Buying a home is a thrilling milestone, but hidden costs can derail your financial planning. Knowing what to expect ensures you’re financially ready to make your purchase.
1. Closing Costs
Average Range: 1.5%–4% of the home’s purchase price.
- Land Transfer Tax:
In Ontario, this is calculated on a sliding scale. For example, a $500,000 home incurs a land transfer tax of $6,475. If buying in Toronto, add a municipal land transfer tax. - Legal Fees:
Real estate lawyers handle title searches, mortgage registrations, and other legal documents. Fees range from $800–$1,500. - Title Insurance:
Protects against property fraud and defects in title. Expect to pay $250–$500.
2. Pre-Purchase Costs
- Home Inspection:
Inspectors evaluate the structural and mechanical integrity of the home. Costs average $300–$600 but could save you thousands in repair surprises. - Appraisal Fees:
Lenders often require an appraisal to confirm the home’s value. This typically costs $300–$500.
3. Moving Expenses
- Local Move: $500–$3,000 depending on services.
- Long-Distance Move: $5,000+ depending on distance and size.
4. Post-Purchase Costs
- Maintenance and Repairs:
Budget 1%–3% of your home’s value annually for maintenance. For a $500,000 home, that’s $5,000–$15,000 yearly. - Utility Hookups:
Activation fees for hydro, gas, and water services range from $100–$500.
How a Mortgage Agent Helps
A mortgage agent can outline these costs during pre-approval, helping you create a comprehensive budget. They’ll also advise on lenders who might roll closing costs into your mortgage.
The Mortgage Path With Damian 
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