Buying a home is one of the most significant financial decisions you will ever make, and understanding the full cost picture is essential before you start your search. Greater Moncton remains one of the most affordable housing markets in Canada, but there are costs beyond the purchase price that every buyer needs to plan for.
Down Payment
In Canada, the minimum down payment depends on the purchase price of the home. For properties under $500,000, the minimum is 5% of the purchase price. For homes between $500,000 and $1,499,999, you need 5% on the first $500,000 and 10% on the remaining amount. Properties at $1,500,000 or above require a 20% down payment.
For a typical Greater Moncton home priced around $350,000, the minimum down payment would be $17,500. However, putting down more than the minimum can reduce your mortgage insurance premiums and monthly payments.
Mortgage Insurance (CMHC)
If your down payment is less than 20% of the purchase price, you will need to pay mortgage default insurance through CMHC, Sagen, or Canada Guaranty. The premium ranges from 2.8% to 4.0% of the mortgage amount, depending on the size of your down payment. This is typically added to your mortgage balance and paid over the life of the loan.
Closing Costs
Buyers should budget approximately 1.5% to 4% of the purchase price for closing costs. In New Brunswick, these typically include:
- Land Transfer Tax: New Brunswick charges a property transfer tax of 1% of the assessment or sale price (whichever is higher), payable at closing.
- Legal Fees: Expect to pay between $1,000 and $2,000 for a real estate lawyer to handle the closing paperwork, title search, and registration.
- Home Inspection: A professional home inspection typically costs $400 to $900 and is highly recommended to identify any issues before you finalize the purchase.
- Title Insurance: This one-time premium (usually $200 to $400) protects you against title defects and is often required by your lender.
- Property Tax Adjustments: You may need to reimburse the seller for any property taxes they have prepaid beyond the closing date.
Ongoing Costs to Consider
Beyond the purchase, homeowners in Greater Moncton should plan for ongoing costs including property taxes (which vary by municipality), homeowner's insurance, utilities, and maintenance. A good rule of thumb is to set aside 1% to 2% of your home's value annually for maintenance and repairs.
The Bottom Line
For a $350,000 home in Greater Moncton with a 5% down payment, you should plan for roughly $17,500 for the down payment plus $5,000 to $14,000 in closing costs. Understanding these numbers upfront helps you budget confidently and avoid surprises on closing day.
