Setting a budget and getting pre-approval

Determine what you can afford

Purchasing a home involves both one-time costs and on-going expenses. The largest one-time cost that you will have is the down payment. It usually represents between 5-25% of the total price of the property. Refer to the mortgage section for more information.

In addition to the purchase price, there are a number of other expenses that you may be responsible for. Typical one-time expenses include:

• Mortgage application and appraisal fee (paid at the time of application)
• Home inspection (paid at time of inspection)
• Legal fees (paid at time of closing)
• Legal disbursements (paid at time of closing)
• Property survey (paid at time of closing)
• Land transfer tax (paid at time of closing).
  • Calculate the land transfer tax on a Toronto Property
  • Calculate the land transfer tax on a property outside of Toronto
• Adjustments for fuel, taxes, etc. (paid at time of closing)
• Mortgage insurance (paid at time of closing)
• Home and Property insurance (paid at time of closing and on-going)
• Moving expenses (paid at time of move)

Typical on-going costs incurred by home owners are mortgage payments, maintenance, insurance, condo fees, property taxes and utilities.

Obtain a pre-approved mortgage

Having a pre-approved mortgage will give you the confidence knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while you look for your new home. Refer to the mortgage section for more information.