The Hidden Costs of Buying a Home in Calgary (And How to Avoid Them)

Mortgage Broker in Calgary Alberta Canada

So, you’ve finally decided to buy a home in Calgary? Congratulations! It’s a huge milestone, but it can also be exciting, nerve-wracking, and, yes, expensive. While you may have budgeted for your down payment and received a rough CIBC Mortgage Advisor there are several additional costs you may not have considered. These hidden expenses can sneak up on you during the home-buying process, and it’s important to plan ahead to avoid unexpected financial strain. Let’s break it down — the hidden costs of buying a home in Calgary, and how to keep your budget intact.

1. Closing Costs: The “Wait, I Owe What?!” Moment

When the seller accepts your offer, you might feel ready to celebrate — but don’t get too excited just yet. There are still several costs to pay before the keys to your new home are in your hands. The closing costs typically include:

• Legal fees: You’ll need a lawyer to finalize the purchase, and their fees can add up quickly.

• Land transfer & registration costs: These are the costs associated with transferring ownership of the property.

• Appraisal and title fees: You’ll need to pay for the property appraisal and title insurance to ensure the title is clear.

• Adjustments on property taxes: If the seller has already paid property taxes for the year, you’ll need to reimburse them for the portion of the year you’ll be owning the home.

Altogether, closing costs can range from 2-4% of the purchase price of your new home. This means if you’re buying a home for $400,000, you could be looking at an additional $8,000-$16,000 in closing costs. While these costs may seem daunting, a CIBC Mortgage Advisor can help you anticipate these fees upfront, so there are no surprises when it’s time to sign the papers

2. Skipping the Home Inspection? Risky.

In a competitive housing market, you might be tempted to waive the home inspection to make your offer more attractive to the seller. But trust us — this is a risky move. A professional home inspection typically costs around $500, but it can save you thousands in the long run. Without an inspection, you could miss out on critical issues like:

• Water damage: Hidden water damage can lead to costly repairs if left unaddressed.

• Foundation cracks: Structural issues can be a huge headache and a significant expense to fix.

• Faulty electrical systems: Safety hazards like outdated wiring or faulty electrical systems could put your home at risk.

Investing in a home inspection may seem like an additional expense, but it provides peace of mind knowing the true condition of the property. And if significant issues arise, you’ll have room to negotiate with the seller or reconsider your offer.

3. Moving In Is Not Free (Even If You DIY It)

When you finally close on your new home, it’s time to move in — but don’t forget that moving comes with costs. Even if you opt for a DIY move, there are still plenty of expenses to account for, such as:

• Moving trucks: If you don’t have a truck, you’ll need to rent one or hire a moving company.

• Movers: Hiring professional movers can make your life much easier but will add to your costs.

• Deposits for utilities: Setting up services like hydro, gas, water, and internet often requires an initial deposit.

• New furnishings: You might need to purchase furniture, curtains, or other household items to make your new home comfortable.

All of these expenses can quickly add up, so it’s important to budget for your move. Even if you’re trying to save money by doing it yourself, be prepared for the costs involved in getting settled into your new space.

4. Property Taxes, Repairs & The “Adulting” Costs

Once you’re settled into your new home, the ongoing costs of ownership start to roll in. Homeownership isn’t just about making your mortgage payments — it’s also about maintaining and repairing your property. Some of the additional expenses you’ll face as a homeowner include:

• Annual property taxes: Depending on the value of your property, these can be a significant annual cost.

• Regular maintenance: Home maintenance includes things like lawn care, HVAC servicing, and appliance repairs.

• Snow removal: In Calgary, winters can be harsh, and you’ll need to take care of snow removal for your driveway and walkways.

• Repairs: From leaky faucets to roof damage, there will always be something in need of repair, especially as your home ages.

A CIBC Mortgage Advisor can help you factor these costs into your budget so that you’re prepared for the ongoing expenses of homeownership. It’s important to build a buffer in your budget for maintenance and repairs to ensure your home stays in good condition.

5. Breaking Your Mortgage = $$$

Life doesn’t always go as planned. Maybe you want to refinance your mortgage or sell your home early. While it’s possible to do so, be prepared for hefty penalties. Breaking your mortgage early can result in:

• Prepayment penalties: These penalties are fees charged by your lender when you pay off your mortgage early. The amount can vary depending on your mortgage agreement.

If you’re thinking about refinancing or selling your home in the future, it’s important to discuss your options with a CIBC Mortgage Advisor. They’ll explain the terms of your mortgage and help you choose a flexible mortgage product that suits your long-term plans.

Real Talk: You Deserve a Smooth Ride

Buying a home is one of the biggest financial decisions you’ll ever make, and it’s easy to feel overwhelmed by all the costs involved. The last thing you want is to be blindsided by hidden fees or unexpected expenses. That’s where a CIBC Mortgage Advisor comes in. They’ll work with you every step of the way to ensure you’re fully aware of all the costs associated with buying a home and help you budget accordingly