Saving for a down payment is a huge milestone—but it’s not the only expense you’ll need to plan for when buying a home.
One of the biggest surprises for many first-time home buyers is discovering the hidden costs of buying a home. While these expenses aren’t exactly “hidden,” they’re often overlooked until you’re well into the purchase process.
The good news? A little planning goes a long way. Here’s what to keep in mind as you determine how much home you can afford.
1. Closing Costs
In addition to your down payment, you’ll need money set aside for closing costs. As a general guideline, I recommend budgeting 1.5%–4% of the purchase price, depending on the property and your situation.
Closing costs can include:
- Legal or notary fees
- Title registration
- Property adjustments (such as prepaid property taxes or strata fees)
- Home insurance
- GST (if you’re purchasing a new-build home)
- Appraisal fees, if required by your lender
Having these funds ready helps ensure there are no last-minute surprises.
2. Home Inspection
A home inspection isn’t always required, but it’s one of the smartest investments you can make.
A qualified inspector can identify potential issues with the home before you buy, giving you a better understanding of future maintenance or repair costs. Spending a few hundred dollars now could save you thousands down the road.
3. Property Transfer Tax
If you’re buying a home in some provinces, like British Columbia, you may need to pay Property Transfer Tax (PTT) when the purchase completes.
The amount depends on the purchase price, and while some first-time home buyers may qualify for exemptions or reductions, not everyone does. It’s important to know whether this applies to your purchase so you can budget accordingly.
4. Moving Expenses
Whether you’re hiring professional movers or convincing family and friends to help, moving isn’t free.
Don’t forget to budget for things like:
- Moving trucks or movers
- Packing supplies
- Utility hookups
- Mail forwarding
- Cleaning your old home
These costs can add up quickly, especially if you’re moving a larger household.
5. Immediate Home Purchases
It’s amazing how many little things you end up buying after moving in.
Some of the most common expenses include:
- Window coverings
- Lawn and garden equipment
- Basic tools
- New furniture
- Appliances (if they’re not included)
- Paint and small home improvements
Even if the home is move-in ready, most buyers spend more than expected during those first few months.
6. Ongoing Homeownership Costs
Your monthly mortgage payment is only one piece of the puzzle.
As a homeowner, you’ll also want to budget for:
- Property taxes
- Home insurance
- Utilities
- Strata fees (if applicable)
- Routine maintenance and repairs
A good rule of thumb is to set aside a little each month for unexpected repairs. Every home will eventually need something—from replacing a hot water tank to fixing a roof leak.
Plan Ahead and Buy with Confidence
Buying a home should be exciting—not stressful.
Understanding the home buying costs before you start shopping will help you make informed decisions and avoid unnecessary financial pressure after you move in.
One of my goals is to make sure my clients know what to expect every step of the way. From estimating your mortgage costs to explaining closing expenses and helping you build a realistic budget, I’m here to help make the process as smooth as possible.
If you’re thinking about buying a home and want to understand exactly what your budget looks like, including the costs beyond the down payment, I’d love to help. Reach out anytime, and let’s put together a plan that works for you.