Costs of Purchasing

Costs Associated with Purchasing a New Home


What expenses will I have when purchasing a new home?

Some of these expenses may be covered by your Relocation Benefits.  Each members benefits differ from one another.  Please consult with your Advisor for verification of your Relocation Benefits


Deposit – you must have a Deposit for your Realtor – The Deposit that you will give to your Realtor is to show that you are serious about your offer.  This is given to your agent once you have an accepted offer of purchase and sale.  The Deposit can vary, but it is usually around $1000.00.  This $1000.00 deposit gets put on the principal of your mortgage once the mortgage closes. 


Home Inspection- It is suggested that you have a home Inspection completed.  CLICK HERE FOR A LIST OF IRP APPROVED HOME INSPECTORS IN YOUR AREA


Closing Costs – Each Lender/Bank requires that you can show that you have 1.5% of the purchase price of your mortgage for closing available to take care of lawyers’ fees etc… This amount must be in your bank account and a copy is send to the lender/bank.  This does not mean that you will spend 1.5% in closing costs; this is just the amount that the lender/bank would like to see in your account to cover the costs.  Your benefits may cover this, please see your IRP Advisor.  To find out how much your lawyers’ fees are, contact your lawyer.  CLICK HERE FOR A LIST OF IRP APPROVED LAWYERS IN YOUR AREA


Deed Transfer Tax – The Deed Transfer Tax Rates are set by each County / Municipality.  This is a fee that you must pay to your lawyer on the date of closing.  This fee maybe covered by benefits, please see your IRP Advisor.  You must be able to show the lender/bank that you have these funds in your bank account.


Water Test-  If the property has a well you will need to complete a water test


Appraisal – If you have more than a 20% down payment any bank or lender that you go to will request an appraisal on your property.  Please make sure that you have the inspection on your home completed before you order the appraisal for the bank.  This is an expense to the client for this and varies between $350.00 to $500.00 depending on the location and size of the property. 


Miscellaneous -   When you speak to your lawyer there may be other expenses for the property taxes etc… Please contact your lawyer for details.



You must have a down payment of at least 5%Where can my down payment funds come from?


- Savings or Investments


- RRSP - If you are a first time home buyer you can use your RRSP’s to use as a Down Payment with no penalty for withdrawal.  You are required to pay this amount back to your RRSP’s over a period of 15 years.  Click here for more details on the 1st time home buyers plan


- Gifted Down Payment – with some lenders/ banks you can receive a gifted down payment.  This requires a letter from a direct family member stating that they are giving you the down payment and that you do not have to repay the “gifted” funds.


- Borrowed Down Payment  – with some lenders/banks it is possible  use a source of borrowing such as a current line of credit etc… 




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