What Costs Can You Expect When Buying a Home?


What are the Typical Costs involved in a Home Purchase: 


It really just begins with the actual purchase price of your home, so we want you to be prepared for the additional costs that come along with the home buying process.


Here are some of the common items you can expect(some are optional & some may be required by your lawyer or lender): 



Home Inspection:

Once you find a property, you need to know everything you can about the home — good and bad. Home & Sewer Line Inspections can uncover issues that could impact the purchase price, or slow or stall the sale. These reports are optional, but can help you confirm that this is the home for you and also help prepare for possible projects to be addressed in the future. 


A home inspector checks that all major elements in the home are in good working order. A home inspection helps you make a more informed decision about buying a home but is not designed to be a renegotiation necessarily. 

If a roof needs repairs, you want to know about it right away and if the ducts require cleaning, a normal maintenance item, you want to know about that too!


Average cost is $400.00 plus taxes. 


Sewer Line inspection:

Optional but we recommend it in most cases, and especially in more established neighbourhoods where sewer lines may be older & where mature trees are the norm, and tree roots may cause blockages. Sewer line issues can be costly to deal with so having this information is valuable prior to completing a home purchase. 

Average cost is approximately $125.00 plus taxes. 



Property appraisal:

When you apply for a mortgage, your lender may order an 

Appraisal to get an estimate of the property's value. You may need one for financing purposes, so factor this into your closing costs. Ask your lender/broker fro more information about the costs involved & if they think it will be required for your purchase. 


Title insurance:

Your lawyer may encourage you to buy an owner's title insurance policy. In some cases, your lender may require a lender's title insurance policy, which is generally at your expense. These title insurance policies protect you and the lender from title fraud, municipal work orders, zoning violations and other property defects. The lawyer usually adds title insurance costs to your legal bill. 

The average cost is between $185-250. 


Property insurance:

Property insurance protects you in case of fire and certain other disasters. Your lender requires you arrange property insurance for your home's replacement value. The insurance must be in place before your lender advances the mortgage funds. Cost will depend on your coverage. 


Legal fees and disbursements:

These are the final expenses you need to plan for prior to possession of your new home! 


After removal of conditions, your lawyer will send you a transaction report which includes copies of all relevant legal papers.


  • Disbursements include any expenses your lawyer had to pay for work on your behalf. Legal Fees vary from law firm to law firm but average between $1500-1700 including applicable taxes. 


  • Adjustments will also be made for property taxes and pro-rated rental charges on water heaters etc, where applicable.


  • In addition, your total legal bill will also include land title transfer fees which are dependent on the purchase price of your home, but is equal to .03 cents/thousand dollars of purchase price.  


So, for example if you are purchasing a $500,000 property your total legal costs, plus title transfer fees will be approximately:  


$1,500.00-1,700 Legal Fees 

$1,500.00 Land Title Transfer 

$ ??         Additional Adjustments for Property Taxes etc. 



Having this information can help you to be prepared for all of the costs that come along with the purchase process, beyond just the purchase price of your new home, so hope there are no surprises along the way!


Happy Home Shopping! 


~ Karin & Jen 

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