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.)
Step 1: 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: During the Conditional Period
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: A Few Days Before Possession (The Big Payment)
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.
Step 4: Possession Day and the First Week
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.
The Simple Way to Plan
Buying a home doesn’t require one payment — it requires four waves of payments:
- Deposit after acceptance
- Inspection and appraisal during conditions
- Closing funds to the lawyer
- 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.
