Hidden Costs of Buying a Home in Milton (That Buyers Often Forget!)

1. Land Transfer Tax – A Big One-Time Expense

What is it?
Every time you buy a property in Ontario, you need to pay a Land Transfer Tax (LTT). It’s calculated as a percentage of the home’s purchase price and must be paid at closing.

How Much Will It Cost?
For a home priced at $1,000,000, the land transfer tax in Ontario would be:

Example:
For a $1,000,000 home, you’d pay around $16,475 in land transfer tax.

📌 Are There Any Discounts?
✅ First-time home buyers can get a rebate of up to $4,000, reducing this cost.

💡 Tip: Factor this into your closing budget before making an offer.

2. Home Inspection – A Smart Investment

📌 What is it?
A home inspection is an in-depth check of the property to identify any structural, electrical, plumbing, or roofing issues before you finalize your purchase.

📌 How Much Does It Cost?
🔹 $400 – $800 (depends on home size & inspector experience)

📌 Is It Worth It?
✅ Yes! A home inspection can reveal costly hidden problems (foundation issues, mold, or outdated electrical systems) that could cost thousands to repair.

💡 Tip: Always get a home inspection, even if the market is competitive. It can save you money in the long run.

3. Legal Fees – A Must for Closing

📌 What is it?
A real estate lawyer helps ensure your home purchase is legally sound, reviewing contracts and handling the closing process.

📌 How Much Does It Cost?
🔹 $1,500 – $2,500 (includes title search & registration)

📌 Why Do You Need It?
✅ A lawyer protects you from legal issues with the title, contracts, and property taxes.

💡 Tip: Ask your real estate agent for a trusted lawyer referral to ensure smooth closing.

4. Mortgage Default Insurance (If Your Down Payment is Under 20%)

📌 What is it?
If you put down less than 20%, you’ll need CMHC Mortgage Default Insurance, which protects the lender in case you default on your mortgage.

📌 How Much Does It Cost?
It depends on your down payment percentage:

📌 Example:
For a $900,000 home with a 10% down payment ($90,000), your CMHC insurance would be around $23,000, added to your mortgage.

Note: This is not money up front out of your pocket, but it is added on top of your mortgage amortized over 25 years.

✅ Avoid this cost by putting down at least 20%!

5. Property Taxes – An Ongoing Cost

📌 What is it?
Every homeowner in Milton must pay property taxes to fund local services like schools, roads, and emergency services.

📌 How Much Does It Cost?
🔹 Approx. .5% of your home’s value per year
🔹 For a $1,000,000 home, expect to pay around $5,000 per year

💡 Tip: Some mortgages allow you to include property tax payments in your monthly mortgage, making budgeting easier.

6. Home Insurance – Required by Lenders

📌 What is it?
Home insurance protects your property against fire, theft, and damage. Mortgage lenders require you to have a policy before closing.

📌 How Much Does It Cost?
🔹 $800 – $1,200 per year, depending on the size and location of your home.

✅ Get quotes from multiple insurers to find the best rate.

7. Moving Costs – The Final Expense Before Settling In

📌 What is it?
The cost of hiring movers, renting trucks, and setting up utilities can add up.

📌 How Much Does It Cost?
🔹 DIY move: $300 – $700 (truck rental & gas)
🔹 Professional movers: $1,500 – $3,500 (depends on home size & distance)

💡 Tip: Book movers early to get better rates, especially during peak moving seasons (spring & summer).

Total Estimated Hidden Costs of Buying a Home in Milton

📌 Final Tip: Budget an extra 2% – 3% of the purchase price for hidden costs to avoid surprises.

Your agent can and should provide you with the exact closing cost for you before you put an offer on the property. This not only avoids any last-minute panic but it is also a sign of good representation. 

📞 Thinking about buying? Let’s chat! Book a call today to plan your home purchase the right way.