Buying a property in Montreal involves more than just your down payment and mortgage. Once the transaction is complete, new homeowners should be prepared for several additional expenses, including notary fees, transfer duties (commonly known as the “welcome tax”), moving costs, home insurance, utilities, and ongoing property maintenance. Planning for these costs in advance will help you enjoy your new home without any unexpected surprises.

The Main Costs to Budget for After Buying

In addition to your down payment, here are some of the main expenses to consider:

• Notary fees: $1,400 to $2,000
• Transfer duties (“welcome tax”)
• Moving costs: $500 to $3,000 or more
• Home insurance: $40 to $150 per month (depending on the property)
• Utility hookups (Internet, phone, etc.)
• Furniture and appliances, if needed
• Maintenance and repairs
• An emergency fund for unexpected expenses

Transaction-Related Costs

Even before you take possession of your new property, there are several costs you’ll need to pay.

Whether you’re purchasing a condo in Plateau-Mont-Royal, a home in Town of Mount Royal, or a multi-unit property in Outremont, notary fees are an essential part of the process. They cover services such as preparing legal documents, verifying the property’s title, and completing the signing of the deed of sale. Depending on the complexity of the transaction, these fees typically range between $1,400 and $2,000.

You’ll also need to budget for land transfer duties, commonly referred to in Quebec as the “welcome tax.” Although eligible first-time homebuyers may now qualify for a partial tax credit offered by the Quebec government, this expense should still be included in your financial planning.

These are often the first costs buyers think about, but they’re only part of the overall expenses associated with purchasing a property.

Moving Expenses and Initial Costs

Moving day also comes with its own set of expenses.

Depending on the distance, the amount of belongings being transported, and the time of year, professional moving services generally cost between $500 and $3,000 or more.

Additional expenses may include:

• Packing boxes and moving supplies
• Cleaning products
• Internet installation
• Address changes
• New furniture or appliances

While each of these costs may seem relatively small on its own, they can quickly add up to a much larger amount than many buyers anticipate.

Ongoing Annual Expenses

Once you’ve settled into your new home, homeownership also comes with recurring costs.

Some of the most common include:

• Home insurance
• Municipal property taxes
• School taxes
• Electricity
• Seasonal maintenance
• Condo fees (if applicable)

Including these recurring expenses in your annual budget can help you avoid financial surprises.

Georges Bardagi’s 3% Rule

Georges Bardagi, President and Chartered Real Estate Broker at Bardagi – RE/MAX du Cartier GB, often shares what he calls the 3% Rule.

His advice is simple: set aside a budget equal to approximately 3% of your property’s purchase price during the first year of ownership.

Why? Because once you’ve moved in, unexpected expenses often arise, including painting, replacing appliances, landscaping, minor renovations, or unforeseen repairs.

For example, if you purchase a property for $700,000, the recommended reserve would be approximately $21,000. This doesn’t mean you’ll necessarily spend that amount, but having this financial cushion provides peace of mind and helps you navigate your first year as a homeowner with greater confidence.

According to Georges Bardagi, this approach helps ensure that unexpected expenses don’t derail your real estate investment.

Plan Ahead and Enjoy Your New Property

Buying a property is a significant investment, but careful financial planning makes the transition much smoother.

By budgeting for transaction costs, moving expenses, ongoing ownership costs, and unexpected repairs, new homeowners are better prepared to fully enjoy their new property.

At Bardagi – RE/MAX du Cartier GB, we guide our clients through every stage of their real estate journey. Beyond helping them find the right property, we ensure buyers understand all the costs associated with homeownership so they can move forward with confidence.

Key Takeaways

1. What are the main costs after buying a property?

Notary fees, land transfer duties (welcome tax), moving expenses, home insurance, utilities, and ongoing maintenance costs.

2. How much are notary fees?

Typically between $1,400 and $2,000.

3. Is the welcome tax due immediately?

No. It is generally billed by the municipality within the months following the closing of the transaction.

4. How much does a move cost?

Typically between $500 and $3,000, depending on the distance, the volume being moved, and the time of year.

5. What is the 3% Rule?

It’s a guideline shared by Georges Bardagi recommending that homeowners set aside approximately 3% of their property’s value to cover first-year expenses and unexpected costs.

6. Should I have an emergency fund?

Yes. The first few months of homeownership often come with unexpected expenses, making an emergency fund highly recommended.

7. Are the costs the same for a condo and a house?

No. Condos typically include monthly condo fees, while single-family homes generally require more exterior maintenance and upkeep.