Whether you are considering buying your first house or are looking for a bigger one, there a many expenses over and above the purchase price that you need to plan for right from the moment you start looking for a house. These additional costs can take you by surprise and turn the signature of the contract into a nightmare if you are not well informed and prepared to deal with them.

Some of these costs are to be paid only once while others might be on a monthly or annual basis, and are over the ones you expected to pay. All these costs do not apply to all situations but it’s better to know what they are ahead of time in order to prepare a realistic and complete budget.

Remember that buying a house will constitute the central point of your financial situation.

Whether it’s your first, second or tenth house, several details must be considered all along the process. The last things you need are unplanned expenses that are revealed to you too late in the process, meaning at the moment of taking possession of your new house.

Read the list of the following items carefully and make sure you include everything in your budget while planning the purchase of a house.

The last things you need, are unplanned expenses revealed to you too late in the process, meaning at the moment of taking possession of your new house.

You’ve found your dream house?

Remember to notify current service providers prior to moving and to take action as required when settling into your new location.

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Expenses to allow for when signing before notary

  • Deposit to accompany Offer to Purchase
  • Tax redistribution and refunds:Refunds are calculated from the date of the signing of the deed of sale. You are responsible for reimbursing the seller for the number of days paid to date:
  1. Municipal taxes
  2. School taxes
  • Heating oil tank :The seller is required to have the tank filled on the day of the signing of the deed of sale and submit the invoice to the notary for reimbursement in full by the buyer.
  • Electricity meter (Hydro Québec)The buyer and the seller must notify Hydro Québec of the date the property is scheduled to change hands, have the meter read, and ensure that all amounts owing are properly allocated.
  • Homeowner insurance :Upon signing of the deed of sale, you must present proof that you have contracted homeowner’s insurance in an amount equal to or greater than the mortgage on the property.
Expenses to allow for after having signed the deed of sale

  • Land transfer or welcome tax :The municipality in which you settle will bill you within four (4) to six (6) months of the signing of the deed of sale in an amount based upon the selling price and scaled as follows:
    • 0.50 % of amounts up to $50,000
    • 1.00 % of amounts between $50,000 and $250,000
    • 1.50 % of amounts exceeding $250,000
  • Moving, painting, interior and exterior decoration, etc.
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