You may wish to spend less than the figure your lender extends so that you can avoid becoming house poor.  If you’re accustomed to eating out frequently, you may be in for a rude awakening, discovering very quickly that you can no longer afford the three times weekly outings.  Some advice?  Start scaling down your entertainment needs at least six months before you move.  This way, you can add back when you feel comfortable.

Costs Associated with Buying

  • Down Payment - After you have put down a deposit with the offer, you can  continue to save money toward increasing the down payment to further lower your monthly mortgage expense.  A down payment under 25% will mean your mortgage is considered a ‘high ratio loan, therefore subject to mortgage insurance fees.  A down payment above 25% is considered a ‘conventional mortgage’ which will not be subject to additional fees.
  • Survey - Ensure your REALTOR® has requested any existing survey the owner may have on hand.  Your lender will require the paperwork for financing purposes.  If a survey is not available, the cost can run close to $1,000.
  • Land Transfer Tax - the calculation is; .005 x the first $55,000 plus .01% from $55,000 to $250,000 (If you’re a first time buyer, likely you’re buying below the $250k mark)
  • Legal Fees - Call around, typical fees range from $400 - $600 plus GST. 
  • Disbursements - Title search fees, letter searches, registration costs, prorated adjustments (property taxes, fuel, holdbacks, special assessments/levies), miscellaneous (photocopies, fax transmissions, courier, long distance, travel costs).
  • Home Inspection - Call around, typical fees range from $400 - 600 dependent on house size. 
  • Moving Costs - Call around to get quotes from various moving companies.  Again, the price quoted will be dependent on square footage of your current living space.  If you’re doing the beer and pizza thing, check out a truck rental place.