What will buying really cost?

By Jonathan Wiseman, REALTOR®Reviewed September 28, 2026

The purchase price is only part of the financial picture.

Before you buy a home, it helps to understand where the money can go: not only what you'll need to complete the purchase, but what owning that particular home may mean financially after you get the keys.

Some costs can be calculated quite closely in advance. Others depend on the property, your financing, the professionals involved and the decisions you make along the way.

My job is to help you understand which costs may apply, get the right information at the right time and see how those pieces fit into the overall decision.

The short answer

Buying a home involves more than your down payment.

There's the deposit you may need when making an offer, the money required to complete the purchase, and costs such as land transfer tax, legal work, inspections or other due diligence that may apply.

Then there's the home itself: property taxes, insurance, utilities, condo fees where applicable, maintenance, repairs and any work you're already planning to do.

You don't need every number on day one. You do need to know what to account for and when we'll need the actual figure.

The cost of buying the home

The deposit: when you need the money matters

The deposit isn't another cost added to the purchase price. It becomes part of the money you're putting toward the purchase. But you may need access to it well before closing, and the amount and timing depend on the particular offer and agreement.

That's one reason I like to discuss the deposit before we're sitting down to write an offer. Having enough money to complete the purchase isn't quite the same as having access to the money you need at each stage of the transaction.

Your down payment

Your down payment is the part of the purchase price you provide yourself, rather than financing it through your mortgage. There are minimum down payment requirements.

But the minimum isn't necessarily the amount that's right for you. How much you put down can affect your mortgage, mortgage insurance where applicable, and how much money you have left available after the purchase.

A good mortgage professional will work with you to understand the options and what makes sense for your particular financial situation. If you already have someone you trust, great. If you don't, I can recommend mortgage professionals for you to speak with. We'll work together so that the financing decisions and the real estate decisions aren't happening in isolation from one another.

How much you need for a down payment (FCAC) (opens in a new tab)

Land transfer tax

Ontario land transfer tax is paid to the province when the purchase closes, and it's based on a government calculation. Depending on you and the purchase, relief may apply: for example, eligible first-time homebuyers may qualify for a refund of all or part of it.

This is something we can identify and account for before closing, rather than something that appears as a surprise. Your lawyer includes the applicable land transfer tax in the closing calculations.

To see the tax for a purchase price you're considering, use the Ontario Land Transfer Tax Calculator.

Land transfer tax (Government of Ontario) (opens in a new tab)

Sources: Government of Ontario (opens in a new tab), Land transfer tax (January 2, 2026); Government of Ontario (opens in a new tab), Land transfer tax refunds for first-time homebuyers

Legal costs and closing figures

Your lawyer handles the legal work required to complete the purchase. Depending on the transaction, the closing figures can include:

the money still required to complete the purchase;
land transfer tax;
legal fees and disbursements;
title insurance, where applicable;
adjustments between buyer and seller.

The exact numbers depend on your particular purchase. We'll work together to identify the information we need as the transaction progresses. Your lawyer provides the legal and final closing figures, but these costs shouldn't first enter the conversation a few days before you get the keys.

Adjustments on closing

The amount you need on closing isn't necessarily just the purchase price, minus your mortgage, minus your deposit. Adjustments can change it.

Property taxes are an easy example. If the seller has already paid the property taxes for a period after you take ownership, you'll usually reimburse the seller for that part on closing. Adjustments like this can change the final amount needed to complete the purchase, and your lawyer's closing figures set them out.

Inspections and other due diligence

Depending on the property and how the purchase is structured, you may spend some money before you own the home. That can include:

a home inspection;
further investigation by a qualified professional, where something deserves a closer look;
an appraisal, if your financing requires one;
other due diligence specific to the property.

As we work through a particular property, we'll identify what information may be worth obtaining, what it may cost and who can provide it. The goal is to make those decisions with the right information, rather than assume every purchase follows the same checklist.

The cost of owning the home

Once you own the home, there are ongoing costs to account for, along with expenses that will depend on the particular property and what you plan to do with it. These can include:

your mortgage payment;
property taxes;
home insurance;
utilities;
condo fees, where applicable;
routine maintenance;
repairs;
furniture or appliances;
moving;
improvements you want to make right away;
larger items you already expect to deal with in the future.

This is one reason I pay attention to more than first impressions when we're looking at houses. Two homes with the same purchase price can represent very different financial decisions.

One may have a newer roof, windows, furnace and air conditioner, but a kitchen you don't like. Another may have the kitchen you love, but several larger components that may need attention sooner.

Neither is automatically the better purchase. The question becomes: what do those differences mean for you, your plans and your budget?

The things you want to change count too

Not every future expense is a defect or a repair. Sometimes you'll simply want to change things. Repainting a few rooms is a relatively straightforward decision; replacing the flooring throughout the home or renovating the kitchen is a much larger one.

The goal is to understand what you're buying, what you may want to change and what those choices could mean financially.

Government programs that may help

Federal and provincial programs may help eligible buyers with saving toward a home, using existing savings and certain taxes associated with buying.

Programs change. Limits change. Eligibility rules change. Different programs may define a first-time buyer differently, and qualifying for one doesn't automatically mean you qualify for another.

Programs worth knowing about include:

the First Home Savings Account (opens in a new tab) (Canada Revenue Agency);
the Home Buyers' Plan (opens in a new tab) (Canada Revenue Agency);
the land transfer tax refund for first-time homebuyers (opens in a new tab) (Government of Ontario);
for new homes, the first-time home buyers' GST/HST rebate (opens in a new tab) (Canada Revenue Agency).

Rather than building your purchase around an old number you found online, we'll look at what programs are current when you're actually planning to buy and which ones may apply to your situation.

Buying new construction is different

Buying a newly built home involves some additional financial and representation considerations. The advertised or base price may not be what the finished home you want will ultimately cost. Before committing to an agreement with a builder, it helps to understand:

what's included;
what's not;
upgrades;
lot premiums, where they apply;
the choices you already know you're likely to want.

Talk to your REALTOR® before your first visit

If you're thinking about buying new construction and you want your own REALTOR® involved, talk to your REALTOR® before you visit the builder's sales centre or model home for the first time.

Builders can have their own policies for registering buyers and working with a buyer's REALTOR®. Depending on the builder, visiting or registering on your own first may affect whether, or how, your REALTOR® can take part later under the builder's arrangements. Policies vary from builder to builder, so it's worth knowing before you go.

Someone working for the builder isn't the same as someone representing you

When you walk into a builder's sales centre, the person you're dealing with is there on behalf of the builder. Depending on the builder, that person may be a real estate professional or they may be part of the builder's sales team.

Either way, their role is different from having your own REALTOR® representing you in the purchase.

When I represent you, I'm working for you, looking at the transaction from your side: helping you understand what's being offered, asking questions about the things that matter to you, looking at the costs and choices beyond the advertised price, and negotiating on your behalf where there's an opportunity to do so.

That's why it's worth having this conversation before your first visit, so you understand the builder's process and your representation options from the beginning.

Think about the finished home, not only the base price

Timing can matter. If you already know you want certain features, finishes or upgrades, identifying them before you commit may allow them to become part of the overall purchase discussion. Once an agreement is signed, later selections may be subject to the builder's available choices and established pricing.

The question isn't simply “What's the base price?” It's “What will the home I actually want cost?”

HST and rebates

HST applies to new homes, and government rebates may affect what a qualifying new-home purchase costs. Some rebates can be credited by the builder and reflected in the price.

I'll work with you and the builder to understand what rebates are being applied to the purchase and how they're reflected in the price. Where something needs legal or tax confirmation, I'll help identify what needs confirming and who should confirm it.

The important thing is that we understand how the numbers are being treated before you rely on them in your purchase decision.

GST/HST new housing rebates (Canada Revenue Agency) (opens in a new tab)

Sources: Canada Revenue Agency (opens in a new tab), RC4028, GST/HST New Housing Rebate; Canada Revenue Agency (opens in a new tab), First-time home buyers' (FTHB) GST/HST rebate; Canada Revenue Agency (opens in a new tab), Ontario Enhanced New Housing Rebate

Putting the whole financial picture together

Understanding what buying a home will really cost means looking at the whole financial picture.

Some costs can be determined in advance. Others come from your financing or the legal closing process. Some depend on the property itself and what you intend to do after taking ownership.

You don't have to figure all of that out by yourself before calling a REALTOR®. That's part of what we'll work through together.

My role is to help you understand the costs and decisions that may apply, make sure we're getting the right information from the right people at the right time, and help you see how those pieces fit into the overall purchase.

The goal is to understand what you're buying, where the money may go and whether the overall decision makes sense for you.

Buying a home in London, explainedThe Buying section: what to understand before you buy.
The buying process, step by stepHow a purchase works in practice, from the first conversations to the keys.