Ask a Wahi REALTOR®: What Are Common Hidden Costs That Homebuyers Often Overlook?

In the latest instalment of Ask a Wahi REALTOR®, Wahi Broker of Record Anne Alkok uncovers nine costs known to catch homebuyers off guard.

By Josh Sherman | 4 minute read

Research suggests that eight-out-of-10 Canadian homebuyers have been confronted with unexpected costs when closing.

It’s no secret that buying a home is expensive. It’s generally the single biggest purchase a Canadian will make in their lifetime, and for years homebuyers across the country have been inundated with headlines and reports about the high cost of real estate. 

However, many are unaware of the hidden costs of buying a home, which include a slew of surcharges and taxes on top of the purchase price a homebuyer may have budgeted for. In fact, a recent Angus Reid survey found that 82% of Canadians were caught off guard by certain costs related to homebuying. Just the fees associated with buying a home can equal up to 2 to 3% of a home’s value, according to National Bank.

To help homebuyers avoid unpleasant surprises at closing time, we spoke to Wahi Broker of Record Anne Alkok about the often-overlooked costs of buying a home. Here are nine common hidden costs that homebuyers often don’t consider when house hunting.

1. Home inspection 

“If you can get a home inspection I highly recommend it,” says Alkok. When a real estate market is hot and bidding wars abound, homebuyers often feel pressured to waive a home inspection in fear that they’ll miss out on a property. Sellers hold the cards in these situations. However, with generally cooler conditions prevailing in major Canadian housing markets today, more homebuyers are opting for inspections before sealing the deal.

Of course, a home inspection comes at a cost: around $450 to $600, but it’s worth it, says Alkok. “That may highlight some things that you have to remedy,” she notes. “We always recommend adding a condition for a home inspection so they’re aware of the condition of the home, what the lifespan of the various systems are and if there’s any major issues with the house,” says Alkok. Home inspections are valuable for both resale and new homes.

2. Legal fees 

“Typically you wouldn’t pay a mortgage agent or your bank, but there are legal fees for registering the title to your home and the mortgage,” Alkok explains. There are some exceptions in terms of paying the bank: for instance, sometimes an appraisal has a fee, or if you require bridge financing your lender may charge you a $500 setup fee (bridge financing is a short-term loan available to homeowners when the closing date on the home they’re selling isn’t scheduled until after the closing date on the home they are buying). The legal fees related to buying a home are more substantial. They typically range from $1,500 to $3,000, according to National Bank.

3. Movers 

“A lot of people rent trucks and have all their friends come and help. But you may end up doing multiple trips,” says Alkok. If you’re going to hire movers, don’t base your decision on the cheapest option. “Reputable movers are not cheap,” Alkok explains.

How much you pay depends on how far you’re moving and how much stuff you’ve got. On average, it costs $583 to move a one-bedroom home, according to a HomeStars price guide based on verified homeowner reviews. Meanwhile, moving a whole house might run you up to $10,000.

4. Land survey 

“If you are planning significant construction on the property—such as building a large deck, garage, or home addition—an up-to-date land survey may be required,” says Alkok.

A land survey plan is a legal document that maps out the specific attributes and boundaries of your property, which can sometimes become the subject of disputes. Having an up-to-date survey ensures that any work you do on your property won’t encroach on your neighbours’ lots.

Survey costs vary based on the characteristics and size of a property, but Protect Your Boundaries estimates that it’ll cost $1,800 or more to commission a surveyor in Toronto. Some markets may be less expensive.

5. Land-transfer taxes

When you’re buying a home, the tax man gets his share as well. “One of the most significant expenses is the land transfer tax, particularly in Ontario,’ says Alkok. “In Toronto, buyers face a double land transfer tax, which can substantially increase closing costs. It’s a critical expense to plan for in advance.”

Some Canadian provinces, including Ontario, B.C., and Prince Edward Island, provide land-transfer tax rebates to first-time homebuyers, though costs can still be in the tens of thousands of dollars. 

For example, according to the Toronto Regional Real Estate Board, on a $1 million home in Toronto, land transfer taxes total $32,950, split evenly between municipal and provincial levies. The maximum available rebates in Ontario bring the amount owing down to $24,475.

6. Sales tax (on new homes) 

If you’re purchasing a new home directly from a developer, you’re on the hook for sales taxes, which depending on the province range from a low of 5% in Alberta up to 15% in New Brunswick, Newfoundland and Labrador, and Prince Edward Island. However, homebuyers may be eligible for rebates of up to $6,300. On the campaign trail, Liberal Prime Minister Mark Carney, who defeated runner up Conservative candidate Pierre Poilievre to form a minority government, promised to scrap the Goods and Services Tax for first-time homebuyers purchasing new homes priced under $1 million. This change has yet to come into effect, but if it does, the Liberals say it could put as much as $50,000 back into the pockets of first-time homebuyers.

7. Property taxes 

Homeowners are responsible for keeping up with annual property taxes, which range from municipality to municipality and are paid in installments throughout the year. Recent Wahi analysis of property tax rates across Ontario’s 30 biggest cities found that average annual payments in 2024 ranged from $3,334 in Windsor up to a high of $5,658 in Markham.

Sometimes, a seller has already pre-paid a portion of their tax bill, in which case the buyer is responsible for reimbursing them. This expense will be noted in the buyer’s statement of adjustments, which is part of the closing paperwork and outlines what the purchaser has already paid as well as any outstanding items.

8. Blinds 

Don’t overlook the cost of window coverings when budgeting for a new build. “Whether it’s a condo or a house, blinds and other window treatments can represent a significant, often unexpected, expense,” says Alkok. “I recently spent $1,500 just for the blinds in my living and dining rooms, and I know others who have paid much more — it can easily run into the thousands.”

9. Security 

Does the home you’re buying already have a monitoring system up and running for security? “Monitoring systems, whether they’ve been included and whether there’s a fee for taking that over from the previous owner is something to be aware of,” says Alkok. “If the system gets taken out, will there be a hole in a wall?” Installing a new system could cost $200 or more, though monthly payments can start from as low as about $15 a month.