What Does It Actually Cost to Buy a Home in Greater Moncton in 2026?
The honest, complete breakdown — from your first dollar down to handing over the keys.
At a Glance — Buying a $400,000 Home in Greater Moncton
* Figures are estimates for illustrative purposes. Always consult your lawyer and mortgage professional for exact numbers.
One of the most common things I hear from first-time buyers is some version of: “I thought I just needed the down payment.” And honestly? That’s a totally understandable assumption. But the purchase price is only part of the picture. There are a handful of other costs that come due on or before closing day — and if you’re not expecting them, they can catch you off guard.
So let’s walk through every single cost, one by one, in plain English. I’ll use a $400,000 home as the example throughout — roughly the current average sale price in Greater Moncton — so the numbers are real and relevant.
1. The Down Payment
In Canada, the minimum down payment depends on the purchase price. For homes under $500,000, the minimum is 5% of the purchase price. For homes between $500,000 and $999,999, it’s 5% of the first $500,000 and 10% of the remainder. For homes over $1.5 million, you need at least 20% down.
The big question is whether to go with the minimum or save up for 20%. Putting down 20% or more means you avoid CMHC mortgage default insurance (more on that below) — which can save you a significant amount over the life of your mortgage.
5% down = $20,000 minimum | 10% down = $40,000 | 20% down = $80,000 (avoids CMHC insurance)
2. CMHC Mortgage Default Insurance
This one surprises a lot of buyers. If your down payment is less than 20%, Canadian law requires you to purchase mortgage default insurance — commonly called CMHC insurance. It protects your lender (not you) if you default on the mortgage. The premium is added to your mortgage, so you don’t pay it upfront — but it does increase your total loan amount and the interest you pay over time.
The premium rate depends on your down payment percentage:
- 5–9.99% down → 4.00% of the mortgage amount
- 10–14.99% down → 3.10% of the mortgage amount
- 15–19.99% down → 2.80% of the mortgage amount
- 20%+ down → No CMHC insurance required
The good news for New Brunswick buyers: unlike Ontario and Quebec, New Brunswick does not charge provincial sales tax on CMHC premiums — so you save compared to buyers in those provinces.
Mortgage = $380,000 × 4.00% = $15,200 added to your mortgage (not paid upfront in NB)
3. New Brunswick Land Transfer Tax
Here’s one of the nicest things about buying in New Brunswick compared to Ontario or BC: the land transfer tax is a simple, flat 1% of the purchase price (or assessed value, whichever is higher). No tiered system, no municipal surcharge, no first-time buyer rebate to navigate — just 1%, paid on closing day through your lawyer.
This is significantly lower than Ontario (where rates climb up to 2% plus a Toronto municipal tax) and makes New Brunswick one of the more buyer-friendly provinces for closing costs in Canada.
$400,000 × 1% = $4,000 land transfer tax — paid on closing day
4. Legal Fees & Disbursements
You need a real estate lawyer to complete any home purchase in New Brunswick — there’s no way around it. Your lawyer handles the title search, reviews all documents, registers the deed, coordinates the transfer of funds, and makes sure you actually own what you think you’re buying.
Legal fees in Greater Moncton typically run between $1,200 and $1,800 for a straightforward residential purchase, plus disbursements (out-of-pocket costs like title registration and government search fees) of roughly $300–$500 on top of that. It’s worth shopping around — fees do vary between lawyers — and your REALTOR® can usually point you to reputable local options.
Legal fees ~$1,200–$1,500 + disbursements ~$300–$500 = roughly $1,500–$2,000 total
5. Home Inspection
A home inspection isn’t legally required in New Brunswick, but I always recommend it — and I’ve never once had a buyer regret getting one. For $500–$700 (the typical range in Greater Moncton), a qualified inspector will spend 2–4 hours examining the roof, foundation, electrical, plumbing, HVAC, insulation, and more. You get a detailed written report within 24–48 hours.
If the inspection uncovers issues, you can negotiate repairs, request a price reduction, or in some cases walk away entirely. That $600 can save you from a $20,000 surprise. Note that home inspectors in New Brunswick are not required to have provincial licensing, so ask your REALTOR® for referrals to inspectors they’ve worked with and trust.
$500–$700 — paid directly to the inspector at the time of inspection, before closing
6. Title Insurance
Title insurance is a one-time premium — usually $200–$400 — that protects you against issues with the property’s title that might not show up in a standard title search. Things like undisclosed liens, survey errors, or title fraud. Most lawyers in New Brunswick will recommend it as standard practice, and it’s worth the modest cost for the protection it provides.
7. Property Tax Adjustments
Property taxes in Greater Moncton are paid annually, but they get prorated at closing. If the seller has already paid property taxes for the year, you’ll owe them a reimbursement for the portion of the year you’ll be living there. If they haven’t paid yet, you may receive a credit. Your lawyer handles these adjustments automatically — but budget for it, because it can add a few hundred to a few thousand dollars depending on the closing date and the home’s assessed value.
Annual property taxes ~$4,000–$5,500 depending on assessed value. Adjustments vary by closing date.
8. Moving Costs & Initial Setup
Not a closing cost per se, but buyers consistently underestimate this one. A local move in Greater Moncton typically runs $800–$2,000 for a professional moving company depending on home size. If you’re relocating from out of province (which many buyers moving to Moncton are), budget $3,000–$8,000+. Add to that any immediate repairs, new appliances, window coverings, and the small things that add up fast in a new home.
The Full Picture — Real Numbers on a $400,000 Home
Here’s every cost in one place, using a $400,000 purchase with a 5% down payment as the example:
| Cost Item | Description | Estimated Amount |
|---|---|---|
| Down payment | 5% minimum | $20,000 |
| Land transfer tax | NB flat rate 1% | $4,000 |
| Legal fees + disbursements | Lawyer + title registration | $1,500–$2,000 |
| Home inspection | Standard residential inspection | $500–$700 |
| Title insurance | One-time premium | $200–$400 |
| Property tax adjustments | Prorated at closing | $500–$2,000 |
| CMHC insurance premium | 4% on $380K mortgage — added to mortgage, not paid upfront in NB | $15,200 (to mortgage) |
| Total cash needed at closing | Down payment + closing costs | ~$27,000–$30,000 |
What About the Real Estate Commission? Does the Buyer Pay?
Here’s good news that surprises a lot of buyers: in most New Brunswick real estate transactions, the buyer pays nothing directly to their REALTOR®. The commission is paid by the seller from the sale proceeds and is split between the listing agent and the buyer’s agent. You get professional representation at no direct cost to you.
This is the standard practice, and it’s one of the reasons I always encourage buyers to work with a REALTOR® rather than going it alone — you’re leaving free professional guidance on the table if you don’t.
On the seller’s side, however, commission is one of the largest costs. Traditional commission rates in New Brunswick typically run 4–6% of the sale price. On a $400,000 home, that’s $16,000–$24,000. This is where my 3% total commission model makes a real difference for sellers — but that’s a topic for another post.
Frequently Asked Questions
No — unlike Ontario and BC, New Brunswick does not offer a land transfer tax rebate for first-time buyers. The flat 1% applies to everyone. However, there are federal programs available to first-time buyers, including the Home Buyers’ Plan (HBP), which lets you withdraw up to $60,000 from your RRSP tax-free for a down payment, and the First Home Savings Account (FHSA), which allows tax-free savings of up to $40,000 for your first home. Couples can combine both accounts for a significant down payment boost.
A general rule of thumb is to budget 2–3% of the purchase price for closing costs (not including the down payment). On a $400,000 home, that’s roughly $8,000–$12,000 in closing costs. The biggest items are the land transfer tax (1%), legal fees, and the home inspection. The CMHC premium, if applicable, is added to your mortgage rather than paid upfront in New Brunswick.
In most cases, no — closing costs need to be paid in cash on closing day. The one exception is the CMHC mortgage default insurance premium, which is added to your mortgage balance rather than paid upfront. This is why lenders and real estate agents always stress having your closing costs saved separately from your down payment.
Yes, absolutely. A real estate lawyer is required for all property transactions in New Brunswick. They handle the title search, document review, fund transfer, and deed registration. Your REALTOR® can refer you to experienced real estate lawyers in Greater Moncton — it’s worth getting two or three quotes since fees vary.
Yes — beyond the federal RRSP Home Buyers’ Plan and FHSA, New Brunswick has a Home Ownership Program that provides a repayable loan of up to 40% of the purchase price (or $75,000 for new builds) to eligible first-time buyers with household incomes below $40,000. The loan is repaid over 25 years. There are also various energy efficiency incentive programs that can offset costs on new or renovated homes. Ask your mortgage broker about the full range of programs you may qualify for.
Want a Free Personalized Cost Estimate?
Every purchase is different. Give me a call and I’ll walk you through what buying actually costs for your specific situation — no pressure, no obligation.
📞 Call Richard: 506-802-8805Or email Richard@Wontorra.com · wontorra.com
