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Additional Costs of Buying a Home

Prepare for these unexpected costs when building your budget.

Many first time homebuyers are often shocked when they see the total amount of their home purchase, with all of the additional costs, on closing day. Here’s a list of some of the “hidden” costs you should expect to pay. 

Land Survey

Although most lenders may accept the existing property survey, depending on when it was last conducted, it may need to be done again.

Home Inspection

Most lenders will require a home inspection, but even if they don’t, it’s worth the peace of mind to get one done.


If you are applying for a high-ratio Canadian mortgage rate (with a down payment of less than 20% of the purchase price), your lender will require you to purchase mortgage default insurance. While mortgage default insurance provides protection for the lender, you may want to consider the mortgage rate life insurance for your own protection.

Legal Fees

Your lawyer will do a title search, register and prepare your low mortgage rate, and draw up the title deed.

Land Transfer

Land transfer tax must be paid by every person who purchases property in Canada. 

HST (harmonized sales tax)

Implemented in July of 2010 in Ontario and British Columbia, HST (Harmonized Sales Tax) is applied to the purchase price of all new homes. 


Your lender will only lend you a percentage of either the appraised market value of your home, or the home’s purchase price – often, the lesser of the two.

Not sure how these additional costs will impact your home purchase? A mortgage broker can help. Contact a mortgage specialist today.