You're Buying a Home... But What’s It Really Going to Cost You?

There’s nothing quite like the excitement of shopping for a new place. Whether you’re scrolling through listings, picturing your furniture in a new space, or dreaming up renovation ideas, it’s easy to get caught up in the fun. But while the down payment usually gets all the attention, it’s just one piece of the financial puzzle. Buying a home comes with a whole list of other costs—some expected, others not-so-much. Let’s walk through them so you know exactly what to plan for.

1. Legal Fees

Buying a home isn’t just about signing on the dotted line—there’s a legal process that needs to happen to make everything official. A lawyer handles that for you. Legal fees for a home purchase typically start around $1,250, and if you’re also selling a property, there will be additional legal costs to discharge the old mortgage and tie up the sale.

2. GST on New Homes

If you're buying a previously owned home, GST doesn’t apply. But if your new home is a brand-new build, then GST will be part of the final price. It’s something many buyers forget to factor in.

3. Home Inspections

While not mandatory, inspections are one of the smartest things you can invest in. They can help you avoid expensive surprises later on—and even give you some negotiation power before you finalize the deal.

Here are a few types to consider:

• General Home Inspection: A certified inspector checks the overall condition of the home and lets you know what might need attention.
• Sewer Scope: Especially helpful in older neighborhoods where tree roots can damage sewer lines.
• Asbestos Testing: If you’re buying an older property, it’s worth checking for hazardous materials that were commonly used decades ago.

If the inspection uncovers issues, you may be able to ask the seller to fix them or reduce the price. Sometimes repair costs can even be added to your mortgage, if you include quotes with your application.

4. Mortgage Insurance

If you’re putting down less than 20%, mortgage default insurance (commonly known as CMHC insurance) is required. It’s based on a percentage of the purchase price and gets added to your mortgage—not something you need to pay out of pocket at closing.

5. Title Insurance

This is a one-time cost, usually around $305 plus GST, collected by your lawyer. It helps protect you against potential issues with the property’s title and is often used in place of a Real Property Report.

6. Property Tax Adjustments

If the seller has prepaid the property taxes for the year, you’ll need to reimburse them for the portion that applies to your ownership. Your lawyer will calculate this for you as part of the closing process.

7. Condo Fees (If Applicable)

Buying a condo? Don’t forget about monthly condo fees. It’s also a good idea to have a professional review the condo documents before your purchase to make sure the building is financially sound and not facing major repairs.

8. Utility Deposits and Ongoing Costs

Depending on your credit score and payment history, some utility providers might ask for a deposit before they’ll connect services like electricity, water, or gas. It’s usually a relatively small amount, but it can still catch you off guard if you haven’t budgeted for it. And don’t forget—once those utilities are set up, they’ll become part of your regular monthly expenses. Owning a home means staying on top of everything from heating bills to internet plans, so it’s smart to factor those into your overall budget from the start.

9. Home Insurance

If there’s a mortgage on the property, home insurance is non-negotiable. Prices can vary widely depending on coverage, location, and home value, so it pays to shop around and make sure you’re getting the protection you need.

10. Mortgage Penalties

If you’re selling a home and can’t move your mortgage to the new property, you may face a penalty for breaking your current mortgage early. It’s best to call your lender and ask for a payout statement so you know what to expect.

11. Appraisals

If you’re putting more than 20% down or buying privately, your lender may ask for a professional appraisal to confirm the value of the property. Expect to pay between $300 and $500.

12. Moving Costs

Whether you’re renting a truck, hiring movers, or doing it all with a couple of friends and a lot of coffee, moving costs money. Budget for packing supplies, fuel, and a bit of chaos.

13. Personal Insurance

Your home is a major investment—and it’s worth protecting beyond the structure itself. Make sure you’ve reviewed your life, disability, and critical illness insurance. If something unexpected happens, you’ll want to know your mortgage and family are covered.

14. Realtor Fees (When Selling)

If you’re working with a Realtor to sell your current home, you’ve likely already agreed to their commission. That amount is deducted from the sale proceeds and paid out through your lawyer at closing.

The Bottom Line

Buying a home is a big move—financially and emotionally. But when you know what to expect (beyond the down payment), it’s easier to plan and avoid surprise expenses. A little preparation goes a long way.

If you ever want help navigating all of this, I’m always here to walk you through it.