12 closing costs to budget for before buying a home

As if the purchase price and mortgage interest aren’t substantial enough, there are lots of other costs that home buyers end up paying too. Here’s a list of the most common closing costs to keep in mind as you work through your home-buying budget. Not all will apply in every case.




  1. Appraisal Fee:  Your lender needs to determine the property value for mortgage purposes. It may or may not be the same as the purchase price.
  2. Survey Fee:  Indicates land boundaries and measurements, positions of major structures, and any easements or encroachments
  3. Property Tax Payments: Your lender may include property taxes in your mortgage payments.
  4. Legal Fees:  A lawyer should review the paperwork of every home purchase.  Make sure your lawyer's quote includes all related expenses and disbursements, not just legal fees.
  5. Mortgage Default Insurance:  Protects the lender in case you default on your loan. If your down payment is less than 20%, you’re required to pay an insurance premium, either at closing or added to your mortgage amount.
  6. Land Transfer Tax:  Some provinces and cities collect this tax whenever property changes hands. First time buyers are sometimes exempt.
  7. Home Inspection Fee:  A professional evaluation of the structures and systems of your home. While not mandatory, many buyers make an inspection a condition of their offer to purchase.
  8. GST/HST/PST:  Payable on some properties. Check with your Realtor.
  9. Title Insurance Fee:  Covers problems and costs that may arise due to title issues.
  10. Interest Adjustments:  You’ll have to pay interest on any gap between the closing date and the first payment date.
  11. Property Tax and Utility Adjustments:  You’ll have to reimburse the vendor for any prepaid property taxes or utility bills.
  12. Mortgage Life Insurance: An option that protects your family's financial security in the event that you or your spouse dies.

If you’d like to discuss how much each of these closing costs would be in your specific situation—and how to budget for them—please give us a call today!


Courtesy of:

Sarah Strauss-AMP 
The Place To Mortgage - A Mortgage Alliance Franchise
Direct: 587-316-6367
Toll Free: 1-888-474-8123 ext. 2
Fax: 1-403-398-0231


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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
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