Buying a home is often the biggest investment of a lifetime. Yet many buyers focus only on the purchase price and overlook the additional costs that come with acquiring a property. These mandatory or strongly recommended expenses can amount to several thousand dollars and should be planned for in your overall budget.
Beyond the amount you offer for the home or condo, here are the main expenses every buyer should expect:
This one-time fee is required by the municipality after purchase, calculated using a progressive scale based on either the purchase price or the municipal evaluation — whichever is higher. It can amount to several thousand dollars, especially in larger cities.
In Quebec, hiring a notary is mandatory to formalize the transaction, draft the deed of sale, and register the mortgage. These fees generally range between $1,000 and $2,500.
Although not mandatory, an inspection is strongly recommended to uncover any hidden defects. The cost varies between $400 and $800, depending on the type of property.
At closing, you may have to reimburse the seller for a portion of the municipal or school taxes already paid for the year. This can amount to several hundred dollars.
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Home insurance: Required by mortgage lenders to cover the property against damage.
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Mortgage loan insurance: If your down payment is less than 20%, you’ll also need to pay a premium (e.g., CMHC), which is usually added to your mortgage
Whether you hire professionals or rent a truck and do it yourself, moving always comes with costs: fuel, equipment, labor, etc.
Moving into a new home often comes with new needs: a refrigerator, washer-dryer, bed, sofa… These costs can add up quickly.
Overlooking these costs can lead to financial stress at the time of purchase or shortly afterward. Good planning allows you to:
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Avoid unpleasant surprises
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Preserve your emergency fund
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Limit additional debt
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Enjoy your new home with peace of mind
When getting pre-approved for a mortgage, avoid aiming for the maximum amount. Leave some room in your budget to cover these additional costs.
The purchase price is only the tip of the iceberg. Between the welcome tax, notary fees, inspection, insurance, and furniture, the true cost of buying a home is much higher than the number written on your offer. Including these costs in your financial planning is a sign of prudence — and the foundation for a successful transition to homeownership.