Typical costs involved in buying a property
It is important to understand the costs involved in buying a property. Many first time buyers, or those moving to Canada, are not aware of all the costs. This guide will help you budget for your new home.
We recommend that you see a mortgage broker or your bank as soon as you have decided to buy. This ensures that you have a realistic idea of your budget - then we can help you find a home that you can afford.
| Property transfer tax The British Columbia province defines this tax and it has to be paid before the purchase can be completed. |
1% of first $200,000 2% on remaining balance |
| Lawyer or Notary The legal fees cover the transfer of property title and recording this in the Land Title Office. If you are getting a new mortgage there is a fee to prepare and register the mortgage documents. |
$600 - $1,000 |
| Survey certificate If required by the lender or recommended by the lawyer. The survey ensures that the buildings are within the borders of the property and there are no encroachments. Applies to single family homes. The previous owner may have a Survey Certificate that is acceptable. |
$250 approx |
| Mortgage Application Fee This varies from lender to lender. |
$300 - $500 |
| Building inspection fee It is your option as the buyer whether or not to have a home inspection done to pinpoint any potential defects. This is not a lending institution requirement. |
$250 - $400 |
| Appraisal fee Most lenders require an appraiser’s report confirming that the purchase reflects fair market value. Depending on your down payment, some lenders will waive this requirement. |
$100 - $200 |
| Property Tax If the current owners have paid the property tax for the year, you will need to reimburse them for your share of the taxes. Property taxes are calculated from Jan – Dec and are paid at the end of June. |
Varies |
| Goods & Services Tax (GST) This applies to newly constructed homes only. If the home is your primary residence then you may qualify for a rebate. If the home is under $350,000, and this is your principal residence, a rebate will reduce the GST paid to 4.48% of the purchase price. If the price is over $350,000 the net GST to be paid increases gradually until it is a full 7% at amounts over $450,000. |
Varies |
| Strata fees For condo’s, if the current owner has pre-paid the strata fees, there may be an adjustment that is needed. |
Varies |
Remember that you will also need to consider the following costs:
- Moving costs
- Deposits required by utility companies
If you need referrals to lawyers, building inspectors, mortgage brokers or moving companies, then call or e-mail me.
