Additional Costs When Buying a Home

Deposit: A deposit typically accompanies the offer to purchase.

Mortgage loan insurance: If your deposit for the purchase price of the property is less than 20% you will need to purchase mortgage loan insurance through CMHC.

Insurance: Your lender/ financial intuition will require proof of property insurance for the replacement value of the house and its contents commencing the day you take ownership.

Title insurance: Provides coverage in case of problems with the property title among other things. The cost is relatively low, usually a few hundred dollars.

Home inspection fee: A home inspection report protects the buyer by revealing any facts/issues about the property that may affect the buyers choice to purchase. Often the buyer will choose to have a home inspection report prepared prior to or during the sales process.

Legal fees: Your lawyer will charge you for disbursements which are the costs involved in drawing up the title deed, conducting a title search, and preparing and registering the mortgage.

Land Transfer Tax: To calculate both your Ontario and City of Toronto (if applicable) land transfer taxes click on the calculator tab on the home screen.

Other costs: Make sure to also consider moving costs, fees charged by utilities for service hook-ups, property tax and other adjustments (an adjustment takes place when the seller has already paid for something in advance and wants to be credited for the unused portion on the date the house becomes yours), and ongoing maintenance (condo fees, etc.), and utility costs.

HST: Resale (used) homes are exempt from HST but it does apply to newly constructed homes and may qualify for a partial rebate depending on the sales price and if the home is going to be your primary place of residence.