Homeownership - How much will it cost?

When you have decided on the type of house you want and the price range, just so there are no surprises, you'll need to calculate all the associated costs of the transaction. Here's a list of most of these costs:

CMHC Mortgage Loan Insurance - If you have a high-ratio mortgage (less than 20% downpayment), more than likely yor lender will require mortgage loan insurance. The premium is almost always added to the total mortgage amount and you pay monthly mortgage based on the total mortgage amount;

Appraisal Fee - Your lender may require the property to be appraised at your expense. The cost is usually between $250 and $350 and is payable when you contract for the service. You should ask the bank to waive the appraisal fee (and for competition reasons they do agree);

Deposit - This is the amount you put don as a deposit when you make an offer to purchase. This amount usually is part of the total downpayment you're going to make towards the total price of the property;

Downpayment - This varies with each circumstance. This is the amount of money you have saved as a downpayment towards the purchase of your home (this may or may not include the deposit as described above);

Condo Status Certificate - This applies if you're purchasing a condo. The status certificate provides information on the status of the condominium corporation (litigation, upcoming repairs & maintenance, reserve fund, etc.) and the individual unit. The cost is approximately $100 and may be paid for by the seller;

Home Inspection Fee - A home inspection is a report on the condition of the house and usually costs from $350 to $500 (depending on the location and size of the home);

Land Transfer Tax - This is a tax payable to the province (and municipality if the the municipality requires that - eg Toronto). The cost is based on a formula. Your Realtor or Lawyer will be able to confirm the amount for you;

Property Insurance - The mortgage lender requires this because the home is security for the mortgage. The insurance can cover the cost of damage (water, fire, etc.), theft, etc. and must be in place on closing;

Survey - The seller can usually provide this certificate. Some lenders require you to provide the survey (and some don't). If the seller cannot provide you with a copy of the survey, it could cost you from between $1,000 to $2,000 to have a survey prepared for you;

Legal Fees and Disburesements - This is the cost for the lawyer to prepare all the closing related documents (including title search, mortgage related work, etc.);

Title Insurance - This covers the loss caused by defects of title to the property.

 Depending on age and location of property there may be other costs as well (water tests, septic tank, etc.).

The following are other expenses to consider:


Lawn equipment

Snow Clearing equipment

Window coverings

Decorating materials

Hand tools


Moving expenses

Renovations or repairs

Service connection fees (utilities, gas, cable, etc.)

Condominium fees

These are the most common, there may be other expenses to consider. So, be prepared.




Al Moosa

Al Moosa

CENTURY 21 Leading Edge Realty Inc., Brokerage*
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