My Mortgage Blog

Early in the home buying process, you need to consider all the costs associated with your mortgage, including closing costs. Here are some of the costs you should consider:


It is advisable to make an offer on a home conditional on the outcome of an independent home inspection. A home inspector looks for items that could affect the price and desirability of a home, such as outdated wiring, shabby roofing, an old furnace or cracks in the foundation. Approximate cost is $400 to $700.


  • Mortgage default insurance: A mandatory expense on high ratio mortgages. This charge is added to the amount of the mortgage. Costs depends on a number of variable, which I will explain.
  • Title insurance: Protects you from any unpleasant revelations about your property's history. This insurance is obtained through your lawyer and is approximately $200 to 250.
  • Home insurance: You must have fire insurance in effect when you take possession of your home. This cost will vary depending on your insurer.


  • Deposit: Due when your offer to purchase is accepted.  Essentially, a deposit is a gesture of good faith between the buyer and the seller. A minimum deposit is approximately 5%-10% of the purchase price. 
  • Appraisal: An appraisal may be required to determine the market value of the property you are buying. Appraisal costs vary from $250 and higher, depending on the size of the property and its location. 
  • Legal costs and disbursements: A lawyer or notary is vital to any home deal. They are drafting the title deed, preparing the mortgage documents, mediating with the seller's attorney, and transferring the land title and much more. Approximate cost $800 to $2,000.
  • Taxes: GST is payable only on new build homes but is often absorbed by the builder. Be sure to clarify who is handling this.
  • Land Transfer Tax: Most provinces charge a land transfer tax, payable by the purchaser, and the amount varies from province to province. This tax is based on the purchase price. In some provinces, first time home buyers who purchase a new home will receive a refund.

And don't forget your moving, mail transfer and utility setup costs!

All of the above costs vary dependent on the property you are purchasing. I can explain each of these costs in greater detail so there are no surprises at closing time... 

Contact me today if you have any questions.