Once you’ve bought your home, there are still some extra fees to watch out for:
In most provinces, special insurance providers offer warranties on new homes. The enrolment fee (often in the $500–$1,000 range) protects buyers from losing their deposit, should the builder goes bankrupt, or for having to pay for any repairs within a certain period of time, should the builder fail to build to standard.
Some builders include this fee in the asking price; if yours doesn’t, it will be added to the Statement of Adjustments, made payable to the builder.
If you’re putting down more than 20% of the purchase price of your home, you’ll be left with a conventional mortgage, meaning a mortgage that doesn’t require default insurance.
When you’re buying any home with a conventional mortgage, your lender will likely ask you to get an appraisal. An appraisal of the property serves as confirmation for the lender that the market value of the property is accurate. They can do this without a physical examination of the property, looking at past sales in the area and other data. The appraisal fee is sometimes the buyer’s responsibility (if your lender doesn’t cover it) and is typically between $150 and $500.
If you have a down payment that’s less than 20%, the insurer—like CMHC, for example—performs and pays for the appraisal.
In certain circumstances when you buy a home, lenders will ask for an up-to-date land survey to be done. The survey itself is fairly simple: a surveyor visits the property you want to buy, measures the land, and ensures all boundary lines in the property title are being followed. Because the seller usually commissions the land survey, they would also pay the fee, (generally in the $600–900 range). If the seller of your home doesn’t commission an up-to-date survey, your lender may ask you to get one done—leaving you to pay the fee.
While hook-up fees aren’t a closing cost per se, having people come to set up cable, Internet, electricity, gas, and other essentials can cost money. It’s a good idea to keep a few hundred dollars in your budget to cover those fees.