There are 2 sets of costs to consider

1/ The Initial Costs for Down Payment , 'Closing Costs' ( Lawyer, Ontario Land Transfer Tax, Toronto Land Tax where applicable, and any Appraisal or Mortgage Fees) plus Moving Expenses and any necessary Repairs and Improvements to the new home

A Down-payment of at least 20% of the Purchase Price allows a 'conventional mortgage' with no fees added to it for Mortage Default Insurance.

A Down-payment as low as "Zero" is possible for those with Good Credit and Good Income but Limited Cash however the additional Interest costs are very substantial and there are stricter limits to the Amortization period so monthly payments are further increased.This should be avoided wherever possible

Many people, including most 'First-Timers' make a Down-payment of between 5% and 15%.

This is considered a High-Ratio or High-Loan-To-Value Mortgage and requires Mortgage Default Insurance . This operates on a sliding scale which decreases as the Down-payment increases. The cost of this Insurance is added to your Mortgage Principal with the P.S.T on it and an Appraisal Fee by the Insurer added to your "Closing Costs"

You can check current rates at the CMHC (Canada Mortgage & Housing Corp) Site

Ontario Land Transfer Tax is based on the Property Value ,approximately as follows :

$100,000 Value $725 Tax

$200,000 Value $1725 Tax

$300,000 Value $2975 Tax

$400,000 Value $4475 Tax

$500,000 Value $6475 Tax

$1,000,000 Value $16475 Tax

City of Toronto Land Transfer Tax is an additional amount equal to the Ontario Land Tax

However New Home Buyers paying $400,000 or less are exempt and a corresponding reduction is made for New Home Buyers paying over $400,000

Lawyers Fees vary and are often quoted as X Hundred Dollars 'plus disbursements' . Some include Registering a Mortgage in their basic quoted rate; some don't . Allow about $1100 altogether plus about $400 for a CMHC Appraisal Fee if the Mortgage is High Ratio

Moving Expenses will also vary according to distance and quantity to be moved. Many first time buyers will opt to rent a truck and do this themselves. Even so allow a few hundred $

Repairs and Improvements Costs will depend on what needs to be done and you will need to distinguish between what is needed right away and what can wait. If funds are tight you should be cautious about buying a property that needs immediate work. Unless the repair costs can be built into the price you may be better off to buy a slightly more expensive property that doesn't need much extra cash spent in the short term.

2/ The Ongoing Costs for Mortgage Principal and Interest, Property Taxes, Utilities , Insurance , Repairs and Maintenance and Fees if the property is a Condo

Most Lenders suggest that the total of your Mortgage Payment, Property Taxes and Utilities should be no more than 32 percent of your Gross income. This is called your GDS, or Gross Debt Service ratio.

The total of your Housing Costs plus any other Consumer Debt payments such as Car Loan, Minimum Credit Card Payment etc is called your TDS or Total Debt Service Ratio and should not exceed 38% of Gross Income.

Your Buyer Agent can help you determine what your Mortgage Payment would be according to Price and Down Payment and can tell you what your new Property Taxes would be based on the Location and Price that you pay. He will also be able to estimate Utility Costs based on the size, age and condition and to identify typical maintenance costs, insurance costs and/or fees.

Every person's situation is unique so feel free to ask for a complete summary of the exact Initial Costs and Ongoing Coststhat would apply to the type of property you are considering. Also ask about allowable sources of funds such as RRSPs and any relevant Government assistance programs in your area .Just e-mail paul@buyerscall.com