Buying a home involves both one-time costs and more regular monthly expenses. It's important that you take both into account when you're figuring out how much you can spend on a home.
The largest one-time cost is the down payment, which usually represents up to 25% of the total price of the property. Then, in addition to the actual purchase price, there are a number of other expenses that you may be expected to pay for.
Typical One-Time Expenses
- Mortgage application and appraisal fee (paid at time of application)
- Appraisal fee (paid at inspection)
- Property inspection (optional) (paid at closing)
- Legal fees (paid at closing)
- Legal disbursements (paid at closing)
- Deed and/or mortgage registration (paid at closing)
- Property survey (sometimes provided by seller) (paid at closing)
- Land Transfer, Deed Tax or Property Purchase Tax (in Quebec within3 months following signing) (paid at closing)
- Mortgage interest adjustment and take over fee (if applicable) (paid at closing)
- Adjustments for fuel, taxes, etc. (paid at closing)
- Mortgage insurance (and application fee if applicable) (paid at closing)
- Home and property insurance (paid at closing and on-going)
- Connection charges for utilities such as gas, water and electricity (paid on date of move)
- Moving expenses (paid on date of move)
Other costs may include landscaping, decorating, furnishings, appliances and repairs. Typical monthly costs include mortgage payments, maintenance, insurance, condo fees, property taxes and utilities.