Beyond the down payment, there are numerous costs and fees involved in buying a home. Some are obvious; others surprise buyers who weren't paying attention. Let me detail what you should actually expect to pay beyond the purchase price.
Legal and Title Costs
Your real estate lawyer charges for services rendered. Expect $800–$1,500 in legal fees depending on transaction complexity. Title insurance, which protects against legal claims to the property, costs $150–$300. Land title search and registration fees run $100–$150. These aren't negotiable—they're required and standard across Victoria. The value, though, is significant; a good lawyer catches issues before they become expensive problems.
Property Transfer Tax (The Big One)
As discussed earlier, PTT ranges from minimal (if you qualify for first-time buyer exemption) to substantial. On a $1M home without exemption, PTT is roughly $24,000. Even with careful planning, this is your single largest closing cost. First-time buyers often save $10K–$20K with available exemptions, which is why claiming your exemption status is crucial.
Inspection and Appraisal Fees
Home inspection: $400–$600. Appraisal: $300–$500. Pest inspection (if requested by lender or your own caution): $150–$300. These are professional services that protect you. Don't view them as costs to eliminate—view them as insurance against major problems. A home with a significant pest infestation or foundation issues becomes a very different proposition once you know about it.
Mortgage-Related Costs
If you're putting down less than 20%, mortgage default insurance (also called CMHC insurance) is required. This isn't a small fee—on a $1M purchase with 15% down, insurance can be $30K–$40K, added to your mortgage. Your lender will explain this upfront. Additionally, your lender may charge an origination fee or application fee ($250–$500), which covers their processing costs. Some lenders waive these; others don't. Shop around.
Property Tax and Utility Adjustments
At closing, property taxes and utilities are prorated. If you close midyear and the seller has prepaid taxes, you reimburse them for the portion they won't use. Similarly for utilities. This isn't a fee—it's an adjustment. But it can be $500–$2,000 depending on closing date and property characteristics. Your lawyer calculates this and collects it at closing.
Strata Fees and Building Inspections (For Condos)
For condo purchases, you'll pay for a strata document review (included in legal fees, usually) and sometimes a building inspection specific to common areas. Building inspections run $200–$500 and reveal deferred maintenance affecting the building. For condos, also budget for strata fees to resume on the day after you take possession. Some sellers prepay—if so, you reimburse them. Budget $300–$800 for these adjustments.
Survey Costs
Your lender might require a survey to confirm property boundaries and verify no structures encroach on the property. Surveys cost $300–$800+. Not all properties need surveys, but if the property has unusual features or the lender requires one, you're paying. This is non-negotiable if your lender demands it.
Home Insurance
You'll need home insurance before closing. Your lender requires proof of insurance. Basic home insurance on a $1M Victoria home costs $1,000–$1,500 annually. You might pay the first month or year upfront at closing. Shop around with multiple insurers—rates vary significantly based on home age, condition, and claims history.
Recording and Registration Fees
The province charges fees to register your ownership and record the mortgage. These are typically $100–$200 and are handled by your lawyer. Small but non-negotiable.
Potential Hidden Costs That Emerge Post-Inspection
During your home inspection, issues might emerge: a roof needing replacement in 3–5 years ($8K–$15K), outdated electrical panel ($2K–$4K), or water intrusion signs ($2K–$10K). You can negotiate seller credits or repairs, request price reductions, or walk away. Budget $1K–$5K for post-inspection surprises. If the inspection reveals major problems, your negotiating power increases significantly in a balanced market.
Ways to Reduce Closing Costs
Negotiate with the seller to cover certain costs or provide credits. If the inspection reveals issues, request seller repairs instead of cash credits—this saves you money and ensures proper work. Shop around for lenders, as some charge lower origination fees. Confirm your first-time buyer status to save PTT. Consider asking the seller to prepay property taxes (you'd reimburse a smaller amount). These aren't huge savings individually, but combined they can reduce closing costs by $2K–$5K.
I'm Dan Juricic, a REALTOR® with RE/MAX Camosun. If you have questions about the Victoria market, I'd love to help. Call or text me at [phone] or visit danjuricic.com.