Home Buying Costs Explained | What to Budget for as a First-Time Homebuyer

Wondering what costs to budget for when buying a home? Here's a breakdown of the most common (and often forgotten) expenses buyers should prepare for:

🔹 Legal Fees: You’ll need a real estate lawyer to handle things like title transfer, mortgage registration, and more. Budget around $1,000–$2,000 depending on who you hire.
🔹 Appraisal: Your lender may require an appraisal to confirm the home's value — if they do, theyll pick thee appraiser but the expense is on you.
🔹 Home Inspection: Not always required, but highly recommended. A good home inspection typically starts around $600 and can save you from costly surprises!
🔹 Home Repair Fund: Even move-in-ready homes need a little TLC. Setting aside money for minor repairs or upgrades is a smart move!
🔹 Deposit: This is the amount you put down when your offer is accepted — typically 1–5% of the purchase price and forms part of your down payment.
🔹 Moving Costs: Whether you're renting a truck or hiring movers, these costs add up fast. Plan for at least a few hundred dollars.
🔹 Property Taxes: Depending on when you buy, you may need to reimburse the seller for prepaid taxes or start budgeting monthly for them right away.
🔹 GST: If you're buying a new build or a home directly from a builder, GST may apply. In Canada, this is 5% — and while rebates exist, it's important to know when it’s owed. It's best to consult with your accountant on this topic!

🔹 Realtor Fees?: If you’re buying, your agent’s commission is usually covered by the seller and their brokerage — in most cases, this won’t cost you a dime!

Want help figuring out what to budget for in your unique situation? Reach out anytime — we’re here to help!

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Southern Alberta Homes Team
Grassroots Realty Group