Many first-time buyers are caught off guard by the additional costs that come with closing on a home. These are not “surprise” fees in the fine print. They are standard, expected, and completely manageable when you know what to plan for. The key is understanding them early so closing day feels calm, not chaotic.
Let’s start with closing costs. In Ontario, buyers should budget roughly 1.5 percent to 4 percent of the purchase price. The exact number depends on the property, location, and whether you are a first-time buyer.
These costs typically include legal fees, which cover the lawyer’s work to complete the transaction and register the home in your name. There is also land transfer tax, which can be a significant expense depending on the purchase price. First-time buyers may qualify for rebates, but it still needs to be accounted for upfront. Title insurance is another standard cost, protecting you against issues related to ownership or property title. It is not flashy, but it is essential.
Next, let’s talk about home inspections. This is one area where buyers sometimes try to save a few dollars, and it is rarely a good idea. A professional inspection gives you insight into the condition of the home and helps uncover potential issues before you commit. It is a relatively small investment that can save you thousands later or give you leverage during negotiations. Knowledge is power, especially when you are buying for the first time.
Moving expenses are another category that often gets underestimated. Whether you hire professional movers, rent a truck, or do a combination of both, costs add up quickly. Add packing supplies, time off work, and the general disruption of moving day, and it is worth budgeting realistically.
Utility hookups and account transfers are also part of the process. Setting up hydro, gas, water, internet, and any other services can involve connection fees or deposits, especially if this is your first home. These are not huge individually, but together they matter.
Property insurance is mandatory before you can close. Your lender will require proof of coverage, and your premium will vary based on the property type, location, and coverage level. This is not optional, and it needs to be in place well before closing day.
If you are buying a condo, there are a few additional considerations. Monthly maintenance fees are ongoing and should be factored into your monthly budget from day one. Depending on the building, these fees may cover amenities, building insurance, common area maintenance, and sometimes utilities. It is also important to review the status certificate to understand the building’s financial health and any upcoming expenses that could affect fees down the road.
Finally, it is smart to keep a small buffer for the unexpected. Minor repairs, furniture, window coverings, or changes you want to make right away have a way of appearing immediately after you get the keys. Planning for them helps you enjoy your new home instead of stressing about your bank balance.
Knowing these costs upfront puts you in control. It allows you to buy confidently, negotiate intelligently, and walk into closing day feeling prepared rather than pressured.
If you want a full breakdown of what to expect, including real numbers and practical examples, I have laid it all out in this week’s blog. Buying your first home is a big decision. Planning like a pro makes all the difference. Let’s connect, click here to book a 15-minute conversation, it will be worth the investment of your time. #OakvilleRealtor
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