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Buyer’s Expenses

Costs Incurred When Buying Property


Building Inspection Fees

An inspection is an examination of the condition of the property after your offer is accepted.
* Approximately $300 to $700, depending on the square footage of the property

Appraisal Fees

An appraisal of the property (if required by your lending institution) will be performed to ensure that the value is reasonable relative to the purchase price.
* Approximately $200 to $300

Survey Certificate Fee

A survey certificate is required by your lending institution to indicate where buildings are located on your property line. The survey certificate can be obtained from the seller for free if the seller has a copy. It does not apply to the strata units.
* Approximately $200 to $375

Property Title Transfer Tax

A tax collected by the provincial government every time a property changes title.
* 1% of the first $200,000 of the purchase price plus 2% of the remaining balance

Goods and Service Tax (GST)

Canadian federal government tax collected on all goods and services.
* 4.5% to 6% GST is applied on top of the purchase price of the property. The rate of GST payable depends on the price of the property. GST is only applicable to brand new property, raw land, art studio, and commercial property.
* 6% is applied on all commissions when selling a property.
* 6% is applied on all fees such as those of inspectors and lawyers

Legal Fees

Miscellaneous legal fees paid to a lawyer or notary public for searching title of a property, investigating title of a property, drafting documents, land title registration, etc.
* Approximately $650 to $1,000

Adjustment Fees

Miscellaneous fees such as prepaid taxes and management fees.
* These vary for each buyer and should be confirmed by your lawyer or notary public prior to closing

CMHC Application Fee

CMHC mortgage loan insurance application fee. This only applies to buyers that have less than 20% down payment.
* If an appraisal is required by the lending institution, CMHC offers a mortgage insurance application package that includes the appraisal for $165. The cost of a regular CMHC mortgage loan insurance application is $75.

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