Start-up costs when purchasing a property

Buying a property involves several start-up costs that are essential to plan for. These costs, which are in addition to the down payment and mortgage payments, require the buyer to have sufficient cash on hand at the time of the transaction. These costs should not be underestimated, as they are an unavoidable part of the buying process.

Financial institutions that grant mortgages ensure that the buyer has the necessary funds to cover these costs before granting a loan. It is important to note that the mortgage, which is calculated based on the value of the property, cannot be used to pay the start-up costs.

Here are some common start-up costs:

• Property inspection: This step allows you to check the condition of the house.
• Review of the file by the mortgage insurer (if applicable), as well as taxes on the premium: this analysis is required if mortgage insurance is necessary, and it incurs additional costs.
• Notary fees • Adjustments in respect of general and special real estate taxes, fuel reserves, and income and expenses relating to the property.
• Transfer duties ("welcome tax").
• Moving expenses.
• Connection fees (telephone, internet, etc.).
• Furnishing/decorating (paint, curtains, etc.).

It is therefore essential to plan these expenses carefully in order to avoid unpleasant surprises and ensure the success of your real estate project.