Closing Costs: What to Budget For Beyond Your Down Payment
The costs that surprise buyers, and how to plan for them in Saskatchewan.
The quick version
Closing costs are the extra costs to finalize your purchase, on top of your down payment.
Lenders want to see at least 1.5% of the purchase price set aside for them.
Saskatchewan has no land transfer tax, but there is a Land Titles fee.
With an insured mortgage, you will pay PST on the insurance premium at closing.
Plan for these during your pre-approval, not after you write an offer.
Want your exact numbers? Book a call and I will map out your down payment and closing costs together.
How much should I set aside?
Lenders need to see that you have at least 1.5% of the purchase price available for closing costs, in addition to your down payment.
Example: on a $350,000 home with 10% down, you would want at least $35,000 (down payment) plus $5,250 (1.5%), for a total of $40,250. More of a cushion is always better.
The costs to plan for
1. Home inspection
A professional checks the home's condition so there are no big surprises. You pay for this, and it is money well spent.
2. Appraisal
Confirms the home's value for the lender. Sometimes the lender or insurer covers it; sometimes you do.
3. Lawyer fees
Your lawyer handles the legal side: transferring the title into your name, registering the mortgage and handling the funds. Budget for their fees plus disbursements (the out-of-pocket costs they pay on your behalf).
4. Land Titles fees
Saskatchewan does not have a land transfer tax like some provinces. Instead, there is a fee to transfer the title, 0.4% of the property value, plus a smaller fee to register your mortgage. For example, on a $350,000 home the title transfer fee is $1,400 ($350,000 x 0.4%). Registering a $315,000 mortgage adds about $250. Your lawyer usually pays these and includes them in your statement.
5. PST on mortgage default insurance
If you put less than 20% down, Saskatchewan charges 6% PST on your default insurance premium. The premium can be added to your mortgage, but the PST cannot. It is paid at closing.
6. Title insurance
Often recommended by your lawyer to protect against title issues. It is a one-time cost.
7. Property tax and utility adjustments
If the seller prepaid property taxes or utilities past your possession date, you will pay them back for your share.
8. Home insurance
Your lender needs proof of home insurance, starting on possession day, with the lender named on the policy.
9. Moving costs
Movers, a truck rental or pizza for the friends who help. It adds up.
10. Utility hookups
Usually more time than money, but some providers ask for a deposit if you are new to them.
Buying a new build?
GST may apply to newly built homes, and rebates may be available depending on the price and your situation. We will go over this together, since it can make a big difference.
Also worth a conversation
Life and disability insurance are not required, but they protect you and your family if something unexpected happens. It is worth talking about before you move in.
Let us plan it all together
Closing costs are just as important as your down payment, and they belong in your plan from day one. I will help you see the full picture so there are no surprises. Book a call and let us get your numbers right.
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