289-755-0146 amy@amycoburn.com


We see it time and time again, first time home buyers, (even second and third time) caught off-guard by the costs of buying a home.  Here is a list of some of the big and little expenses that you need to plan for when house hunting.
Land Transfer Tax – When a property changes ownership, the province of Ontario and some municipalities, like Toronto, charge a fee called Land Transfer Tax.  It can range from 0.5% to 2.0% of the homes purchase sale price.  First-time home buyers may qualify for a rebate of up to $2000 in Ontario.  Our Land Transfer Tax Calculator can help you estimate what it will cost you.
Update: As of January 1, 2017, rebate was increased to $4,000.
Moving expenses – Whether it is hiring professional movers or renting a truck and buying your friends some pizza and beer these costs can add up to several hundred dollars.  Don’t forget the cleaning supplies and new locks.
Home Inspection – They can range from about $350 to $450 but are worth it.  They can make you aware of issues that you may miss, like structural, electrical or plumbing problems.  It could identify harmful mould or issues with insulation or the roof.  They can recommend any repairs or potential repairs that may be needed.
Appraisal – Your lender may require an appraisal of the home to confirm the value.  This can cost approx. $300-$500, depending on the property’s location.
Insurance – If you are putting less than 20% down of the purchase price, you will need to pay for mortgage insurance (this is not the same as mortgage life insurance).  The cost of this insurance can be added to your mortgage, however you will be required to pay PST (8% in Ontario) on the premium at closing.  Talk to your broker to find out how much it will cost you.  Lenders will also require you to get title insurance on the property.  It can range from $150 to $350.  In addition, you will need home/fire insurance.  You will be required to show proof that the property is insured. Depending on the property and coverage you should count on it being a minimum of $500 per year.
Prepaid Expenses and Set-up Costs – You will need to pay the seller for any prepaid property taxes or utilities at closing.  If you are purchasing a new build, you may have to pay for installation of water/gas/hydro meters and your hot water tank.  If this is your first home you may have to pay set-up fees and deposits for your utilities.  These can cost you hundreds of dollars.
Legal Fees – You will also have to pay legal fees for a lawyer.  They will have to register your mortgage and transfer title of the property.   They will also review your purchase agreement, do a title search and review the condo status certificate, if applicable, to make sure everything is in order.  Basic legal fees are approx. $900 to $1,200 plus disbursements.This is just a list of basic costs for buying a home.  If you are selling a home as well, you will need to add realtor fees (plus HST) and possible mortgage penalties for breaking an existing mortgage.