- Application fee
Some mortgage lenders charge a fee to process your application. Be sure to ask whether it can be waived.
- Appraisal fee
Your mortgage lender may need to have your new home appraised by a professional and they often pass the bill on to you. Sometimes your lender will waive this fee.
- Mortgage broker's fee
Your mortgage broker may charge a fee that's payable on your closing date. Ask your broker to avoid any surprises.
- Land survey fee
Lenders may require a survey of your property, even if it's an existing survey. Get your lawyer on the case.
- Home inspection fee
A home inspection is intended to help avoid surprises and protect yourself and your investment. It usually happens a little later in the process. Don't worry; we devoted an entire step to it.
- Home insurance
Mortgage lenders require you to carry fire and extended-coverage insurance because your home is the security deposit on the mortgage. Often you can have these payments added to your monthly mortgage payments. Shop around.
- Title insurance
While not mandatory, it protects you from fraud and potential errors surrounding the title to your land. Ask your lawyer for details.
- Legal fees
You'll pay your lawyer for their invaluable time and "disbursements" which are the costs involved in title searches, drawing up the title deed and preparing your mortgage.
- Adjustments
The previous owner may have paid property tax or utilities in advance and they will want to be credited for those payments. Ask your REALTOR® and lawyer what might come up on the closing date.
- Maintenance and utility costs
Remember, you'll now have more regular monthly payments in the form of property tax and utilities.
- Property transfer tax
The amount of this tax varies from province to province.
- GST/HST and new homes
GST/HST doesn't apply to resale homes but they will to new homes. If you intend to live in your new home (instead of renting it out), there is some relief. Consult your REALTOR® and/or lawyer for more information.
- REALTOR® commissions or fees
REALTOR® commissions or fees are subject to GST/HST.