Cost of Buying a Home
Please Note: Any fees or costs shown are provided as general estimates and guidelines only. Actual costs may vary depending on your purchase and circumstances.
Always confirm applicable fees with your mortgage professional, lawyer, or other relevant service providers.
How Much Should You Budget for Closing Costs?
As a general rule, buyers should budget approximately 1.5%–4% of the purchase price for closing costs, depending on whether you qualify for first-time buyer rebates.
For a Home purchased at $500,000: Approximately $9,000 – $15,000
Upfront Costs to Plan For
Deposit
Down Payment
Home Inspection
$5,000
$25,000
$400 – $600
The deposit is submitted shortly after your offer is accepted (typically within 24 hours). Depending on the property and market conditions. Important to know: The deposit forms part of your total down payment. It is held in trust by the listing brokerage until closing. A stronger deposit can strengthen your offer in competitive situations.
Your down payment is the portion of the purchase price you pay upfront. Minimum down payment in Canada: 5% on the first $500,000. 10% on the portion between $500,000–$999,999. 20% or more for homes $1,000,000+. If your down payment is less than 20%, mortgage insurance (CMHC insurance) will apply.
If included as a condition, a home inspection typically costs: $400–$700 depending on property size. This is a crucial step to identify structural or mechanical concerns before finalizing the purchase.
Lawyer Fees
Please Note: Any fees or costs shown are provided as general estimates and guidelines only. Actual costs may vary depending on your purchase and circumstances. Always confirm applicable fees with your lawyer.
Land Transfer Tax
Legal Fees
Title Insurance
$6,475
$1,500 – $2,500
$300 – $500
Buyers must pay Land Transfer Tax upon closing. The amount is calculated on a sliding scale based on purchase price. First-time buyers may qualify for a rebate (up to $4,000). Your lawyer will calculate the exact amount prior to closing.
You will need a real estate lawyer to complete the transaction. Typical costs: $1,200–$2,000 (varies by firm and complexity). Includes title search, title insurance, registration fees, and document preparation.
Optional, but highly recommended. Title insurance protects you against: Title fraud. Errors in public records. Encroachments or boundary issues. This is usually arranged by your lawyer and is a one-time cost
Mortgage Fees
Please Note: Any fees or costs shown are provided as general estimates and guidelines only. Actual costs may vary depending on your purchase and circumstances. Always confirm applicable fees with your mortgage professional.
Appraisal
CMHC Mortgage Insurance
Purchase Plus Improvement
$200 – $400
$19,000 (4.00% of mortgage amount (e.g $475,000).
TBD
A home appraisal is an independent assessment of a property’s market value, often required by the lender to confirm the home provides sufficient value to support the mortgage amount.
The Canada Mortgage and Housing Corporation (CMHC) is a government-owned corporation that provides mortgage loan insurance, housing research, and affordable housing initiatives in Canada.
Mortgage default insurance is generally required in Canada when a buyer has a down payment of less than 20%. It protects the lender if the borrower defaults on the mortgage.
You will be required to pay the applicable taxes on the insurance premium on closing. While the insurance premium can be added to the mortgage amount, the tax must be paid at closing.
This mortgage option allows buyers to include the cost of eligible renovations in their mortgage when purchasing a home. You typically obtain renovation quotes upfront, the lender approves the improvements, and the renovation funds are released after the approved work is completed and verified.
Costs to keep in Mind
Please Note: Any fees or costs shown are provided as general estimates and guidelines only. Actual costs may vary depending on your purchase and circumstances. Always confirm applicable fees with your any relevant service providers.
Closing Day – Adjustments
Moving &
Expenses
Property Tax &
Utilities
$500 – $2000
$500-$1,500
$3,000 – $5,000 / $300 – $800
On closing day, you may need to reimburse the seller for prepaid expenses such as: Property taxes. Utility bills (if prepaid). Condo fees (if applicable). Your lawyer will calculate these adjustments.
Don’t forget to budget for: Moving company or truck rental. Utility setup fees. Immediate repairs or upgrades. New furniture or appliances. Home maintenance supplies.
Property taxes are annual fees paid to the municipality based on the assessed value of the property and the applicable tax rate.
Utilities are the ongoing costs of operating a home and may include electricity, natural gas, water, sewer, internet and other services. Costs vary depending on the property, household usage and service providers.
New Home Build – Additional Fees
Please Note: Any fees or costs shown are provided as general estimates and guidelines only. Actual costs may vary depending on your purchase and circumstances. Always confirm applicable fees with your any relevant service providers.
HST
New Home Warranty
Utility connection fee
HST is payable on the purchase of newly constructed homes only. If you are purchasing a new home, make sure you know who pays this, you or the builder. On the offer, the purchase price will say “Plus HST” or HST included” and will stipulate which party is entitled to any HST rebates. Many builders include this cost in the purchase price so the buyer does not have to be concerned with paying it as an additional cost at closing. Buyers should be careful when purchasing vacant land as newly severed property may be subject to HST.
In most provinces new homes are covered by a new home warranty program. The cost to the purchaser for this warranty is approximately $600 and should the builder default or fail to build to an agreed upon standard, the fund will finish or repair the deficiencies to a maximum amount. For more information on Ontario new home warranty, visit http://www.tarion.com.
When purchasing a newly built home in Greater Sudbury, utility connection costs may be an additional expense. A preliminary allowance of $10,000–$25,000 can help with budgeting for hydro, water and sewer hookups, although costs vary depending on available services, distance and excavation requirements. Confirm with your builder which connections are included in the purchase price and whether any additional charges will be payable on closing.
My Commitment to You
I will ensure you understand every financial component before you make an offer. Transparency is key, no surprises, no hidden costs. My role is to help you prepare strategically so you can move forward with confidence and clarity.
Ready to Start Your Search?
From pre-approval to closing day, my commitment is to guide you with clarity, strategy, and integrity. I will protect your best interests, communicate openly, and negotiate with confidence on your behalf. My goal is to make your buying experience smooth, informed, and successful, and to remain your trusted real estate advisor long after you receive the keys