Beyond the Down Payment: The Closing Costs to Budget For

    September 8, 20266 minute read

    By Lyndsy Pahl, Licensed Mortgage Broker · Serving British Columbia & Alberta · September 2026

    When people save up to buy a home, almost all the attention goes to the down payment — and rightly so, it’s the big one. But there’s a second set of costs that catches buyers off guard if no one warns them: closing costs. Part of my job is making sure you’re never surprised, so let’s walk through what to set aside.

    What “closing costs” actually are

    Closing costs are the one-time expenses you pay to finalize your purchase, on top of your down payment. They’re due around the time your deal closes, and they’re a normal part of every purchase. The trick is simply to plan for them in advance rather than scrambling at the end.

    The main ones to plan for

    • Legal or notary fees. A lawyer or notary handles the paperwork that transfers the home to you and registers your mortgage. Their fee, plus related disbursements, is part of closing.
    • Property transfer tax. When you buy property, there’s typically a tax based on the purchase price. The rules and any first-time-buyer or newly-built exemptions differ between BC and Alberta, which is something we’ll factor into your plan.
    • A home inspection. Optional but wise — a few hundred dollars up front can save you from an expensive surprise later.
    • An appraisal, if your lender requires one to confirm the property’s value.
    • Title insurance, which protects against certain title-related issues.
    • Adjustments, reimbursing the seller for things they’ve prepaid, like property taxes, for the portion of the year you’ll own the home.
    • Home insurance, which you’ll need in place by closing.

    A useful rule of thumb

    Many buyers are advised to set aside a cushion of roughly a few percent of the purchase price to cover closing costs, though the real figure depends on your price, your location, and your specific transaction. Rather than guess, I’ll help you build a realistic estimate for your purchase so the number isn’t a mystery.

    Don’t forget the “move-in” costs

    Separate from closing costs, remember the practical costs of actually settling in: movers, immediate repairs, appliances, or furnishings. Building a small buffer for these keeps the excitement of a new home from turning into month-one financial stress.

    Planning beats surprises

    None of this should scare you off — it’s all completely manageable when you see it coming. That’s exactly why we plan your full budget together, not just your mortgage. When I take you through the numbers up front, closing day becomes a formality, not a shock. Let’s make sure you’re ready for the whole picture.

    Want a clear, all-in budget before you buy? Let’s build it together. I’m your advocate, and I work for you — not the banks.

    ☎ (604) 762-0762 | ✉ lyndsy@theplacetomortgage.com
    Apply online: r.mtg-app.com/lyndsypahl | mortgagewithlyndsy.com

    This article is general information for buyers in British Columbia and Alberta as of September 2026 and isn’t financial advice for your specific situation. Taxes, exemptions, and fees vary by province and transaction — reach out for an estimate tailored to your purchase.