The Hidden Costs of Buying a Home

This tax varies by location. In Toronto, there's both a provincial and a municipal land transfer tax, which can amount to a significant sum.

You'll need a lawyer to handle the legal aspects of the transaction, which can cost between $1,000 to $2,500, depending on the complexity of the purchase.

If your down payment is less than 20%, you’ll need to pay for mortgage default insurance (CMHC insurance), which can add thousands of dollars to your costs. This is usually rolled into your mortgage but adds to your monthly payments.

Protects you against potential issues with the property title, like disputes or fraud. This typically costs between $300 to $500.

Lenders require property insurance before closing the deal. Costs can vary widely, but expect to pay around $1,000 to $2,000 annually.

Home Inspection: Typically costs between $300 to $500. It's essential for identifying potential issues with the property before finalizing the purchase.

Appraisal Fee: Required by lenders to assess the property's value, costing around $300 to $500.

Ensure you budget for property taxes (often paid monthly or annually) and higher utility costs, especially if moving from a smaller property.