The Real Cost of Buying, Selling or Staying Put
The home cost guide · 01
What does a home really cost?
A home has more than one price. Here are the costs to know if you buy, stay, or sell.
The price on a home listing is just one number. Other costs can change how much money you need, how much you spend each month, or how much you keep when you sell.
The list price is not the full bill.
Most buyers plan for a down payment. But other bills come with buying a home. You need cash for those, too.
Money due at closing
- Legal fees
- Land transfer tax, where it applies
- Title insurance and other closing fees
- Money to cover prepaid bills or taxes
Money you may need after
- Moving costs
- Small fixes or repairs
- New furniture or tools
- A fund for surprise bills
A useful planning range
The Canada Mortgage and Housing Corporation says buyers should plan for closing costs in this range of the home's price. These costs are on top of the down payment.
Your real costs can be different. Ask for a cost list for the home you want.
Example: For a $700,000 home, 1.5% to 4% works out to about $10,500 to $28,000 for closing costs. This is a planning guide, not a quote.
Your mortgage is only part of the cost.
Even when you love your home and plan to stay, bills keep coming. Some arrive each month. Others come once in a while.
Costs you can plan for
- Mortgage payments, if you have one
- Property tax
- Home insurance
- Heat, water, and power
- Condo fees, if you pay them
Costs that may surprise you
- A roof that needs work
- A furnace that stops working
- A broken pipe
- Other home repairs
Try this: Look at what you spent on your home over the past year. Add the small bills and the large ones. The total may surprise you.
The sale price is not what you take home.
A sold sign can show a big number. But some of that money goes to pay off the mortgage and the costs of selling.
Costs to check
- Money left on your mortgage
- Agent fees, if you use an agent
- Legal fees
- Moving or repair costs
- A fee to end your mortgage early, if one applies
Why your number matters
The amount left after costs is the money you may be able to use for your next step. It helps to know this before you plan a move.
Taxes may also apply in some cases. Ask a tax expert when needed.
Where the money goes
Made-up exampleThese numbers are only an example. Real fees, mortgage costs, and taxes vary. Ask your lender and lawyer for your exact figures.
Keep it simple
Three numbers worth knowing.
You do not need to make a move today. You can start with one question.
The best time to learn is before you need to choose.
A clear picture can help you plan with less stress. Start with the costs you know. Then ask your lender, lawyer, or real estate advisor to help fill in the gaps.
One small step today: Write down the number you are least sure about. That's a good place to start.
A few quick answers
What are closing costs?
These are costs you pay when you buy a home, on top of the down payment. They may include legal fees, land transfer tax, and title insurance.
Do I get the full price when I sell?
Usually, no. You may need to pay off a mortgage and cover selling costs. Your lawyer can help show how much is left.
What if I'm not moving?
Knowing your yearly home costs can still help. It makes it easier to plan for repairs and future bills.
