What costs are involved in purchasing a home?

There are several costs that you'll be responsible for when buying a home or property. Here's a quick list for reference.

• Down payment. You'll need to have at least 5% down, maybe more, depending on your situation. To qualify for a conventional mortgage, you will need a down payment of 20% or more.
• Deposit that counts towards your down payment, that is required by the seller to show your commitment to buy their property.
• Home inspection fee. We highly recommend a professional home inspection, which will bring to light areas of repair or maintenance and to ensure the house is structurally sound. Ask for a written report for your future reference.
• Mortgage default insurance (including PST) if you are putting less than 20% down. These premiums can be paid in a lump sum at the beginning, or factored into your mortgage payments.
• Land Transfer Tax (LTT). Calculated as a percentage of the purchase price of the property, with the amount varying depending the province.
• Legal fees, disbursements and title insurance. These are costs that are associated with or are obtained through your solicitor. Fees for these services may vary significantly.
• Other costs may be involved in closing your mortgage, such as property insurance, tax or utility adjustments.
• Moving costs. Don't forget to include the cost of moving your belonging, or paying for cleaning or upgrading before you officially move in.