Costs Associated with Buying Property

Kevin Blue • August 20, 2025

When calculating if you can afford to purchase a property, don’t just figure out a rough downpayment and quickly move on from there. Several other costs need to be considered when buying a property; these are called your closing costs. Closing costs refer to the things you’ll have to pay for out of your pocket and the amount of money necessary to finalize the purchase of a property.


And like most things in life, it pays to plan ahead when it comes to closing costs. Closing costs should be part of the pre-approval conversation as they are just as important as saving for your downpayment.


Now, if your mortgage is high-ratio and requires mortgage default insurance, the lender will need to confirm that you have at least 1.5% of the purchase price available to close the mortgage. This is in addition to your downpayment. So if your downpayment is 10% of the purchase price, you’ll want to have at least 11.5% available to bring everything together. But of course, the more cash you have to fall back on, the better.


So with that said, here is a list of the things that will cost you money when you’re buying a property. As prices vary per service, if you’d like a more accurate estimate of costs, please connect anytime, it would be a pleasure to walk through the exact numbers with you.

 

Inspection or Appraisal


A home inspection is when you hire a professional to assess the property's condition to make sure that you won’t be surprised by unexpected issues. An appraisal is when you hire a professional to compare the property's value against other properties that have recently sold in the area. The cost of a home inspection is yours, while the appraisal cost is sometimes covered by your mortgage default insurance and sometimes covered by you!


Lawyer or Notary Fees


To handle all the legal paperwork, you’re required to hire a legal real estate professional. They’ll be responsible for transferring the title from the seller's name into your name and make sure the lender is registered correctly on the title. Chances are, this will be one of your most significant expenses, except if you live in a province with a property transfer tax.


Taxes


Depending on which province you live in and the purchase price of the property you’re buying, you might have to pay a property transfer tax or land transfer tax. This cost can be high, upwards of 1-2% of the purchase price. So you’ll want to know the numbers well ahead of time.

 

Insurance


Before you can close on mortgage financing, all financial institutions want to see that you have property/home insurance in place for when you take possession. If disaster strikes and something happens to the property, your lender must be listed on your insurance policy.


Unlike property insurance, which is mandatory, you might also consider mortgage insurance, life insurance, or a disability insurance policy that protects you in case of unforeseen events. Not necessary, but worth a conversation.


Moving Expenses


Congratulations, you just bought a new property; now you have to get all your stuff there! Don’t underestimate the cost of moving. If you’re moving across the country, the cost of hiring a moving company is steep, while renting a moving truck is a little more reasonable; it all adds up. Hopefully, if you’re moving locally, your costs amount to gas money and pizza for friends.


Utilities


Hooking up new services to a property is more time-consuming than costly. However, if you’re moving to a new province or don’t have a history of paying utilities, you might be required to come up with a deposit for services. It doesn’t really make sense to buy a property if you can’t afford to turn on the power or connect the water.


So there you have it; this covers most of the costs associated with buying a new property. However, this list is by no means exhaustive, but as mentioned earlier, planning for these costs is a good idea and should be part of the pre-approval process.


If you have any questions about your closing costs or anything else mortgage-related, please connect anytime; it would be great to hear from you!
KEVIN
MORTGAGE BROKER

CONTACT ME

Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart

By Kevin Blue • November 4, 2026
Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart There’s no denying it—buying a home is an emotional journey. In a competitive market, it can feel like you need to stretch beyond your comfort zone or bid above asking just to have a chance. That pressure can make it hard to separate what you want from what you can realistically afford. One of the biggest pitfalls buyers face is falling in love with a home that’s outside their price range. Once that happens, every other property seems like a compromise—even the ones that might have been a perfect fit otherwise. The best way to avoid this heartache? Get pre-approved before you start shopping. What a Pre-Approval Does for You A mortgage pre-approval gives you more than just a number—it provides clarity, confidence, and protection: Know your buying power : Shop within your true price range and avoid disappointment. Spot potential roadblocks : Uncover issues like credit bureau errors before you make an offer. Get organized : Learn exactly what documentation you’ll need so there are no surprises. Lock in a rate : Many lenders hold your rate for 30–120 days, giving you peace of mind if rates rise. Save yourself heartache : Protect yourself from falling for a home you can’t afford. Head vs. Heart Buying a home is about balance. Your head tells you what’s financially sound, your heart tells you what feels right—and both matter. A pre-approval helps bring those two sides together, so you can make confident choices without emotional stress clouding your judgment. The Bottom Line Looking at properties for fun is one thing—but if you’re serious about buying, a pre-approval is the smartest first step you can take. It sets realistic expectations, saves time, and protects your emotions along the way. If you’d like to explore your options and get pre-approved, I’d be happy to walk through the process with you. Let’s make sure you’re ready to shop with confidence.

Bank of Canada Raises Rates to 2.5%: What It Means for Vancouver Island Borrowers

By Kevin Blue • October 28, 2026
This morning, the Bank of Canada raised its key interest rate by 0.25%, bringing it to 2.5%. Whether you own a home in Parksville or Qualicum Beach, have a renewal on the horizon, or you're in the middle of a build or commercial deal, this decision is worth understanding. Here's what changed, why it happened, and what I'd be thinking about if I were in your shoes.  Why the Bank of Canada Raised Rates The short answer is inflation. Prices have been rising faster than the Bank's 2% target, and it wants to get ahead of the problem before it spreads. Here's what's behind the decision: High energy prices. The ongoing conflict in the Middle East has kept oil prices elevated for months. Inflation has been running around 3% since April and is expected to reach about 3.5% by the end of the year. Rising business costs. Higher fuel and imported material costs are making it more expensive to produce and ship goods. The Bank expects more of those costs to be passed on to consumers over the next year. A stronger economy than expected. Canada's economy grew faster than forecast through the middle of the year, supported by solid consumer spending and a rebound in business investment. By raising rates now, the Bank is trying to stop high energy costs from pushing up the price of everything else. What This Means for Homeowners Variable-rate mortgages and HELOCs Lenders typically adjust their prime rate to match the Bank of Canada's moves, and variable mortgages and home equity lines of credit are tied to prime. Expect your rate to go up by about 0.25%. Depending on your mortgage, that means either a higher payment or more of your payment going to interest. Fixed-rate mortgages Your rate and payment won't change until your term ends. Fixed rates for new mortgages follow the bond market, and bond yields have already been rising, so fixed rates may stay elevated or move higher. Renewals If your renewal is within the next few months, start the conversation now. Many lenders let you secure a rate up to 120 days in advance, which can protect you if rates keep climbing. And please don't just sign your bank's renewal letter. It's rarely their best offer. Buyers Higher rates can reduce how much you qualify for. A pre-approval lets you hold a rate while you shop, so you know your real budget before making an offer. My mortgage calculators are a good place to start running numbers. What This Means for Builds, Commercial and Private Deals This is where rate changes can have the biggest ripple effect, and where planning ahead pays off most. Construction projects Many construction and draw mortgages are tied to prime during the build, so your interest costs may rise as funds are advanced. If you're mid-build, it's worth reviewing your budget for carrying costs. If you're planning a project, factor today's rates into your numbers from day one. Learn more about my construction financing services. Commercial borrowers Variable commercial loans will feel this increase directly. If you're refinancing or acquiring a property, higher rates can affect how lenders view your debt coverage, so the structure of the deal matters more than ever. See my commercial lending page for the types of files I work on. Private lending Private loans are usually short-term bridges to institutional financing. When rates are rising, your exit strategy deserves extra attention. Make sure the takeout financing still works at today's rates, not just the rates you assumed when the deal started. Read more about private lending . What to Expect Next The Bank of Canada said further increases are possible, but it plans to move carefully given uncertainty around energy prices and Canada-US trade. Its forecast has inflation averaging about 3% through 2027 before returning to the 2% target by mid-2028. The next rate announcement is scheduled for December 9, 2026 . Frequently Asked Questions What is the Bank of Canada's rate now? As of October 28, 2026, the Bank of Canada's policy rate is 2.5%, up from 2.25%. Will my mortgage payment go up? If you have a variable-rate mortgage, a HELOC or a prime-based construction loan, it likely will. Fixed-rate mortgages won't change until the term ends. Should I lock in a fixed rate? It depends on your terms, any penalties for switching, and your plans for the property. This is exactly what my annual mortgage reviews are for, and the right answer looks different for everyone. When is the next rate announcement? December 9, 2026. Let's Talk About Your Situation Rate changes are a good reminder to check that your financing still fits your plans. Whether you're a homeowner in Parksville or Qualicum Beach, mid-way through a build, or working on a commercial or private deal anywhere on Vancouver Island, I'd be happy to review where you stand. Reach out anytime, or apply online to get started. No obligation, no pressure. This article is for general information only and is not financial advice. Rates and lender policies change often. Please speak with a licensed mortgage professional about your specific situation.

Breaking Down the Real Costs of Homeownership

By Kevin Blue • October 21, 2026
Don’t Forget About Closing Costs When planning to buy a home, most people focus on saving for the down payment. But the truth is, that’s only part of the equation. To actually finalize the purchase, you’ll also need to budget for closing costs —the out-of-pocket expenses that come up before you get the keys. Closing costs can add up quickly, which is why they should be part of your pre-approval conversation right from the start. Lenders will even require proof that you’ve got enough funds set aside. For example, if you’re getting an insured (high-ratio) mortgage, you’ll need at least 1.5% of the purchase price available in addition to your down payment. That means a 10% down payment actually requires 11.5% of the purchase price in cash to make everything work. Let’s break down some of the most common expenses you should prepare for: 1. Home Inspection & Appraisal Inspection : Paid by you, this gives peace of mind that the property is in good shape and doesn’t have hidden problems. Appraisal : Required by the lender to confirm value. Sometimes this is covered by mortgage insurance, sometimes by you. 2. Legal Fees A lawyer or notary is required to handle the title transfer and make sure the mortgage is properly registered. Legal fees are often one of the larger closing costs—unless you’re also responsible for property transfer tax. 3. Taxes Many provinces charge a property or land transfer tax based on the home’s purchase price. These fees can range from hundreds to thousands of dollars, so you’ll want to factor them in early. 4. Insurance Property insurance is mandatory—lenders won’t release funds without proof that the home is insured on closing day. Optional coverage like mortgage life, disability, or critical illness insurance may also be worth considering depending on your financial plan. 5. Moving Costs Whether you’re renting a truck, hiring movers, or bribing friends with pizza and gas money, moving comes with expenses. Cross-country moves especially can be surprisingly pricey. 6. Utilities & Deposits Setting up new services (electricity, water, internet) can involve connection fees or deposits, particularly if you don’t already have a payment history with the utility provider. Plan Ahead, Stress Less This list covers the big-ticket items, but every purchase is unique. That’s why it pays to have an accurate estimate of your personal closing costs before you make an offer. If you’d like help planning ahead—or want a breakdown tailored to your situation—let’s connect. I’d be happy to walk you through the numbers and make sure you’re fully prepared.