What nobody tells you before you sign — and what we think you absolutely deserve to know.
Let's be honest with each other for a minute. Buying a home is one of the most exciting things you'll ever do — and also one of the most overwhelming. And a big part of what makes it overwhelming? Nobody gives you the full picture upfront.
We're Marianne and Jennifer, your local Oxford County realtors, and if there's one thing we can't stand, it's people being blindsided. So today we're pulling back the curtain on down payments and all those "surprise" costs that seem to appear out of nowhere. Consider this your straight-talk guide — no fluff, no fine print, just the real deal.
So… How Much Do You Actually Need for a Down Payment?
Here in Canada, the minimum down payment depends on the purchase price of the home:
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Homes under $500,000 Minimum 5% down payment required.
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Homes between $500,000 – $999,999 5% on the first $500K, then 10% on the rest.
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Homes $1 million and over Minimum 20% down — no exceptions.
???? Here's something a lot of people don't realize: if your down payment is less than 20%, you'll be required to purchase mortgage default insurance (CMHC insurance). This protects the lender — not you — and gets added right onto your mortgage. It can add thousands of dollars to what you owe. We want you to know that going in.
The Hidden Costs Nobody Warned You About
This is where we really want to have a heart-to-heart. Because saving your down payment is hard enough — and then people get to closing day and their jaw drops at what else is due. Here's what you need to budget for on top of your down payment:
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Land Transfer Tax Calculated on the purchase price. First-time buyers get a rebate up to $4,000 — but there's usually still a balance. Budget roughly 1–1.5% of the purchase price.
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Legal Fees & Disbursements You'll need a real estate lawyer. Typical Ontario costs: $1,500–$2,500, plus disbursements like title searches and registration fees.
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Home Inspection Please, please don't skip this. A good inspector costs $400–$600 and could save you from buying someone else's very expensive problem.
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Title Insurance Around $200–$400. Protects against survey errors and title fraud. Most lawyers recommend it — and so do we.
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Mortgage Default Insurance (if applicable) If your down payment is under 20%, this gets added to your mortgage — ranging from 2.8% to 4% of the mortgage amount.
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Moving Costs Whether you hire movers or sweet-talk your friends with pizza, it adds up. Professional movers locally can run $800–$2,000+.
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Immediate Repairs & Updates Even a well-maintained home often has a wish list waiting. Set aside $2,000–$5,000 for the things you didn't plan on.
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Property Tax Adjustment At closing, you may owe the seller a portion of prepaid property taxes. Your lawyer handles it — but it's real money leaving your pocket.
The average amount buyers in Ontario spend on closing costs beyond their down payment.
Plan for it — don't be surprised by it.
Our Honest Advice? Start With the Full Number.
When people ask us "how much do I need to buy a home?" we never just say the down payment number. Because that's not the real answer. The real answer is: your down payment plus closing costs plus a buffer for the unexpected.
That might sound like a lot — and we won't pretend it isn't. But knowing the real number means you can actually plan for it. You won't be scrambling at the finish line. You won't be calling your parents in a panic the week before closing. (We've seen it. It's stressful for everyone.)
We'd rather have an honest conversation with you at the beginning than watch you get caught off guard at the end. That's just how we operate.
You Don't Have to Figure This Out Alone
Buying a home in Oxford County is absolutely within reach — and it's genuinely one of the most rewarding things you'll ever do. We just want to make sure you get there with your eyes open and your budget intact.
If you have questions, want to run some numbers, or just want to talk through where you're at — we're here for that conversation. No pressure, no sales pitch. Just two local realtors who actually care.
Let's Talk — For Real.
Whether you're just starting to save or ready to start searching, we'd love to connect and walk you through exactly what your journey to homeownership looks like.
Reach Out to Marianne & Jennifer
