Many first-time buyers save for the down payment and forget the costs that come due on closing day.
Common closing costs
- Ontario land transfer tax (first-time buyers may qualify for a rebate of up to $4,000)
- Legal fees and title insurance
- Home inspection and appraisal
- Provincial sales tax on mortgage default insurance, if your down payment is under 20% — this must be paid at closing and can't be added to the mortgage
- Property tax and utility adjustments
- Moving costs
A good rule of thumb
Set aside about 1.5% to 4% of the purchase price for closing costs.
Don't forget ongoing costs
Property taxes, home insurance, utilities, maintenance and condo fees all affect what you can comfortably afford.
Planning your first purchase in Ottawa? I'll help you build a realistic budget before you start house hunting.