We've broken down the major home buying costs to keep you informed upfront.

APPRAISAL (IF APPLICABLE)

An accredited appraiser will look at your home and determine if the price you have offered is what the home is worth. The appraiser will compare recent sales of similar properties to determine the estimated value of your home. The appraiser will provide a report to your lender that confirms the value. An appraisal costs approximately $300.  BOSI Financial will let you know if an appraisal is required or not.

An appraisal is typically needed when you put a 20% down payment or purchase a home without a realtor (private purchase).

DOWN PAYMENT

The minimum down payment required is 5%. Strong applicants may be able to borrow the initial 5% as well.

An initial deposit is required upfront when writing an offer. The amount is usually within $5,000 - $10,000; however, your realtor will advise the best amount. The initial deposit is refundable if you do not waive your conditions. Once you waive your conditions, your deposit is non-refundable.

You will be required to bring the balance of your down payment to your lawyer approximately 10-14 days before your possession date. Your lawyer will give you a figure representing exactly how much you will need to bring in. This will include your down payment and legal fees, less any initial deposits you may have already given.

HIGH RATIO INSURANCE

When you have less than 20% of the property’s value as a down payment, you must pay a mortgage insurance premium. The premium varies, so it is best to check with BOSI Financial on the exact figure. Most people will add this premium to their mortgage. You also have the option of paying this amount upfront.

HOME INSURANCE

You will be required to provide your lawyer with confirmation of home insurance if you purchase a single-family home. When purchasing a condo, your condo fees usually include fire insurance coverage, so you may not need to provide confirmation. You will need the lender information for your insurance company. This is who should be listed as the first loss payee on the policy.

Need an insurance broker? We have you covered! Please reach out to BOSI Financial, and we will put you in touch with one of our amazing agents!

HOME INSPECTION

On top of a financing condition, your realtor will recommend you have a home inspection completed.

Many people choose to have home inspections, although most of the time, it is optional. A home inspector will look through your home and provide you with their professional opinion on the home’s construction. The home inspector will advise of any maintenance required and let you know what kind of maintenance you can expect in the next few years. The approximate cost of a home inspection is $400 - $500.

INTEREST ADJUSTMENT

If you have chosen monthly mortgage payments, and your payment comes out on the first day of the month, you may have an interest adjustment. If the home’s purchase closes on May 29, for example, you will have to pay for three days of interest on your mortgage (May 29-31). If the purchase closes earlier in the month, you may have a larger interest adjustment. BOSI Financial or your lawyer will be able to assist with this estimate.

LEGAL FEES

A lawyer will be necessary for the home buying process. Your lawyer will prepare the mortgage documents, have you sign the documents, verify your identity, and will transfer the property into your name.

Your lawyer will provide you with a statement of all the relevant adjustments that have been made. This will outline in detail all of the costs incurred for your transaction. When you go to your lawyer’s office, they will ask you to bring the funds to close your purchase in the form of a draft or certified cheque. You can expect your legal fees to be $1300 - $1700 plus adjustments.

MOVING COSTS

There will be costs involved whether you hire professional movers or plan on doing it yourself.  Do not forget to include this expense in your budget.

PROPERTY TAX ADJUSTMENTS

Property taxes are calculated yearly from January 1st to December 31st but are billed in June in most cities. This means that if you move in prior to June 30th, you will end up with the tax bill for the entire year come June 30th, and your lawyer will ensure that the seller gives you credit for the number of days which they occupied the home and are therefore responsible for the taxes. If you move in after June 30, then the vendor has paid for the years taxes, which you are responsible for.  Find out an example on our Frequently Asked Questions page.

TITLE INSURANCE

Title insurance is sometimes used instead of a property survey and requested by your lender or lawyer. Title insurance protects the lender or you from title defects.  Your mortgage associate, lender, or lawyer will discuss title insurance with you if applicable to your transaction. The approximate cost is $200. You may also find out additional information here: Title Insurance

UTILITY CONNECTION CHARGES

Some utilities charge a move or connection fee. You will need to contact each utility provider to find out their charge. 

Do you have questions?

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