Home Money
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The amount of money you “actually” need to own a home is far more than you could have ever imagined.  After recently purchasing our first home my wife and I were shocked to all the hidden costs and added headaches that came along with becoming home owners.   I wanted to break down all the costs associated with purchasing a home and hopefully help alleviate the shock stress your bank account will endure. 




 Now for most first time home buyers 5% down is really the way to go unless you can afford 20%.  Let’s say for this article you are purchasing a home of $300,000 dollars.  At 5% down you will require $15000.  Hopefully I haven’t lost you yet but in case you are unable to figure out how I got $15000, just multiply 300,000 by 0.05 and you get 15000, your down payment amount.   Hopefully you are aware of this because there is more to come...


You will be happy to know that the seller pays the realtor fees, phewwf.  Now before you get too excited most realtors require you to put down at least $1000 dollars in trust with them to ensure you are serious about purchasing the house.  Now don’t worry that $1000 dollars goes towards your down payment so in the end you will only require another 14000 dollars for your 5 % down payment.   Just remember when you’re sitting down in the realtors office, don’t forget your cheque book!


Lawyer fees are for me the hardest pill to swallow.  I’m not sure what the lawyer fees really go towards but for us we paid a whopping $2400 dollars! Crazy… I know.  Unfortunately, most places will likely charge this amount and sometimes more depending on the circumstances. 

Property tax

For the most part in Canada, property tax is paid in full once a year, usually in July.   Therefore you will be required to pay the remaining property tax owing on the property for the year.  Property tax varies greatly between regions it is hard to place actually figures but for our house we owed roughly $1200 dollars.  

Other costs that just are part of home ownership

Usually as a result of a sale of a property the title on the home will need to be changed.  In our case we paid $300 dollars for this lovely change.  Once again this I am sure varies region to region.  A must for all home buyers is the home inspection.  The odd fact around home inspections is that there are no legal binding regulations regarding the home inspection and the home insurance.  Basically what I am trying to say is, if your home inspector says your home is great and a year later your roof collapses the home inspector has no legal tie to you or your home so unfortunately you and your insurance company would ultimately work out the costs. Finally don’t forget taxes on all of these items.  Tax came out to roughly $180 dollars.

MoneyCredit: free range stock

So let’s take a look at how much you “actually” spent before setting foot in your new home:

Down Payment

$ 15000


$ 2400

Property Tax

$ 1200

Title Change

$ 300

Home Inspection

$ 1000


$ 180

Grand total

$ 20,080


$ 20, 080 dollars will get you into your new home.  Now before thinking that saving up only for the down payment is your main priority take a step back and realize that you will need at least another 2.5% percent more to save.  For example: In the case of our 300,000 dollar home we need to have 7.5 perfect saved or $ 22,500 (300,000 X 0.075 = 22,500) to safely be able to afford a home of that price.

I hope this opened your eyes to the “actual” costs of home buying and just remember that all these figures were taken assuming you qualified for 5% down.  Imagine if you had to place a minimum of 10% down.  You will practically double all the figures I have given to you!

Anyways happy savings


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