Typical Expenses When Buying a Home

There are many costs that homebuyers will encounter when purchasing their first home.  Some of the expenses are related to buying a home and are one-time costs, while others are continuing costs.

The largest cost will be your down payment.  As a first time home buyer, this would likely represent approx. 5 - 10% of the purchase price. However, you should be prepared to pay additional costs as follows:

• Legal Fees & Disbursements - Lawyers/notaries’ fees vary according to the complexity of the real estate transaction. Strata and leasehold properties are more complex. Fees may vary from $700 for a simple transaction to $1500. GST and HST (if applicable)
• Property or Land Transfer Tax - 1% on the first $200,000 and 2% on the balance. First time buyers may be exempt from paying this tax if the purchase price in the Vancouver and Fraser Valley areas does not exceed $425,000. Adjustments (reimbursed to the vendor)
• Interest
• Property Taxes
• Utility Payments
• Strata or Condominium Fees
• Estoppel certificate fee
• Survey Fee
• Home Inspection Fee
• Water quality and quantity certificate
• Appraisal Fee
• Mortgage broker's fee (if applicable)
• Mortgage Loan Insurance Premium (if only 5% down)
• Mortgage Loan Insurance Application Fee (if only 5% down)
• Moving Expenses
• Renovations and repairs
• Furniture, paint, carpeting, window coverings, etc.
• Service and Utility Hook-up Fees
• Property/Condominium Insurance
• Mortgage Application Fee
• Deed and/or Mortgage Registration Fee

Once you have purchased your home, you will incur regular expenses on a monthly, quarterly or yearly basis. Some of these costs may be:

• Mortgage Payment
• Water and/or Sewer Payments
• Electricity and Gas Services
• Cable and Telephone Services
• Property Taxes
• Strata or Condo Fees
• Repair/maintenance Expenses
• Homeowner's Insurance