extra costs of buying a home

You already know buying a home is expensive. On top of your down payment and mortgage payments, there are some extra costs of buying a home you need to consider. To make sure you’re fully prepared, let’s go over some of the costs members often don’t consider.


Land transfer tax

In Manitoba, you need to pay a Land Transfer Tax to the Province, which keeps a registry of all land titles. You will have to pay a registration fee of $70 plus the tax, which is calculated based on a percentage of the value of the house. For example, if the purchase price of your home is $200,000 that would mean a Land Transfer Tax of $1,650.


Legal fees

To make sure everything is by the book, you’ll need a lawyer to complete your home purchase. Lawyers will do a few different important things for you:


  • due diligence against the property
  • draft your offer of purchase
  • oversee the closing of the sale
  • handle the transfer of keys

Legal fees are usually around $1,200 but do vary. Your lawyer will bill you once the purchase is complete.


Mortgage insurance

If your down payment is less than 20% of the price of the home, you may be required to purchase CMHC or Genworth mortgage insurance. You can either add the cost of your insurance to the principal of your mortgage or pay it in full. This is calculated based on a percentage of your mortgage (usually between 0.6 % – 4.5%).


Property insurance

Property insurance covers the cost of replacing the structure and contents of your home. This is really important to have and you need to have this in place by closing. The cost is dependent on the value of your home. Our friends at Brio Insurance can help get you a quote for your property insurance.


Title insurance

Title insurance will cover the cost of any loss caused by possible defects in the title. This will cost approximately $200.


Property appraisal

If your new home isn’t CMHC insured, you will need to get an appraisal. This can cost you anywhere from $200 – $400 depending on mileage.


If you’re doing the math, you can expect to pay at least $4,500 in extra fees. Hidden fees aren’t fun, but now that you know the extra costs of buying a home, you can save and go into your purchase prepared!

have questions?

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Saturday 8:00 am – 4:00 pm


Give them a call 1.833.378.6682, send a text 1.204.813.5786 or start a chat session!


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