Closing Costs Surprise Canadian Home Buyers

Many first-time buyers save for the down payment, then face a second wave of cash closing costs in the final weeks before closing.
Closing costs can add thousands beyond the down payment, so building a separate fund before house hunting can help avoid a scramble.
Land transfer tax is often the biggest surprise. It is usually due in full at closing, though some provinces offer first-time buyer relief.
With a smaller down payment, mortgage default insurance can add a sizable premium to the loan, and some provinces still require the sales tax upfront.
Professional fees and move-in costs also add up: legal work, inspections, appraisals, title insurance, prepaid taxes, utilities, locks, blinds, appliances, and repairs.
If using tax-advantaged savings or a homebuyer withdrawal program, set aside closing costs first; the remaining funds show what is truly available for down payment.