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Upfront Costs of Buying a Home in Canada: What You Pay and When

February 13, 2026

A mortgage broker explains the real upfront costs of buying a home in Canada, including deposits, closing costs, taxes, and how much cash buyers need.
Upfront Closing Costs in Alberta

One of the biggest surprises for buyers isn’t the mortgage payment — it’s how many different times money leaves your account before you get the keys.

Most people plan for the down payment, but buying a home actually happens in stages. Different expenses come up at different times, and if you’re not prepared for the timing, it can feel stressful even when you can afford the home.

Here’s what the real payment timeline looks like. (Scroll to the bottom to see the chart.)

Quick answer: Buying a home means paying in four waves: a deposit of about $5,000 to $20,000+ within days of an accepted offer (it counts toward your down payment), a home inspection of $400 to $700 and sometimes an appraisal of $300 to $600 during the conditional period, your closing funds to the lawyer a few days before possession, and move-in costs after you get the keys. On top of the down payment, most buyers should have about 1.5% to 4% of the purchase price available.
$5K–$20K+
Deposit after acceptance
$400–$700
Typical home inspection
1.5%–4%
Of price, on top of the down payment
4
Waves of payments before move-in

Step 1: What do you pay right after your offer is accepted?

Within a few days of acceptance, you’ll need to provide a deposit to the realtor.

This is typically between $5,000 and $20,000+, depending on the price of the property and market conditions. The deposit is held in trust by the real estate brokerage.

The important part: this is not an extra cost. It becomes part of your down payment on closing. But you do need to have this cash ready immediately, and many buyers forget to plan for that.

Step 2: What do you pay during the conditional period?

A buyer hands cash to a smiling home inspector holding a clipboard, with a ladder and a house with a garage behind them
The inspector is paid directly, before closing — so this is cash you need on hand while the deal is still conditional.

While the purchase is still conditional, you’ll complete your due diligence on the property and financing.

This is when you usually pay for a home inspection. Most inspections cost between $400 and $700 and are paid directly to the inspector.

Sometimes the lender will also require an appraisal, especially if you have a smaller down payment or the property is unusual. Appraisals typically cost $300 to $600.

These are upfront expenses and are separate from your closing costs.

Step 3: What is the big payment a few days before possession?

A few days before possession, your lawyer will send you a statement of adjustments showing exactly how much money you must provide. This is usually paid by bank draft or wire transfer. This single payment actually includes several different costs combined together.

First is the remainder of your down payment after the deposit is credited.

Next are the closing costs. These include legal fees, title insurance, and land transfer or registration charges.

  • Legal fees are commonly $1,200 to $2,500
  • Title insurance is typically $250 to $500
  • Transfer or registration costs vary by location and price but often range from a few hundred dollars to several thousand.

If your down payment is under 20%, your mortgage insurance premium is added to your mortgage, but the tax on that insurance must be paid in cash at closing. This usually ranges from about $800 to $3,000.

You may also reimburse the seller for prepaid expenses such as property taxes, condo fees, or heating fuel. These adjustments commonly add another $500 to $3,000 depending on the time of year.

In total, most buyers should plan to have about 1.5% to 4% of the purchase price available in addition to their down payment.

Alberta note: Alberta has no land transfer tax — buyers here pay land title and mortgage registration fees instead, which are based on the property value and the mortgage amount. The provincial sales tax on the mortgage insurance premium applies only in Ontario, Quebec and Saskatchewan, so Alberta buyers with less than 20% down don’t pay that tax in cash at closing.

Step 4: What do you pay on possession day and the first week?

A laughing couple holds up a set of house keys beside stacked moving boxes while movers unload a truck behind them
Getting the keys isn’t the last expense: moving and setup costs can add anywhere from a few hundred dollars to several thousand.

Once you receive the keys, there are still a few unavoidable expenses.

Moving costs vary widely but often run from about $300 to $3,000+ depending on whether you hire movers.

Then come the small setup costs that nearly everyone forgets. Rekeying locks, window coverings, cleaning supplies, basic tools, and internet setup typically add another $200 to $2,500+. Some homes also need appliances right away, which can add several thousand more.

These aren’t mortgage costs, but they are very real upfront expenses.

What’s the simplest way to plan for upfront home buying costs?

Buying a home doesn’t require one payment — it requires four waves of payments:

1

Deposit after acceptance

2

Inspection and appraisal during conditions

3

Closing funds to the lawyer

4

Move-in expenses after possession

If you understand the timing ahead of time, the process feels much smoother and far less stressful.

If you want, I can help you calculate your exact cash requirement before you start shopping so you know your comfortable price range with confidence.

Chart titled Upfront Home Buying Costs (Canada) listing each cost, its typical amount, when you pay it and why, with a rule-of-thumb box
The whole timeline on one page — the rule of thumb is your down payment plus 1.5% to 4% of the price in extra cash.

How an Alberta mortgage broker helps you plan your upfront costs

Knowing the timing is half the battle. Here’s how we help you have the cash ready at each stage:

  • We work out your exact cash requirement — down payment plus closing costs — before you start shopping.
  • We flag when a lender is likely to require an appraisal so it isn’t a surprise during conditions.
  • We confirm which costs apply in Alberta (title and mortgage registration, not land transfer tax).
  • We set your comfortable price range so the deposit, closing funds and move-in costs all fit.
  • We work with buyers across Calgary, Edmonton and all of Alberta.

Know your real cash requirement before you shop

Let’s calculate your down payment, closing costs and a price range you’re comfortable with — before you write an offer.

Apply Online → Book a Discovery Call → Serving Calgary, Edmonton & all of Alberta · Mortgages for Less with INDI Mortgage

Upfront costs of buying a home: common questions

How much cash do I need to buy a home besides the down payment?
Most buyers should plan to have about 1.5% to 4% of the purchase price available in addition to their down payment. That covers closing costs such as legal fees and title insurance, registration charges, adjustments with the seller, plus the inspection, appraisal and move-in costs.
How much is the deposit when my offer is accepted?
The deposit is typically between $5,000 and $20,000+, depending on the price of the property and market conditions. It’s due within a few days of acceptance and is held in trust by the real estate brokerage.
Is the deposit an extra cost on top of my down payment?
No. The deposit becomes part of your down payment on closing. But you need to have that cash ready immediately after your offer is accepted, and many buyers forget to plan for it.
How much does a home inspection and appraisal cost?
Most home inspections cost between $400 and $700 and are paid directly to the inspector during the conditional period. If the lender requires an appraisal — often with a smaller down payment or an unusual property — it typically costs $300 to $600. Both are separate from your closing costs.
What’s included in the payment to my lawyer before possession?
A few days before possession, your lawyer sends a statement of adjustments. The single payment covers the rest of your down payment after the deposit, legal fees (commonly $1,200 to $2,500), title insurance (typically $250 to $500), transfer or registration charges, and adjustments to reimburse the seller for prepaid property taxes, condo fees or heating fuel (commonly $500 to $3,000).
Do Alberta buyers pay land transfer tax or tax on mortgage insurance?
No to both. Alberta has no land transfer tax — buyers pay land title and mortgage registration fees instead. Provincial sales tax on the mortgage insurance premium is charged only in Ontario, Quebec and Saskatchewan, so Alberta buyers with less than 20% down don’t pay it at closing.
What costs come up after I get the keys?
Moving often runs about $300 to $3,000+ depending on whether you hire movers. Setup costs like rekeying locks, window coverings, cleaning supplies, basic tools and internet typically add $200 to $2,500+, and some homes need appliances right away, which can add several thousand more.

This article is general information for Alberta homebuyers, not financial, mortgage, tax or legal advice. Cost ranges are typical estimates and vary by property, price, location, lender and service provider; your lawyer’s statement of adjustments shows your exact closing figures. Any mortgage is subject to lender approval. Please speak with a licensed mortgage professional about your specific situation. Mortgages for Less with INDI Mortgage.

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