Additional Expenses Home Buyers Should Budget For

Goods and Services Tax (GST)

If you buy a brand new home (new construction) it is usually subject to Federal Goods and Services Tax (GST). The current tax rate is 5% but a partial rebate may be available under certain circumstances. Our job as your mortgage broker is to help you figure out what programs you are eligible for.

Appraisal Fee

A professional appraisal will do a physical inspection of the property, carefully noting information about the number of rooms and the general condition and appearance of the home. Then the home will be compared to comparable properties and a value will be assigned. The cost for an appraisal is generally around $200.

Home Inspection

You should always have the property undergo a full inspection. The inspector knows what problems to look for and will issue a full inspection report. This will give you the option of declining to purchase, asking for repairs,  re-negotiating the price, or carrying through with your original offer to purchase.

Moving and Redecorating Expenses

An expense that isn’t often considered a “closing cost” is that of paying for a mover to transport your furniture and household items to your new residence. Also keep in mind you’ll want/need to buy home décor items and possibly furniture, fencing, and other items for your new home.

Electricity and Telephone Transfers

Home buyers should expect to pay about $75 each to have power and telephone services transferred from a former to a new residence.


If you are purchasing outside the city, on an acreage or private development you may also have to consider:

Tests for Water Quality

A water quality test will be required if you are purchasing a property that uses well water. The cost for this type of test ranges from about $100 for a “do-it-yourself” test to several hundred to pay a professional to conduct this test as well as a test to determine the flow rate of the well.

Septic Field Test

If the property you plan to buy has a septic field, it’s a good idea to have it tested for leaks or other problems. The cost for this test is about $300. If a septic warranty is included in your purchase agreement, you can avoid paying this fee.

Fuel Adjustment Expense

If the home you plan to purchase uses heating oil or has a propane burning fireplace, you will be required to pay the owner for a full tank of fuel at closing.

Our job is to get you the best available mortgage and to advise you on many of the cost saving programs you may be eligible for.


If you have any questions about buying a home talk to us, and we’ll walk you through the decision making process.   Call Justin at  604-736-1855.

Be Sociable, Share!

Leave a Reply