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First-Time Buyer's Guide

Understanding Closing Costs in New Brunswick

A simple buyer example — see exactly what it costs to buy your first home, with a real-number breakdown on a $300,000 property.

Planning example only — numbers will vary by home, lender, and closing date.

Example Purchase

Negotiated Price$300,000
PropertySingle-Family Home
Closing DateApril 2
LocationNew Brunswick
1

Deposit (Good-Will)

Typical Amount$2,000 – $5,000
Example$5,000
Paid WhenOffer accepted
Goes TowardDown payment

Not Extra Money — it counts toward your down payment

2

Down Payment

Minimum Required5%
5% of $300,000= $15,000

⚠ Under 20% = mortgage insurance required (added to your mortgage, not paid upfront)

3

Typical Closing Costs

Land Transfer Tax (1%)$3,000
Property Tax Adjustment$2,162
Lawyer Fees$1,200
Total Closing Costs$6,362

Property Tax Adjustment

The seller pays property taxes up to the closing day. You reimburse the seller for the portion of the year after closing.

Buyer's PeriodApril 2 – Dec 31
Annual Tax$2,878.97
Your Share~$2,162

Cheque at Closing

Down payment (total)$15,000
Minus: Deposit paid−$5,000
Remaining down payment$10,000
Closing costs~$6,362
Bank Draft Needed$16,362

The bank sends mortgage funds separately to your lawyer

Key Takeaways

  • Deposits reduce your final cost — they're not lost money
  • Land transfer tax is unavoidable in NB
  • Property taxes split fairly at closing
  • The bank sends the mortgage — you top up the balance
  • Plan ahead to avoid surprises

These numbers are based on a planning example and will vary by property, municipality, lender, and closing date. Always consult your REALTOR® and lawyer for figures specific to your situation.

First-Time Buyer Process

Your step-by-step path from “thinking about it” to holding the keys.

  1. 1

    Check Your Credit & Get Pre-Approved

    Talk to a mortgage broker or your bank to find out how much you can afford. Pre-approval gives you a clear budget and shows sellers you are serious.

  2. 2

    Save for Down Payment + Closing Costs

    Plan for your minimum 5% down payment plus approximately $6,000 to $8,000 in closing costs. Your deposit counts toward the down payment — it is not extra money.

  3. 3

    Find a REALTOR® Who Answers Your Questions

    Work with someone who will walk you through every step, explain all the costs upfront, and give you honest answers — not someone who rushes you into a decision.

  4. 4

    Search, Tour & Make an Offer

    Browse listings, schedule private viewings, and when you find the right home, submit a competitive offer backed by market data.

  5. 5

    Home Inspection, Conditions & Financing

    Complete your home inspection, finalize your mortgage approval, and satisfy any conditions on the offer. Your REALTOR® and lawyer coordinate the details.

  6. 6

    Closing Day — Bring Your Bank Draft!

    Bring a certified bank draft for the remaining down payment and closing costs to your lawyer. The bank sends the mortgage funds separately. You get the keys!

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Everything you need to know about buying your first home in Greater Moncton — from pre-approval to closing day.

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First-Time Buyer FAQs

Honest answers to the questions every first-time buyer asks.

How much money do I need to buy my first home in NB?
For a $300,000 home, you would need a minimum 5% down payment ($15,000), plus closing costs of approximately $6,000 to $8,000 — so roughly $21,000 to $23,000 total. Your deposit (typically $2,000 to $5,000) is part of the down payment, not an extra cost. Budget for the down payment plus closing costs, and you will have a clear picture of the total cash needed.
What is CMHC mortgage insurance and do I need it?
CMHC mortgage insurance (also called mortgage default insurance) is required in Canada when your down payment is less than 20% of the purchase price. It protects the lender if you default on the mortgage. The premium is based on your loan-to-value ratio — for a 5% down payment it is about 4% of the mortgage amount. The premium is added to your mortgage, so you do not need to pay it upfront.
What happens on closing day?
On closing day, your lawyer handles the legal transfer of the property. You will provide a bank draft (certified cheque) for the remaining down payment and closing costs. Your mortgage lender sends the mortgage funds directly to the lawyer. Once the deed is registered, you receive the keys to your new home. The whole process is coordinated by your lawyer — you just need to show up with your bank draft and ID.
How long does the whole process take?
From pre-approval to closing, the typical timeline in Greater Moncton is 60 to 90 days. Getting pre-approved takes a few days to a week. Finding a home varies, but most active buyers find a property within 2 to 6 weeks. Once your offer is accepted, closing usually takes 30 to 60 days depending on conditions and the agreed possession date.

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Buying your first home does not have to be confusing. Let's sit down (or hop on a call) and go through your numbers together — no pressure, no obligation.

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