Costs to Consider When Buying a Home

  1. Determine the amount you can put down for your down payment
    • Minimum 5% of purchase price
    • if less than 20% down payment, there’s additional insurance premium from CMHC Premium calculator
  2. Meet with your lender or mortgage broker to determine how much you can afford (maximum purchase price). You can use the Calculators on CMHC website to get some ideas but always meet with a lender to get pre-approval before shopping for a home to avoid disappointment later on in the process.
  • How much home you can buy is calculated based on mortgage payment, property taxes, heating costs, any current debts, gross monthly household income, home insurance, etc (depending on your lender).
  • Usually the monthly mortgage and housing cost should be no more than 28-32% of your gross monthly household income (some lenders use take-home pay instead of gross income)
  • Appraisal fee (some lenders pay for this)
  • GST/PST on newly constructed homes
  • Buyers pay Property Transfer Tax 1% on first $200,000 and 2% on balance (Sellers pay real estate commission)
  • Home inspection – around $300 for condos, $350-$400 for townhomes and $500 and up for houses depending on the size of the home.
  • Lawyer or notary public fees from $600-$1200 or more
  • Site survey for single family homes, move-in/move-out fees for condos
  • Title insurance is optional
  • Moving expenses
  • Homeowner insurance – you can get an online quote here
  • Heating, electricity, cable, internet, home phones, garbage, sewer, property taxes, municipal fees
  • Always have some savings for maintenance & repairs (for strata properties, major replacements or repairs may come in the forms of assessments in additional to the monthly strata fee)