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Additional costs to keep in mind before buying

Blog by Nick Labrosse | July 24th, 2020

Before Buying a Home, Keep in Mind These Additional Costs

Buying a home can be an exciting time, the last thing you want is unexpected costs on closing which would cut into your renovation budget or furniture budget for example. Wether you’re buying your first home, or trading up to a larger one, there are many costs that you must include in your calculation of affordability. These extra fees, such as taxes and other additional fees could surprise you with an unwanted financial nightmare on closing day if you’re not informed and prepared. 

Most of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation; however it’s better to know about them ahead of time so you can budget properly. Here are some of the additional cost you can expect to pay when buying a home in Ontario:


Home inspections and septic inspections are always recommend when buying a home, such inspection can prevent you from spending even more money on repairs. It may also give you a way to renegotiate the current agreement of purchase and sale. It also helps you budget future expenses and avoid additional unexpected damage. Each inspection is approximately $500.


Your mortgage lender may request or require an appraisal of the property’s worth which will be your responsibility to pay for. Appraisals can vary in price from approximately $175 to $300. In some instances, some mortgage companies will absorb this cost for you.

Property Taxes 

You may be asked to pre-pay a portion of the property taxes based on the current closing date, depending what the seller has already contributed towards property taxes. The lawyer will take care of pro-rating this amount to the day you’ve moved in.


If required, your lending institution may ask for an updated property survey. The cost for this survey, which again will be yours to bear, can vary between $700 and $1,000 depending on the size of the property.

Mortgage Insurance

Depending on the down payment the buyer puts down, mortgages require mortgage loan insurance when less than 20% is given. Mortgage insurance is an insurance policy that protects a mortgage lender or titleholder if the borrower defaults on payments, dies or is otherwise unable to meet the contractual obligations of the mortgage.  It may pay off either the lender or the heirs, depending on the terms of the policy. The two common companies offer mortgage insurance are CMHC and Genworth.

Moving Costs
The cost for a professional mover can cost you in
the range of:
• $100-$200/hour for a van and 3 movers, and

• Many movers charge 10-20% higher fees during peak demand seasons and sometimes on long weekends. 

Condo Fees
Condos charge monthly fees for common area maintenance such as grounds-keeping, carpet cleaning in hallways, hydro and swimming pool costs etc. These fees will vary depending upon the building’s age, its amenities and its general state of repair. 

Water Quality and Quality Certification
If the home you purchased is serviced by a well, you should consider having your water checked by local experts in order to certify the quantity and quality of your water. 

Property Insurance 

Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are adequately insured as it protects their investment on the loan. Again, the cost of insurance is at your expense 

Legal Fees 

If the town you live in has made local improvements, these infra-structure expenditures could impact a property’s taxes by thousands of dollars and for years to come. 

Land Transfer Tax 

This tax is applied whenever real property changes hands; and the amount that is applied can vary. First time home buyers can get a credit of up to $4,000 towards this cost.