Purchasing a home involves one-time costs and monthly expenses. The largest one-time cost is the down payment and it usually represents between 5% to 25% of the total price of the property.

In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for. These costs are listed in the table below.

When purchasing a home for the first time, there are several costs that buyers should consider beyond the down payment and mortgage payments. These additional costs can include:

1. Closing costs: These are expenses associated with finalizing the sale of the home and can include fees for things like the appraisal, title search, and attorney’s fees.
2. Home inspection: A home inspection is necessary to ensure that the property is in good condition before purchase. The cost of a home inspection can vary depending on the location, size, and age of the property.
3. Property taxes: Property taxes are an ongoing expense that must be paid annually. The amount of property taxes varies depending on the location and value of the property.
4. Homeowner’s insurance: Lenders typically require homeowners to carry insurance to protect their investment. The cost of homeowner’s insurance can vary based on the value of the property and the level of coverage needed.
5. Home maintenance and repairs: As a homeowner, you are responsible for maintaining and repairing your home. This can include expenses for things like lawn care, snow removal, and unexpected repairs.
6. Utility bills: As a homeowner, you are responsible for paying for utilities such as electricity, gas, and water. These costs can vary depending on the size and location of the property.
7. Homeowner’s association fees: If the property is part of a homeowner’s association, there may be monthly or annual fees to cover the cost of community amenities and maintenance.

Overall, first-time homebuyers should be prepared to pay for a range of additional costs beyond the initial down payment and mortgage payments. It is important to carefully consider these expenses when deciding whether to purchase a home and to budget accordingly to avoid financial strain down the road.

Try this mortgage affordability calculator from CMHC!