Costs involved in purchasing a home

Aside from your down payment and mortgage, which will cover the purchase price of your home, there are many other costs to consider before buying a home.

You will pay some costs at the beginning of the home buying process & others, once your home buying process is finalized.


Below are the costs that can add-up when buying a home.

(Some costs may differ depending on the type of property and dimensions)


Home inspection fee (May not apply if purchasing a new home)

Once your promise to purchase offer is accepted with the condition of having a building inspector of your choice to inspect the property, your inspector will check the interior & exterior of the house and provide you with a detailed photographic report.

Approximate cost: $200-$550

Deposit with offer

A deposit that counts towards your down payment may be required when making your offer to purchase. Typically it should be 1% of the purchase price & should be a certified cheque.

Approximate cost: $2000

Home insurance

You must have a home insurance policy, which covers the replacement of the home and its content, in place before heading to the notary, otherwise the transaction cannot be completed and transfer of ownership will be delayed.

Approximate cost: $450

Prepaid Municipal/School tax & utility adjustments

On the day of your notary appointment to ensure transfer of ownership to you, the notary will require you to reimburse the seller for any prepaid property taxes which involve municipal and school tax and if applicable utility bills.

Approximate cost: $500

Notary fee

Your notary who is the only one in Quebec legally authorized to transfer ownership, verify all related documents, verify seller’s & buyer’s true identities & if there are any mortgages that need to be radiated (to name a few), will charge a fee to process and register the transaction.

Approximate cost: $900-$1350


Generally the sales taxes are based on newly built homes or properties that have gone major renovations or alterations of (90% or more) of the existing building and not on resale homes.

Approximate cost: Variable

Mortgage default insurance

Mortgage default insurance, which is commonly referred to as CMHC insurance, is mandatory for a down payment between 5% and 19.99%. Mortgage default insurance protects, in the event a borrower ever stopped making payments and defaulted on their mortgage loan.

Approximate cost: Variable

Welcome tax or Land transfer tax

This tax is charged to the new owners of the home, condo or land and it is based on the purchase price of the home. First time homebuyers may be exempt from a portion of this cost. You are billed typically a few weeks after becoming the new owner.

Approximate cost: 0.5%-1.5%


Don’t forget to consider general expenses such as moving, storage fee, upgrades or renovations, and home decorating costs as well.

Vic Patel

Vic Patel

Real Estate Broker
CENTURY 21 Vision
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