Buying a home in Calgary is an exciting journey, whether you’re a first-time buyer or a seasoned investor. But while you may have saved for the down payment and secured a mortgage pre-approval, many buyers are caught off guard by the hidden costs of buying a home in Calgary. Have you considered all the extra expenses that come with homeownership?

By the end of this blog, you’ll have a clear roadmap to financial preparedness, ensuring no surprise costs derail your dream of owning a home in this beautiful city.

1. Closing Costs: The Often-Overlooked Expenses

a. Legal Fees and Land Transfer Tax

When purchasing a property, you’ll need a real estate lawyer in Calgary to help with the legal paperwork, title transfer, and mortgage registration. Expect legal fees to range from $1,500 to $3,000.

Additionally, the Alberta government requires buyers to pay a land transfer fee, though it is lower than in some other provinces. The total cost depends on the property value and mortgage amount.

b. Home Inspection Fees

Before finalizing the purchase, a home inspection is crucial to uncover potential issues. Inspections typically cost $300 to $600, but this investment could save you thousands in unexpected repairs.

c. Title Insurance

This one-time fee, typically $250 to $400, protects against fraud, errors in public records, and other title-related issues.

2. Property Taxes and Home Insurance: Recurring Costs You Can’t Ignore

a. Property Taxes

Property taxes in Calgary real estate vary by neighborhood and property value. The City of Calgary determines the annual property tax based on the assessed home value. Expect to pay approximately 0.74% of your home’s value annually.

b. Home Insurance

Lenders require homeowners to have home insurance before finalizing a mortgage. The average cost in Calgary is $1,000 to $2,500 per year, depending on coverage and home location.

3. Utility Bills: The True Cost of Comfort

a. Heating, Electricity, and Water

Calgary’s cold winters mean higher heating bills, especially if the home isn’t energy-efficient. Combined monthly utility costs for a detached home can range between $200 to $500.

b. Internet and Cable Services

A new home means setting up Wi-Fi, cable, and phone services, adding an extra $100 to $200 per month to your budget.

4. Home Maintenance and Repairs: Unexpected Expenses

Owning a home means being responsible for its upkeep. Here’s a breakdown of potential home maintenance costs in Calgary:

• Furnace and HVAC maintenance – $100 to $300 per year
• Roof repairs or replacement – $5,000 to $15,000
• Plumbing or electrical repairs – $100 to $500 per visit
• Snow removal and lawn care – $50 to $200 per month

Experts recommend setting aside 1% of the home’s value annually for maintenance expenses.

5. Condo Fees: A Hidden Expense for Some Buyers

If you’re buying a condo in Calgary, you’ll need to factor in monthly condo fees, which cover building maintenance, amenities, and sometimes utilities. These fees range from $200 to $800 per month, depending on the property.

6. Moving and Furnishing Costs: The Final Touch

a. Moving Costs

Hiring professional movers within Calgary can cost $500 to $2,000, while cross-province moves will cost more.

b. Furnishing and Decorating

New homeowners often underestimate how much they’ll spend on furniture, appliances, and décor. A basic furnishing budget could be $5,000 to $20,000, depending on home size and personal taste.

7. HOA Fees: A Cost in Some Communities

Certain Calgary communities like Mahogany and Auburn Bay have Homeowners’ Association (HOA) fees for shared amenities such as lakes, parks, and recreational facilities. These fees typically range from $100 to $500 per year.

Budget Smart and Buy with Confidence

Buying a home is more than just paying the purchase price. Proper planning for these hidden costs of buying a home in Calgary will help you avoid financial strain and fully enjoy your new property.

Are you looking for expert guidance in navigating Calgary’s real estate market? Jai Chaudhary Real Estate is here to help. Contact us today and let’s find your dream home—without any surprises!