Costs Associated with Buying a House in Canada

Buying a home in Canada is never easy, regardless of your age, location or current financial situation. But, we can all agree that buying a new home is most difficult for young, first-time homebuyers.

If it's your first time searching for or buying a home in Canada, you may not be aware of many of the lesser-known costs associated with buying a house. However, it's imperative that you take the time to familiarize yourself with these expenses if you want to make sure that no unexpected issues arise in the near future.

In this article, we'll go over a number of the "hidden" expenses that you can expect when buying a home in Canada's most populated province, Ontario.

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How much does it cost to buy a home in Ontario?

The costs of buying a house in Ontario are based on several variables, such as the:

• Size of the home
• Location of the property
• Quality of the build
• Style of the house

We can say that the average price of a home in Ontario is approximately $890,000, which is significantly higher than the national average of $720,000.

That being said, homeowners need to remember that this is just the price of the property — the numbers mentioned previously do not include the additional expenses listed below:

Deposit fees

A deposit is a fee that the buyer pays to the seller to prove that they're committed to the purchase.

Homebuyers do not need to pay a deposit fee; however, choosing not to can be risky. This is due to the fact that if you don't pay a deposit fee, the seller has the power to accept offers from other potential buyers. In turn, you could miss out on the opportunity to purchase your dream home.

There's no set amount for deposit fees in Ontario, as the total is generally influenced by the asking price and the local real estate market. Reach out to your real estate agent for more information on picking an amount for your deposit.

Home inspection fees

There are several fees when buying a house in Ontario, one of which being home inspection expenses.

As a quick reminder, a home inspection is a thorough evaluation of a property's interior (and, occasionally, the exterior). Getting a house professionally inspected can not only provide you with peace of mind, but it can also help you get a better sense of the overall condition of the structure.

Not to mention, the home inspector will let you know if there are any potential or pre-existing issues (mold infestations, faulty wiring, etc.) that need to be addressed before the moving process begins.

Although home inspections aren't technically necessary, your mortgage lender may require you to get the property professionally assessed before committing to an agreement.

The price of an inspection varies depending on the size and location of your home, but they generally cost $350.

Home insurance fees

We know that home insurance isn't necessarily a "hidden" fee, but it's an additional (and important) expense nonetheless.

Unless you're planning on buying your house outright, you will likely need to purchase home insurance for your new property. Your mortgage lender will likely require you to obtain some form of coverage for the property before committing to a loan.

New homebuyers should always remember to include the price of their home insurance into the overall total of expenses when buying a house in Ontario.

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Moving expenses

Unless you can pack all of your belongings into the bed of a pick-up truck, you'll likely need to hire a professional moving service.

Although professional moving services are undoubtedly convenient, they do come at a cost. The price varies from company to company, but it's not uncommon for homeowners to pay upwards of $1,000 for a moving service in Ontario.

If you'd like to cut down on moving costs, you can simply rent a truck or cargo van. However, you'll need to cover the following expenses:

• Fuel
• Movers (you may be able to convince friends or family members to lend you a hand)
• Rental car insurance (optional if you have standard car insurance)

General property maintenance fees

Unfortunately, the expenses don't stop after you've signed on the dotted line and moved into your new home. After all is said and done, you'll need to start working on the house.

As the homeowner, you'll be responsible for a number of additional property maintenance-related fees, some of which include:

• Lawncare and landscaping
• Utilities (heat, electricity, hydro, etc.)
• Decorations
• Renovations
• Misc. professional services when required (electricians, plumbers, etc.)

Although you can tackle some of these tasks by yourself, you'll likely have to call in a professional for some of the complex issues (for instance, rewiring an old home).

What have you learned about the hidden costs associated with buying a house Ontario?

You don't need to be a real estate expert to know that buying a home is no small task, especially in highly populated provinces like Ontario. That's why we wanted to put this list together — to make the process easier for prospective homebuyers like yourself.

Although we can't help you cut your utility expenses or waive your inspections fees, we're always happy to help you save on home insurance. If you're having a hard time finding quotes that meet your needs or work with your budget, remember that our experienced insurance advisors are a call or click away.