Video: Home Buying Costs - A Complete List

Buyer Cost Breakdown: Understanding the True Costs of Homeownership

When embarking on the exciting journey of buying a home, one of the most important steps is understanding the full scope of costs involved. While your purchase price will be the largest expense, it’s crucial to prepare for several additional costs that come with buying a home. Here’s a breakdown of everything you need to know to avoid financial surprises and start your journey with confidence.

1. Purchase Price

The most obvious and significant cost is the purchase price of your home. This is typically funded by a combination of:

Down Payment: The portion you pay upfront.
Mortgage: The loan you secure for the remainder.

Proper planning and consultation with a mortgage specialist will ensure you’re clear on what you can afford.

Do you have questions about mortgages, deposits, and down payments? Here are a few more videos you might find helpful:

2. Land Transfer Tax (LTT)

In Ontario, every homebuyer pays a Provincial Land Transfer Tax. If you’re purchasing within Toronto, you’ll also pay an additional Municipal Land Transfer Tax.

Cost: 2.5% – 4% of the purchase price for homes under $2,000,000.
Discounts: First-time buyers in Toronto receive a rebate of up to $8,475.
Use online LTT calculators to estimate your exact costs.

Keep learning more about land transfer taxes with this video next!

3. Legal Fees

You’ll need a real estate lawyer to handle the legal aspects of your transaction. Consult with your Real Estate Professional for any recommendations!

Cost Range: Approximately $1,500 – $3,000.
This covers tasks like title searches, document preparation, and registration.

When buying a home, you’ll have a team behind you helping with every step! Get to know the various professionals you’ll work with here:

4. Title Insurance

Title insurance is a one-time fee that protects you and your lender against title-related issues.

Mandatory for mortgages but optional for cash purchases (highly recommended!).
Cost Range: $400 – $2,000 for homes under $2,000,000.

5. Home Inspection (Optional)

A home inspection provides peace of mind by identifying potential issues before you buy.

Cost Range: $300 – $1,000.
The need for an inspection depends on the property and market conditions.

6. Appraisal Fee (May Apply)

If you’re securing a mortgage, your lender may require a property appraisal to confirm its value.

Cost Range: A few hundred dollars.
(Some lenders cover this fee, so check with your provider.)

7. Mortgage Default Insurance

If your down payment is less than 20% of the purchase price, mortgage default insurance is required.

Cost: 2.8% – 4% of the mortgage amount (added to your mortgage).
Additional Cost: In Ontario, you’ll need to pay 8% PST on the premium upfront at closing.

Still have questions about buying a home? Here are a few more posts to help you out:

8. Closing Adjustments

These reimbursements cover prepaid expenses by the seller that extend beyond your closing date, such as:

Property taxes.
Condo maintenance fees (if applicable).
Rental equipment (e.g., hot water tanks) (if applicable).

9. Moving Costs

Don’t forget to budget for the actual move and any new furniture or decor for your home. The cost range varies based on moving distance and household size:

Local Move (Same City/Region)

Apartment/Small Home: $700 – $1,500
Medium Home (2–3 Bedrooms): $1,500 – $3,800
Large Home (4+ Bedrooms): $3,800+

Long-Distance Move (Across Provinces/States)

Small Home/Apartment: $2,000 – $5,000
Medium Home (2–3 Bedrooms): $5,000 – $8,000
Large Home (4+ Bedrooms): $8,000 – $15,000+

Additional Costs to Consider

Packing Services: $300 – $1,500+
Moving Supplies: $75 – $300
Storage Fees: $150 – $500/month
Truck/Travel Fee: $100 – $300 (for local moves)
Insurance & Liability Coverage: Varies by provider

Why Proper Planning Matters

Understanding these costs ahead of time allows you to properly budget and avoid unexpected financial stress. With everything accounted for, you’ll be well-prepared to navigate the exciting process of buying your dream home.

Our team equips you with all the knowledge you need to budget confidently and begin your home-buying journey stress-free! Get in touch today by filling out the form on this page, calling 416-909-9235, or emailing info@yaelandco.com.