Now let's take a closer look at what goes into these additional costs:

Costs you always have to pay

• Adjustment costs. (It varies, but budget for $1000–$2000) You’ll need to reimburse the previous owner for any utility payments or property taxes that have been paid beyond the closing date.
  
  
• Legal fees. ($1000–$2000) Lawyers will need to do paperwork. Make sure you know exactly what they’re charging you for. Keep in mind that this is an approximation—always chat with a lawyer to get the most up-to-date cost.
  
  
• Title insurance. ($300 or so) Your mortgage provider will require this. But this is good—it may save you the higher costs of a property survey.
  
  
• Property insurance. ($700 – $1,000 at closing, and then annually) Your mortgage provider usually requires you to have insurance to cover the replacement value of your home and its contents.
  
  
• Moving expenses. (It varies a lot) It could be anything from beer and pizza for your friends, to a well-insured international moving company. Figure out what your expenses will be and factor them in.
  
  
• Utility service charges. ($35 – $50 per utility) Check with your utility providers to find out what your exact moving fees will be.
  
  

If you put less than 20% down

• Mortgage insurance. (Between 1.25 and 3.15% of your mortgage amount) If you have a down payment of less than 20% of your mortgage amount, you need to insure your mortgage. This cost can be paid up front or added to your mortgage.

Costs you may have to pay

• Property appraisal. ($300–$500) Sometimes, your mortgage provider will ask you to have the property you’re purchasing appraised at your expense. It costs more if your house is very large, very unique, or very rural.
  
  
• Property survey. ($1,000–$2,000) Your mortgage provider may want an up-to-date survey. If the seller doesn’t already have one, you’ll have to pay for it. But before you do that, see if your lender will accept title insurance instead—many do.
  
  
• Home inspection fee. ($350–$600) It’s a good idea to get your new home inspected before you purchase. This can save you from very costly surprises after you move in.
  
  
• Estoppel certificate fee. (up to $100) If you’re buying a condominium or strata unit, an estoppel certificate lets you know if the previous owner has outstanding payments and the amount of interest owing on unpaid condominium contributions.

If you’re buying a brand new home (vs. one that’s just new to you)

• Goods & Services Tax (GST). (5% of purchase price) If you’re buying a new home, you will be charged GST. This is usually included in the contract price. But if the new home you’re purchasing is less than $450,000 and will be your primary residence, you may qualify for a partial rebate. Check out the Revenue Canada website or consult with a real estate accountant for more information.
  
  
• New Home Warranty. ($2,000) In Alberta, this is mandatory if you’re building a new home.

Many of the higher costs can be rolled into your mortgage, but keep this in mind when you decide how much of a mortgage you can afford. Your lender will be able to guide you through this process. Understanding the real costs of buying a house will help you find the home that’s just right for you—one that you love, and can afford.

*Based on a 25-year amortization. ​​​