Closing costs: what buyers often forget to budget for
Plain-language guidance to help you budget and avoid surprises.
What counts as closing costs?
Closing costs are one-time costs paid to complete a purchase, beyond the down payment. They vary by jurisdiction and transaction type, but most buyers face several of these categories.
- Legal / conveyancing fees and disbursements
- Title-related costs (title insurance or other protections, where used)
- Inspection costs (home inspection, specialized inspections as needed)
- Appraisal fees (sometimes required by lenders)
- Government or municipal fees (registration, land transfer tax, etc., where applicable)
- Adjustments at closing (property tax, utility, or condo fee adjustments)
- Moving and setup costs (moving, storage, utility hookups)
How to budget without guessing wrong
Ask for a written estimate early. Separate “known” costs (quoted legal fees) from “variable” costs (tax adjustments, moving).
Keep a buffer so small surprises don’t become emergencies.
Practical tip If you’re comparing two properties, compare them on “all-in monthly cost” and “all-in closing cost,” not just the purchase price.
If you’re buying a condo
Condos can add document review costs and have ongoing fees that affect affordability. Also watch for special assessments and reserve fund health.
- Document review (rules, budgets, reserve fund studies, meeting minutes)
- Move-in/out fees or deposits (where applicable)
- Higher insurance requirements in some buildings