depenses-avant-achat

Seven expenses to plan for when buying property

October 21, 2019 Tags: , , , , ,

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Thinking about becoming a homeowner? Remember: the purchase price isn’t the only expense to consider when buying property. There are also transaction costs. Buying a house, condo, or revenue property involves a list of extra costs that you need to budget for. Here are a few of the main things to put in the ledger when you’re considering making the leap. 

Building inspection

You will certainly want to get your new house or condo inspected before you buy it. This will run you somewhere between $450 and $500. If you’re having trouble finding an inspector, ask your real estate agent to recommend one or contact the Quebec Association of Building Inspectors.

Legal fees

All real estate transactions have to be notarized and filed with the Land Registry Office. Different notaries may charge significantly different amounts depending on the complexity of the transaction and the services involved. Real estate agents can provide lists of notaries they trust and work with regularly.

Mortgage insurance premiums

You have to get mortgage insurance if your down payment is less than 20% of the value of the property and under certain other conditions. Premiums depend on the size of your down payment—the higher it is, the lower your premiums will be.

Moving costs

Professional movers generally charge $80 to $100 an hour. Prices are generally a little higher in the period around July 1.

Transfer duties

Transfer duties, commonly known as the “welcome tax,” are required by the municipality where a property is located when the property changes hands. They are payable by the purchaser within 30 days of the deed being notarized. The amount is calculated in value brackets based on the cost of purchase, the sale price, and the fair market value of the property as shown in the municipal assessment roll.

Home insurance premiums

Home insurance is mandatory and required by lending institutions. It covers you for future damage to your home due to things like floods, theft, fire, and so forth. Many factors influence your premiums—the neighbourhood, heating system, and other aspects of your property.

Other expenses and contingencies

Other expenses can be associated with purchasing property: a construction permit for any renovations you want to do, furniture and appliances, utility connections (Internet, TV, electricity, etc.).

If you’re buying a condo, you’ll have condo fees and special assessments in the future. And remember to budget for contingencies. This should be somewhere between 2% and 3% of the cost of purchase.


In a nutshell, buying a home will have a huge impact on your future financial situation. That means you need to be prepared, including a detailed budget that includes all the extra expenses that come with home ownership as well as enough wiggle room to deal with any unforeseen circumstances that may arise.

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