Buying a home in Calgary is an exciting milestone—but many first-time and even repeat buyers are surprised by the hidden costs that come along with the purchase. Beyond your down payment and mortgage, here are the expenses you should plan for to avoid financial surprises.
1. Home Inspection Fees
Before you commit, a home inspection is essential. In Calgary, inspections typically cost $400–$700, depending on the property size and whether you add services like radon or mold testing. While it feels like an extra expense, it can save you from costly surprises later.
2. Legal Fees and Disbursements
Hiring a real estate lawyer is required to complete the purchase. Expect to budget $1,000–$2,000 for legal services, title registration, and other disbursements.
3. Property Tax Adjustment
If the seller has already paid property taxes for the year, you may need to reimburse them for the portion covering the time you’ll own the home. This is a cost buyers often forget to budget for at closing.
4. Mortgage Insurance (If Applicable)
If your down payment is less than 20%, you’ll need CMHC mortgage insurance. This premium is added to your mortgage and can amount to thousands of dollars depending on the loan amount.
5. Moving Costs
From hiring movers to renting trucks and storage units, moving can easily cost $500–$2,000 depending on distance and services.
6. Utility Hookups and Adjustments
Gas, water, electricity, and internet all come with setup fees. In Calgary, utility companies often require deposits for new accounts, especially if you’re a first-time homeowner.
7. Home Insurance Premiums
Lenders require proof of home insurance before releasing mortgage funds. Premiums vary but average around $1,200 annually for Calgary single-family homes.
8. Immediate Repairs or Upgrades
Even if the home is move-in ready, you may want to budget for paint, locks, appliances, or minor repairs. Many new homeowners spend $2,000–$5,000 in the first year just making the home feel like their own.
9. Condo Fees (If Applicable)
Buying a condo in Calgary? Monthly condo fees can range from $300–$700 (or higher in luxury buildings). These cover maintenance, insurance, and amenities—but can add significantly to your monthly expenses.
10. Ongoing Maintenance Costs
As a homeowner, you’ll be responsible for upkeep. A good rule of thumb is to budget 1–3% of your home’s value per year for maintenance and repairs.
Final Thoughts
While these hidden costs can add up, knowing them in advance helps you plan realistically and avoid financial stress. When budgeting for your Calgary home purchase, add a cushion for these expenses so you’re fully prepared.
Thinking of buying in Calgary?
Contact Ray Yang to get personalized guidance on navigating the true costs of homeownership—and to find a property that fits your budget and lifestyle.
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