Will I need to pay any additional costs?
While your downpayment and mortgage will cover the purchase price of your home, it's wise to consider the other expenses involved in buying a home.
You'll pay some costs at the beginning of the home-buying process and others, known as closing costs or disbursements, when your home purchase is finalized.
Hidden costs that could add up when you buy your first home
Click each of the costs below to find out more about them.
Appraisal fee
$150 - $200
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This is the fee for determining the property lending value for mortgage purposes. This value may or may not be the same as the purchase price of the home.
Home inspection fees (may not apply if you are purchasing a new home)
$300
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The home inspector evaluates the structures and systems that make up your home and provides you with a written report. While not mandatory, many people make a professional home inspection a condition of their Offer to Purchase.
Property survey
$750 - $1,000
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A survey indicates the boundaries and measurements of the land and positions of major structures, and any registered or visible easements (such as a driveway) or encroachments (such as a neighbour's fence) on the property.
Land transfer tax (if applicable)
$2,000
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Levied in certain provinces whenever a property changes hands. In some cases, first time homebuyers may be exempt from a portion of this cost.
Legal fees and related expenses
$1,300 - $2,500
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These fees vary by province. Ensure your lawyer's quote includes all related expenses, not just legal fees. Make sure your interests are protected by discussing your Offer to Purchase with your lawyer or notary prior to signing.
GST (sometimes included in sale price)
5% (GST)
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Some properties are GST and/or PST sales tax exempt and some are not. Generally, GST is charged on new homes, but not on resale properties. Always ask before signing an Offer.
Title insurance
$250
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Title insurance is optional and covers problems that may arise due to survey irregularities, power of sale issues, undischarged mortgages and other issues relating to the property's previous owners.
Insurance costs for high-ratio mortgages
Variable
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Approximately 2.75% of the principal plus applicable fees (may be subject to provincial sales tax which cannot be added to mortgage amount)
If your downpayment is less than 20% of the purchase price of your home, you must pay a one-time insurance premium of up to 2.75% of your mortgage amount. (Ask a CIBC advisor how this premium can be added to the principal portion of your mortgage.)
Interest adjustments
$100 - $1,000
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You will need to pay interest on any gap between the closing date of the purchase and the first payment date of the mortgage. You can avoid an interest adjustment by arranging to make your first mortgage payment exactly one payment period after your closing date.
Prepaid property tax and utility adjustments
$400 - $500
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You will be required to reimburse the vendor for any prepaid property taxes or utility bills.
Home insurance
$450/year
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Protection for your home and contents.
Mortgage life insurance
Variable
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Costs vary but can be conveniently included in your regular mortgage payment
Mortgage life insurance is optional and provides peace of mind. It protects your family's financial security by paying off all or a portion of your mortgage (up to a maximum of $500,000) in the event of the premature death of you or your spouse.
Don't forget to consider general expenses such as moving, upgrades, and home decorating costs as well.
