As you know, when you buy a property, you must have some funds set aside to cover purchasing start-up costs. Your down payment and mortgage payments are not the only costs involved, so it’s wise to plan for some additional savings that can be used for these additional expenses.

These expenses should not be taken lightly and many mortgage lenders will want to ensure that you have these funds available before granting you a loan. Mortgage loans are calculated based on the value of your home and, therefore, cannot be used to pay these additional costs.

Here is a list of common start-up costs:

1. Property inspection and evaluation
2. File processing fee for mortgage insurer (ex. CMHC) as well as any taxes on the mortgage insurance premium
3. Notary fees
4. Adjustment costs determined by the notary (electricity, heating, municipal and school taxes, equipment rental contract, etc.)
5. Property transfer tax (welcome tax)
6. Moving expenses
7. Service and utilities hook-up fees (phone, electricity, etc.)
8. Decorating (paint, curtains, etc.)