Checklist of expenses to plan for when buying a property
Here is a practical guide designed to make your life easier and help you not forget anything when buying your property.
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Sell
September 12, 2022
Costs to consider when buying a property
Buying a property comes with various additional costs that are important to anticipate. Here's an overview of the main expenses to expect:
✔ Property valuation
Your banking institution may require an appraisal of your new property and charge you for this service, usually around $400.
✔ Property taxes
As the new owner, you will be responsible for paying municipal and school taxes. In addition, you will have to reimburse the seller for the portion already paid for the period following the transaction.
✔ Transfer tax (welcome tax)
This tax, due a few months after the deed of sale, is calculated based on the higher of the municipal assessment and the sale price. Your real estate broker can help you estimate this amount.
✔ Building inspection
A professional inspection is strongly recommended before purchase. Its cost typically ranges from $400 to $600.
new property
✔ Building inspection
A professional inspection is strongly recommended before purchase. Its cost typically ranges from $400 to $600.
✔ Home insurance
It is essential to take out home insurance that covers both your building and your belongings.
✔ Mortgage insurance
If your down payment is less than 20%, your loan must be insured by CMHC. This premium will be added to your mortgage and reimbursed in your monthly payments.
✔ Moving
Moving costs can vary, but expect to pay around $100 per hour to rent a truck with a crew of three movers.
✔ Notary fees
The notarial deed and the mortgage deed involve fees varying between $600 and $1,500, depending on the notary chosen.
✔ Connection and transfer of services
Some amenities like phone, internet, and cable may incur connection or transfer fees when you move in.
By planning for these costs in advance, you can avoid unpleasant surprises and ensure a smooth transition to your new property.
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Purchasing a property is often one of the largest investments you'll make in your life. It's therefore essential to understand the condition of the building before finalizing your purchase in order to anticipate the short, medium, and long-term expenses you'll face.
