The price and down payment are only part of the cash required. Planning costs before visiting homes helps protect the reserve intended for contingencies, moving and early repairs.
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Key takeaways
- Cash available for the down payment does not automatically cover other costs.
- Plan for the pre-purchase inspection, notary fees and, depending on the file, specialized assessments, a lender-required appraisal or mortgage loan insurance.
- The land transfer duty, often called the welcome tax, is collected by the municipality.
Organize cash needs by payment date
Cash available for the down payment does not automatically cover other costs. Prepare three separate budgets and record the confirmed amount, estimate and payment date to verify for each expense.
- Before closing : inspection and any specialist assessments; confirm fees and payment terms with the professionals.
- At closing : down payment, fees and adjustments according to the notary’s statement; also verify any amounts required by the lender.
- After closing : transfer duties according to the municipal bill, moving, maintenance and an emergency reserve.
Costs before and during the transaction
Plan for the pre-purchase inspection, notary fees and, depending on the file, specialized assessments, a lender-required appraisal or mortgage loan insurance. Requirements vary by property and financing.
For a condo, reviewing documents, the contingency fund, maintenance log and potential special assessments is as important as inspecting the unit itself.
Transfer duty and adjustments
The land transfer duty, often called the welcome tax, is collected by the municipality. It is calculated using the taxable basis established by law; the City of Brossard provides a calculator to estimate it for your situation.
At closing, certain amounts already paid by the seller may be adjusted between the parties, such as municipal or school taxes. In Brossard, the water-meter reading may also be used to calculate a transaction adjustment.
Expenses to reserve for after closing
Keep a margin for home insurance, moving, lock changes, essential furnishings, priority repairs and seasonal maintenance. A house and a condo do not require the same reserve.
A prudent budget separates known costs, estimates and an emergency reserve. Amounts should be validated with the lender, notary, inspector and municipality before committing.