Buying Your First Home: Three Steps to Successful Mortgage Shopping

Step 3: Make the right decision for your needs

Other costs to consider

Closing costs

Closing costs are up-front costs that you must pay when you purchase a home, usually before you move in. Your lawyer can help explain these costs. They may include, but are not limited to:

• appraisal fee
• legal fees
• title insurance
• land registration fees (sometimes called a land transfer tax, deed registration fee, tariff or property purchase tax)
• prepaid property taxes and/or utility bills (to reimburse the vendor for prepaid costs)
• survey or Certificate of Location cost
• water tests
• septic tank tests (if applicable).

For more information on closing costs, visit the Canada Mortgage and Housing Corporation's website at www.cmhc.gc.ca, or call them toll-free at 1-800-668-2642.

Other up-front costs

Other up-front costs that you may have before moving in are:

• moving costs
• storage costs
• real estate costs for selling your home (if applicable)
• redirecting mail.

Costs you may have shortly after moving in can include:

• utility hook-up fees
• basic furniture and appliances
• painting and cleaning.

Ongoing cost related to owning a home

Ongoing costs related to owning and maintaining a home will probably be the largest part of your monthly budget once you've settled in. These can include:

• mortgage payments
• property taxes
• utilities
• property insurance
• renovation costs
• landscaping and maintenance
• repairs.

Planning ahead

For a list of costs that can apply before you buy and after you've moved in, see Tip Sheet Buying and Maintaining a Home: Planning Your Housing Budget.

Plan for these expenses by including them in your budget. For more information on making a budget, see FCAC's publication Making a Budget and Sticking to It.