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Estimated Cost of Purchasing a Home in the GTA Might Surprise You

Burlington real estate for sale Jamie Vieira Prince William Drive

Purchasing and operating a home in the GTA is an expensive undertaking. People who have not purchased before may be surprised by all the costs, both up front and ongoing.

Here's an estimated breakdown of the costs involved with buying a $400,000 home:

Initial Costs:

  • Down Payment (10%): $40,000
  • Legal / notary fees: $1,300
  • City Land Transfer Tax: $4,475
  • Provincial Land Transfer Tax: $3,375
  • Moving expenses: $1,000
  • New furnishings: $2,500
Total Initial Costs: $52,650

Ongoing Costs:
  • Mortgage: $1,662 / month
  • Property taxes: $3,171.69 (or $264 / month)
  • Utilities: $300
  • Maintenance: $100

Total Ongoing Monthly Costs: $2,326

As you can see, the costs associated with home ownership add up quickly, and this is assuming you are purchasing a $400,000 home. These days it seems like that is a low price for a home in the Greater Toronto Area. As a rule of thumb, ensure that you overestimate the costs you expect to encounter, so that you have a buffer and don't find yourself scrambling or increasing your debt.

As Farhaneh Haque, director of mortgage advice with TD Bank says, "First-time home buyers are so emotionally charged that they forget the cost of the house isn't just what they need to account for. There are ancillary costs you need to budget and save for." Good advice if I've ever heard any.

Thanks very much for reading. As always, if you would like to discuss your current real estate situation, I would love to offer my expert knowledge of the Oakville and Burlington markets. You can reach me at 905 845 9180, or by email at jamie.vieira@century21.ca. 

Sincerely,

Oakville Burlington Real Estate Agent

Jamie Vieira, Sales Representative
Century 21 Miller Real Estate Brokerage Ltd.
Independently Owned and Operated
905 845 9180
jamie.vieira@century21.ca
www.jamiesells.ca



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