Generally speaking, the larger a down payment you’re able to make, the better, because that means you’ll have to borrow less. But you also don’t want to leave yourself so cash-poor you can’t cover all of the other costs that come with closing a sale.

The minimum amount you can put down is 5% of the purchase price, assuming that you have made an offer to purchase and all conditions have been met. For example, a $300,000 property would require a minimum down payment of 5%: $15,000; however, if your down payment is less than 20%, which is the case for many first-time homebuyers, you will also need mortgage loan insurance.

Mortgage loan insurance should not be confused with mortgage life insurance, which protects you in the event something happens to you. This type of insurance might be suitable for a young couple or family where there is only one breadwinner, for example. Costs are usually much cheaper than loan insurance. Obtaining life insurance instead of mortgage life insurance is the best bet.

If your down payment is less than 20% of the purchase price of your home, you are required to have mortgage loan insurance, also known as high-ratio mortgage insurance. It protects your lender — not you — in case you default on your mortgage. Premiums are calculated as a percentage of the amount you put down, changing at the 5%, 10% and 15% thresholds but there is no break for anything in between. Premiums range from 0.5% to 3% and increase if you are self-employed.

So, to buy a $250,000 condo with a 5% down payment of $12,500, a premium of 2.75% on the borrowed amount of $237,500 would total about $6,500. You can pay this in one lump sum or, as many first-time buyers choose to do, you can add it to your mortgage loan amount. This type of insurance is mandatory for high-ratio mortgages, and is only offered through two carriers: CMHC and Genworth Financial.

One important note is that in Ontario and Quebec, the premiums are subject to provincial sales tax, which cannot be added to the loan amount. So, to buy that $250,000 condo in Ontario, it is your responsibility to pay the 8% sales tax on the $6,500 premium, or about $520

Most provinces have such a tax, though it may have a slightly different name (such as property purchases tax), and the rates vary. Alberta, Saskatchewan, and parts of Nova Scotia do not have Land Transfer Tax (LTT) at all, while other provinces use a tiered system. In the tiered systems, the rate varies depending on the purchase price of the house. Your RE/MAX agent or your lawyer can advise what the rate would be for the area you’re considering buying in.

Legal fees for buying real estate range in price, depend on your situation, and must be paid upon closing. When purchasing brand new condos, since such deals can involve more paperwork, the cost might be higher. Your RE/MAX agent can provide you a local lawyer if you don’t already have a relationship with one.

Your mortgage lender will likely require an appraisal to ensure the property is worth what you are offering. The reason is two-fold: it prevents you from borrowing more than a property is actually worth, which might apply in cases where multiple would-be buyers enter into a bidding war; and it protects the lender from lending out more than the home’s value, which becomes critical should you default on the mortgage. If a lender has to foreclose, they want to be able to recoup the entire loan amount, as well as the costs of foreclosing. The fee for such an appraisal is typically between $250 and $350.

You wouldn’t buy a used car without having a trusted mechanic perform an inspection for you, and a house is no different. Don’t even think about buying a home without first having a proper inspection done. In fact, your lender may insist on one to verify the condition of the home.

It’s an excellent way to learn as much as you can about the various systems in the home, from the furnace and plumbing to the electrical and roofing. The inspection may identify some repairs that are essential, which you and your RE/MAX agent can either negotiate into the purchase price or insist be completed before you proceed with the deal.

The cost of an inspection starts from $350.00 and depends on the size, condition, and age of the property. But this is money well spent, and is an expense that you simply cannot, and should not, avoid.

Your mortgage lender will require you to have property insurance in place on closing day. Since the property is actually the security against the loan amount, the lender wants to make sure insurance is in place to cover the cost of replacing the home, and its contents, should something happen.

The fees for insurance vary widely, since they depend on the value of the property. Insurance has become a very competitive business in recent years, with new companies entering the market, offering different products and options. Consider using the services of a broker, whose job is to find customers the best deal possible among the companies they represent. You may also be able to get a discount if you use the same company you have your other insurance policies with

Title insurance is yet another type of insurance you will require. Your lawyer will advise you of this type of protection, which insures you against any defects of title to the property. For example, if the previous owners undertook major renovations of the property without proper permitting, you would be protected against any costs required to bring the house up to code. Typically, this one-time premium costs less than $500.

When you’re totalling up all the costs of buying your first home, don’t forget to include moving expenses and connection fees or deposits for services, such as phone, electricity, and other utilities.

Moving expenses vary widely, depending on your personal circumstances and possessions. As a first-time homebuyer, perhaps you’re moving from an apartment, or even your parents’ home. If this is the case, you may not need the services of a moving company. You could choose the do-it-yourself route and enlist the help of family and friends. If so, ask them or your RE/MAX agent for a referral for a truck rental company they trust, as this is an area of your move that you want to go smoothly. Don’t be fooled by the price! Reliability is key.

If, however, you do contract a moving company, do your homework well in advance; get referrals from your RE/MAX agent and friends and do your own research. Rates and levels of service can vary widely among moving companies, as can insurance coverage, so give yourself lots of time to look into these matters.

Often overlooked are the costs of making sure your services and utilities — such as your phone, electricity, cable TV, and other connections — are up and running for move-in date. Make sure you call well in advance to make these arrangements, and ask about all associated fees. For example, some utility companies require deposits, or charge other fees for new customers with whom they have no billing history.