How much will it cost to buy a home? Do you just need to put down a deposit before you get the keys?

Not so fast. ?? There are other costs to consider. 

Keep reading to find out what these other costs are. ??

1. Home Inspection Fee: $300 to $1000

A home inspection is a wise investment. The cost of getting one done could be small compared to potential repair costs after the sale is closed. 

2. Appraisal Fee: $275 to $500

The cost of an appraisal can differ depending on the type of dwelling you plan to purchase and the location. Some lenders will waive this fee but may still charge a financing fee—which will vary between lenders.

3. Legal Fees: $800 to $2000

A real estate lawyer will take care of all the paperwork, so you don’t have to. They’ll review all the legal documents, including the agreement of purchase and the mortgage. Lawyers will also ensure there aren’t any claims on the property.

4. Land Transfer Tax: 0.5% to 2.5% of property value

Many provinces use a multi-tiered system to calculate the amount of tax owed. On a $500,000 home in Ontario (but not Toronto), for example, 0.5% is paid on the first $55,000, 1% on the next $195,000, 1.5% on the next $150,000, and 2% on the amount above $400,000. That works out to $6,475.

5. Mortgage default insurance: 2.8% to 4% of the mortgage value

When you make a down payment of less than 20%, you’re required to get mortgage default insurance. This insurance protects the lender in the event the borrower is unable to make their mortgage payments. The premium you pay will depend on how large your down payment is.

6. Moving Costs

7. Home Insurance

It’s highly unlikely a lender will offer you a mortgage without proof of home insurance. This type of insurance covers damage related to your home. The cost of a home insurance policy will vary depending on your personal details, home features and the amount of coverage.

Its important to speak to a real estate agent to get a complete picture of what the hidden costs of purchasing a home can be. A proper budget will make the buying process seamless and easy for you!