The Cash You'll Need On Hand
Your lender will want to see 1% to 1.5% of the purchase price sitting in your account on top of your down payment. That's not money you'll spend — it's proof you have a cushion. But you will spend money on a long list of other things, so let's walk through what's coming.
Down Payment
About 10 days before you get the keys, your lawyer will tell you exactly how much to bring in. That's your full down payment minus any deposit you already handed over when you made the offer. You'll deliver it as a bank draft or certified cheque.
Legal Fees
You need a lawyer to prep the mortgage paperwork, get your signature, and transfer the title into your name. They'll also give you a statement showing every dollar that changed hands — adjustments, credits, the works.
Expect to pay around $1,400 to $1,600, plus whatever's left of your down payment.
Appraisal Fees
If you're putting down less than 20%, buying a private sale, or looking at an acreage, the lender will want an appraisal. An accredited appraiser visits the property, compares it to recent sales nearby, and confirms the price makes sense.
Cost runs $300 to $750 depending on the size and value. Your mortgage broker will tell you if it's needed and order it for you.
Property Tax Adjustment
Property taxes cover January 1 to December 31 but get billed mid-year on June 30. If you move in before that date, you'll get the bill for the full year — so your lawyer makes sure the seller credits you for the days they lived there. If you move in after June 30, the seller already paid, and you'll owe them for your portion. It all gets sorted at the lawyer's office.
Home or Fire Insurance
Your lawyer needs proof of fire insurance before closing. Your insurance agent usually handles the paperwork, but make sure you line one up early. If you're buying a condo, your condo fees typically include fire coverage — you just need a condo insurance policy, which is usually cheaper than house insurance.
Give your insurer the lender's name so they can be listed as the first loss payee.
Title Insurance
Title insurance protects you and the lender from hidden title problems or fraud. It's often used instead of a property survey, and most lenders will ask for it. Cost ranges from $179 to $309 (sometimes $99 plus a $210 admin fee). Ask your lawyer about adding a homeowner policy at closing.
Mortgage Default Insurance Premium
When your down payment is less than 20%, you pay a one-time insurance premium that gets added to your mortgage. The rate depends on how much you put down. There are three insurers in Canada: Sagen, CMHC, and Canada Guaranty.
Here's what the premium costs as a percentage of your mortgage amount:
5% to 9.99% down: 4% of the mortgage (4.5% if the down payment is borrowed)
10% to 14.99% down: 3.1% of the mortgage (5.85% for self-employed stated income)
15% to 19.99% down: 2.8% of the mortgage (3.75% for self-employed stated income)
Home Inspection (Optional but Smart)
Most people get one, even though it's not required. A home inspector walks through the property and tells you what's solid, what needs fixing now, and what you'll likely need to maintain in the next few years. It's a professional second opinion on the biggest purchase you'll make.
Cost is around $450 to $650.
Utility Connection Charges
Some utilities charge a fee to start or transfer service. Call each provider to find out what they charge.
Moving Costs
Whether you hire movers or bribe friends with pizza, there's a cost. Don't forget to budget for it.
Land Transfer Tax (B.C. Only)
If you're buying in British Columbia, you or your lawyer must file a property transfer tax return and pay the tax when the property is registered at the Land Title Office — unless you qualify for an exemption. This doesn't apply in Alberta.
Mortgage Protection Insurance (Optional but Worth Considering)
You're taking on new debt, so it's worth thinking about what happens if you get sick, injured, or worse. Life and disability insurance can protect you and your family from losing the home if something unexpected happens. Ask your broker for a quote once your offer is accepted.
What to Do Next
Add up these costs early so you know what you're working with. If the numbers feel tight, talk to your mortgage broker before you make an offer — they can help you figure out what's realistic and what you can plan for.
