There is more to buying a house than just picking your favourite. Be prepared before you go looking, so that you know what to expect in terms of the other costs associated with a real estate transaction.

1. The deposit

This amount can vary. Ask your real estate agent what you can expect. In Kingston we see a lot of deposits between $1,000 and $5,000 but for more expensive homes or in unique situations a deposit can exceed $10,000.

2. Provincial Land Transfer Tax

There’s a pretty straight forward formula for figuring out how much land transfer tax you’re going to have to pay.

The tax rates calculated on the value of the consideration are:

• 0.5% up to and including $55,000
• 1% above $55,000 up to and including $250,000
• 1.5% above $250,000
• 2% above $400,000 where the land contains one or two single family residences.

If you just want a rough idea see below:

Purchase Price = $250,000. Land Transfer Tax = $2,250

Purchase Price = $500,000. Land Transfer Tax = $6,475

3. Lawyer’s Fees

These fees can range depending on the complexity of the purchase. Expect something in the neighbourhood of: $1,000 – $1,500. Better yet, call up a few lawyers and get an estimate.

4. Home Inspection

Approximately $500…spend the money, it’s worth it!

5. Pre-paid property tax

Many people will have paid property tax in advance. This means that you may be on the hook for some of what they’ve already paid.

6. Moving expenses

Are you doing it yourself, or hiring movers? The costs will vary dramatically.

7. Mortgage loan insurance

Are you buying a home with less than 20% down? This will likely come into play. Ask your mortgage agent.