🧾 What You’ll Actually Spend When Buying a Home

A clear, simple guide to what you’ll actually spend—before and after getting the keys

Buying a home is exciting, but it’s also one of the biggest financial decisions you'll ever make. And while most buyers focus on the purchase price, the true cost of homeownership goes far beyond that number.

From upfront expenses to long-term monthly costs, understanding everything involved is the key to avoiding surprises, planning your budget, and feeling confident in your decision. Here’s a full breakdown of what to expect—so you can move forward fully prepared.

💰 Upfront Costs of Buying a Home

1. Down Payment

What it is: What you pay upfront toward the purchase.

Minimums in Canada:
• 5% for homes under $500,000
• 10% for the portion between $500,000 and $1,499,999
• 20% for homes $1.5M and above

Example:
On a $400,000 home, the minimum down payment is $20,000.

2. Closing Costs

These are the fees due on possession day:

• Legal fees

• Land transfer tax

• Title insurance

• Home inspection

• Appraisal

Typical Range: 1.5%–4% of the purchase price
Example: A $400,000 home → $6,000–$16,000

3. Home Inspection & Appraisal

🔍 Home Inspection: Confirms the home’s condition and uncovers any issues.
Cost: $300–$600

📄 Appraisal: Required by the lender to confirm the value.
Cost: $300–$500

4. Moving Costs

Depending on distance and how much help you hire, costs can include:

• Movers or a rental truck

• Utility setup fees

• Cleaning services

Typical Cost: $1,000–$5,000

🏡 Ongoing Costs of Homeownership

1. Mortgage Payments

Your mortgage payment includes:

• Principal: The amount you borrowed

• Interest: The cost of borrowing

• Mortgage insurance: If you put under 20% down

Example:
A $400,000 home with 20% down at 5% interest ≈ $1,700/month (25-year amortization)

2. Property Taxes

Paid annually based on your home’s assessed value.
Typical Range: 0.5%–2.5% of the property value.

Example: A $400,000 home = $2,000–$10,000/year

3. Home Insurance

Protects your property and covers liability.
Typical Cost: $800–$2,000/year

4. Maintenance & Repairs

Even newer homes need ongoing care.

Rule of Thumb: Budget 1%–3% of your home’s value annually.
Example: For a $400,000 home → $4,000–$12,000/year

5. Utilities & Bills

Includes electricity, gas, water, internet, and waste removal.
Typical Cost: $200–$500/month

🧩 Hidden (Often Overlooked) Costs

1. Renovations & Upgrades

Most buyers update things after moving in.
Typical Range: $5,000 to $50,000+ depending on the project.

2. Condo Fees or HOA Fees

If you're buying a condo or a home with shared amenities.
Typical Cost: $200–$1,000+/month

3. Emergency Repairs

Furnace failures, roof leaks, plumbing issues — things you don’t see coming.
💡 Pro Tip: Keep an emergency fund for unexpected fixes.

📆 Tips for Smart Planning & Budgeting

1. Get Pre-Approved

This helps you understand your price range and what your monthly payments will look like.

2. Save for More Than the Down Payment

Set aside funds for:

• Closing costs

• Moving expenses

• Repairs that pop up early on

3. Build a Trusted Team

• Realtor: Helps you navigate the process and avoid costly mistakes

• Mortgage Broker: Finds the best financing

• Home Inspector: Provides peace of mind before you buy

4. Look Ahead 5–10 Years

Make sure your ongoing costs still fit your long-term goals and lifestyle.

🎉 Final Thoughts: Know the Full Picture Before You Buy

Homeownership is an amazing milestone—but the key to enjoying it is understanding the full financial picture upfront. When you know what to expect, you can plan confidently, reduce stress, and make the buying process much smoother.

If you’re thinking about buying and want a personalized breakdown of what your budget should look like, I’d love to help.

📞 Call or text me at (639) 295-4696
📩 tanner@twrealestate.ca
🌐 twrealestate.ca

Let’s make your path to homeownership simple, clear, and stress-free.