Closing costs are one-time expenses associated with the purchase of a home, and they can really add up. These fees are separate and do not include mortgage insurance and the down payment, and need to be factored into your cash-on-hand budget.

Closing cost amounts are often underestimated. Generally speaking, these costs range from 1.5 per cent to four per cent of the purchase price of your home and depend on its location and type of property you are buying. Factoring these costs into your total budget can help you narrow down an entirely affordable home and ensure future financial stability and security.

Of course, these are estimates, and the actual amount could be higher or lower, depending on the factors mentioned above, as well as if it’s a new construction home.

The following are a few closing costs to keep an eye out for:

It all adds up

These, along with the possibility of payouts for interest adjustments, strata fee adjustments, property condition inspection, a property survey certificate, fire insurance, payout penalties, moving expenses, utilities connections, and lender and mortgage broker fee (in certain circumstances), can quickly accumulate. Being prepared allows you to save the money and reduce the impact of the final tally. Speaking to a mortgage expert to assist you in preparing for closing costs can help with a seamless transition in the purchase of your new home.