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Purchasing a home: 11 fees to keep in mind besides your mortgage

I recently came across this list of fees that typically apply when purchasing a home:

Appraisal fees

Your financial institution may ask for an evaluation of the property’s market value.  This happens when the cost is steep or the property contains various risk factors. Requesting an appraisal is a means of protection: either to ensure that payments won’t be above your means, or to verify that the property is truly worth what you’re about to pay. You’ll therefore need to hire an appraiser to produce the necessary documents.

Inspection fees

Hiring a building inspector to check for hidden defects in pre-existing houses is crucial. This will help you avoid bad surprises that could cost you a lot, and you’ll have peace of mind knowing that everything is as it should be.

Legal fees

In Canada, any mortgage deed requires the services of a notary for the province of Quebec and a lawyer for all other provinces. The cost of this transaction varies depending on a number of criteria. The type of building, the number of buyers, and the number of separate accommodations, to name only a few, are some of the factors that could impact the rate. The best way to gauge fees is to directly contact a notary or a lawyer, who will evaluate your case taking into account all of your future residence’s parameters.


As a home owner, here are some important taxes you’ll need to keep in mind:

  • HST, in the case of buying a new home,
  • CMHC applicable tax, if your down payment falls short of the required percentage
  • Municipal property/School tax – These taxes vary per municipality and according to property value

When preparing your budget, note that municipal and school taxes are recurring and need to be paid year after year, whereas the others only apply once, when you move


If your down payment is smaller than 20% of the cost of your home, you’ll need to take out mort­ gage insurance. This insurance does not cover your assets, but rather your mortgage payments. Your financial institution may request that you take out mortgage insurance even if your down payment is bigger than 20% of your property value.

Electricity, television, and Internet connection fees

Electricity connection fees are often forgotten by first-time buyers. as well as fees related to opening new Internet /home phone/TV accounts Contact your suppliers to check service availabi­lity in your new neighbourhood. If you’re moving into a new development, you may need to pay additional fees to connect your neighbourhood to various networks


Keep some money aside for renovations. Take time to walk through your future dwelling to pinpoint improvements and repairs you’d like to take on

Furniture and appliances

Your current furniture and appliances might not fit in your new home, or you might simply need to buy more to accommodate a larger space if you’ve upsized.

Moving costs

Whether you hire professional movers or decide to do everything yourself, you’ll certainly need to take on a few moving-related expenses. Don’t forget to include them in your budget.

Condominium Fees

If you’re buying a condo, you’ll need to pay monthly cohabitation fees, which include communal ex­penses such as interior and exterior maintenance. snow removal, etc. In older buildings, there may be special assessments applied to your unit which are one-time fees to cover anger repair/maintenance items in the building.


Since it’s impossible to plan for everything, we recommend keeping some money aside for em­ergencies. One rule of thumb is to set aside at least 2 or 3% of your property value, in case anything unexpected happens.

Source: National Bank