Life insurance protects your family's financial security in the event of the premature death.  Mortgage life insurance purchase from the bank or credit union can be expensive. It is often less expensive to purchase additional life insurance from your insurance broker with the bank (or credit union) named as the first payee.

Approximate cost – Check with your insurance broker as well as your banker to compare coverages and costs