Did you know that when you buy a property, you must have money set aside to cover start-up costs? Your down payment and mortgage payments are not the only costs involved, so it’s wise to have some additional savings set aside that can be used for your additional expenses.

These expenses should not be taken lightly and some mortgage lenders will even check that you have these funds available before granting you a loan. Mortgage loans are calculated based on the value of your home and, therefore, cannot be used to pay these additional costs.

Here is a list of common start-up costs:

1. Property inspection and evaluation
2. File processing fee for mortgage insurer as well as any taxes on the premium
3. Notary fees
4. Adjustment costs determined by the notary (electricity, heating, municipal and school taxes, equipment rental contract, etc.)
5. Property transfer tax (welcome tax)
6. Moving expenses
7. Service and utilities hook-up fees (phone, electricity, etc.)
8. Decorating (paint, curtains, etc.)