You find a beautiful house online, you walk in, fall in love instantly, start imagining your furniture in the living room… and very quickly you’re thinking, “Let’s make an offer!” ✍️
But between the price shown on the listing and the amount that actually leaves your bank account, there’s often a big difference. That difference is made up of the hidden costs of buying a house — real expenses that are rarely explained clearly at the beginning. The result? Many buyers feel caught off guard at the notary’s office (or when the famous welcome tax bill shows up unexpectedly 😅).
This guide breaks everything down in a simple and human way. We’ll go through:
- home-buying fees and every cost you must plan for,
- notary fees and what they actually cover,
- property taxes, welcome tax, adjustments, and more,
- common traps to avoid,
- and even the seller’s costs so you get the full picture.
If you prefer clear explanations with a friendly tone and zero jargon, you’ll also enjoy my other real estate articles 😉.
🧭 Table of Contents
- What costs should you expect when buying a house?
- What traps should you avoid when buying real estate?
- What are the fees when buying a house?
- What are the costs associated with selling a home?
- Summary table of the main fees
- Useful information boxes
- FAQ – Most common questions
What costs should you expect when buying a house? 💸
This is the #1 question buyers ask — and it’s also one of the most Googled: “What fees should I expect when buying a house?” We all wish there was one simple magic number… but in reality it depends on the municipality, the property type, your financing and your buying strategy.
To give you a realistic range, organizations like Multi-Prêts and National Bank both highlight that buyers should expect to pay around 3% to 5% of the purchase price in fees.
So if you’re buying a $400,000 home, your real total might look more like $412,000 to $420,000 once everything is included. These amounts should never be a surprise — they should be planned for from the beginning.
Lenders rarely call these “hidden fees” — for them, they’re normal. But for buyers, anything unexplained feels like a surprise. Knowing them early avoids stress later.
Main categories of home-buying fees
- Professional fees: notary, inspector, appraiser if needed.
- Property taxes: welcome tax, municipal and school tax adjustments.
- Financing fees: mortgage insurance, bank fees, pre-payments.
- Practical fees: moving costs, small renovations, service connections.
Let’s dig into each one so you know exactly what to expect and how to budget properly.
What traps should you avoid when buying real estate? ⚠️
Another highly searched question: “What are the traps to avoid when buying a home?” This is where an experienced broker can make a huge difference because the trap is rarely the big obvious thing — it’s usually the small detail no one noticed.
Trap #1: Focusing only on the sale price
Buyers often celebrate a good negotiation: “We got $15,000 off the price, amazing!” 👏 But once you add:
- a higher-than-expected welcome tax,
- a new certificate of location,
- $8,000 in urgent repairs after inspection,
- mortgage insurance,
- interest adjustments,
The final amount may be higher than you thought — even with a good negotiation.
Trap #2: Underestimating the true condition of the house
A home can be beautifully staged but hide:
- a roof near the end of its lifespan,
- a failing French drain,
- water infiltration behind a wall,
- a shifting foundation.
An inspection isn’t an extra cost — it’s protection.
Trap #3: Ignoring servitudes (rights-of-way)
Maybe you want a garage, pool or extension someday. But if there’s a servitude from Hydro, a shared access, or specific setbacks, your plans might not be possible.
Always review the certificate of location early. A single line on a plan can change everything.
Trap #4: Only planning for the first year
A mortgage payment might feel comfortable today… but:
- rate increases,
- major repairs in the next 3–5 years,
- tax increases,
can change your situation quickly. I always encourage buyers to look beyond year one.
What are the fees when buying a house? (Full breakdown 🧾)
1. Notary fees
Notary fees cover:
- the deed of sale,
- the mortgage deed,
- title searches,
- land registry publication,
- adjustments between seller and buyer,
- managing funds.
2. Welcome tax + other property taxes
The welcome tax (transfer tax) surprises many buyers. It’s based on the sale price and billed weeks after moving.
You must also account for:
- municipal taxes (adjusted at the sale date),
- school taxes,
- and certain municipal service fees depending on the area.
3. Pre-purchase inspection
Beyond the general inspection, extra tests may include:
- French drain camera inspection,
- structural evaluation,
- thermography,
- radon, pyrite, water quality tests.
4. Financing and insurance
- Mortgage application fees,
- transfer fees,
- penalties if switching lenders,
- mortgage insurance if down payment < 20%,
- home insurance (must be active before signing).
5. Moving + first-year expenses
- movers or truck rental,
- packing materials, storage,
- connection fees for telecom and utilities,
- painting, small repairs, décor, furniture, appliances.
I always help my clients create a first-year budget to avoid financial stress once they move in.
If you want real examples based on actual listings in your area, you can browse my properties for sale.
What are the costs associated with selling a home? 💼
1. Real estate broker fees
This includes:
- market analysis,
- professional photos, staging guidance, marketing,
- managing visits and calls,
- negotiating offers,
- assisting through inspection and financing,
- support up to the notary.
2. Certificate of location
If the existing certificate doesn’t reflect current conditions, a new one is required.
3. Notary fees (seller side)
- mortgage discharge fees,
- corrections or declarations needed,
- tax adjustments.
4. Pre-listing improvements
- painting, repairs, touch-ups,
- staging, exterior improvements, landscaping.
Summary Table of the Main Fees
| Fee Type | Description |
|---|---|
| Notary Fees | Legal documents, title validation, registry publications, adjustments. |
| Inspection | General inspection, thermography, drain camera. |
| Property Taxes | Welcome tax, municipal/school adjustments. |
| Financing & Insurance | Mortgage insurance, bank fees, home insurance. |
| Moving & Setup | Movers, service activation, first-year improvements. |
Information Boxes & Support 🤝
My job isn’t just unlocking doors — it’s breaking down every line on the paperwork. To learn more about my approach:
Why choose me as your broker.
FAQ – Common Questions About Hidden Fees
How much should I budget beyond the purchase price?
Generally between 3% and 5% of the home price, covering notary fees, inspections, taxes, adjustments, insurance and moving expenses.
Do all fees need to be paid upfront?
No. Some are paid directly (inspection, notary), while others (like mortgage insurance) may be financed. Knowing which require cash is key.
How do I avoid surprises?
Start with the real final cost, not the listing price. Build a complete budget and review every item before submitting an offer.
Do selling costs affect buyers indirectly?
They can. A seller with high expenses may be less flexible during negotiations.
For more helpful and friendly real estate content, visit the real estate blog. And if you’re buying or selling, I’d be happy to guide you with transparency, humour and zero pressure.
