Expense Fees above and Beyond the Purchase Price

By facing your new financial responsibilities head-on, you may even manage to dodge some of them. Don’t forget to ask your REALTOR® about these and other costs when calculating the total cost of your new home.

Mortgage costs

  •  Mortgage company’s lawyer or notary
  •  Appraisal, if applicable
  •  Land title registration fee
  •  Mortgage loan insurance and application fee - if you get a high-ratio mortgage (where you pay less than a  20% down payment) you will have to buy the mortgage loan insurance from CMHC or a private company. For fee descriptions, please go to: www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm
Legal or notary fees and expenses
  • Title search
  • Investigating title
  • Drafting documents
  • Land title registration fee
  • Property transfer tax - 1% on the first $200, 000 and 2% on the balance.
  • Pre-paid property taxes or utility bills
  • You will need to reimburse the sellers for any prepayments.
  • When you buy a newly constructed home, you must pay the 12% HST.
However, new home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000.

Appraisal fee

Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender will cover this cost, if not, you are responsible. The fee ranges from $150 to $350.

Home inspection fee

A home inspection is a report on the condition of the home that can alert you to any protential issues such as moisture problems, pyrite, radon gas or urea-formaldehyde. The fee is about $500 to $700, depending on the size and complexity of the inspection.

Home insurance

To be safe, make the insurance effective on the earlier of either the completion date or the date that you pay the balance of the funds in trust.

Survey fee

Your lender may require an up-to-date survey of the property. If the seller does not provide the document, you will have to pay to have one done. The fee ranges form $150 to $350.

Moving fees

Maintenance and utility costs of your new home.