The Down Payment Is Only the First Cheque: 7 Costs to Budget Before Buying

Saving for a down payment gives you a finish line. You can set the target, watch the balance climb and know the day you hit it. What that number can't tell you is whether, the month after you get the keys, there's still room for groceries, childcare and the car repair that always arrives in the same week as everything else.

If you've watched your savings grow and still wondered whether buying would leave you stretched every month, that uncertainty deserves its own budget. Start by splitting every cost into two piles: cash you need on or before completion day, and money that keeps leaving your account once you've moved in. As you work through the seven items below, mark each one upfront, recurring or reserve. That way the cash to close never gets mixed up with what you can afford month to month.

Five costs to price before you complete the purchase

1. Confirm your property transfer tax before counting on an exemption. BC charges 1% on the first $200,000 and 2% on the portion above that, up to $2 million. On an illustrative $600,000 home, that's $2,000 plus $8,000, or $10,000. Eligible first-time buyers purchasing a qualifying home worth up to $835,000 can be exempted on the first $500,000, which is worth up to $8,000. The same $600,000 purchase would still owe about $2,000 on the slice above $500,000. If you're buying new construction, ask about GST and any rebate you might qualify for. Resale tax rules don't apply there.
2. Ask a lawyer or notary for a written estimate. It should include registration fees, title insurance where it applies, and adjustments, such as property taxes the seller has already prepaid. Adjustments catch buyers off guard because they show up on the statement only days before completion.
3. Price the inspection before you write the offer. Then ask whether your lender requires an appraisal and who pays for it.
4. Get a home insurance quote early. Your lender will want proof of coverage before funding, and premiums vary by property. This is separate from mortgage default insurance, which is generally required when you put down less than 20%. The CMHC premium at 10% down is 3.10% of the mortgage. Take an illustrative $600,000 home with $60,000 down. The $540,000 mortgage carries a $16,740 premium. It's usually added to the mortgage, so you won't pay it in cash, but you'll pay interest on it for years.
5. Budget for moving and setup. That means movers or a truck, utility connection charges or deposits, and the essentials for the first week. Furnishing every room can wait.

Two costs that decide whether the home stays affordable

6. Build your monthly ownership total from the actual property. Use its real property taxes, its utility history and, for a condo or townhouse, the strata fee. Read what that fee covers. Add the insurance quote from item 4. If your lender collects property taxes with your mortgage payment, count them once. Then compare the full total against your take-home pay, the same money that currently covers your rent.
7. Set aside a repair cushion in its own account. Size it from the home's age and what the inspection found. For strata properties, review the contingency reserve fund and the meeting minutes for hints of a special levy. Keep this money apart from your down payment and closing funds, so a failed water heater in the first winter doesn't go straight onto a credit card.

Being ready to buy means having enough cash to complete the purchase and enough room in your budget to own the home afterward. A mortgage approval tells you what a lender will advance under its rules. It doesn't know about your daycare bill, your commute or what you'd like to save each month. Only your own numbers do.

The real goal is keeping some breathing room after you have the keys. Pick one listing you already like. Sketch its upfront column and its monthly column, then decide whether it fits.