Mortgage related costs:
Lenders may charge a mortgage application fee, which will vary depending on the lending institution.
The federal government requires high-ratio mortgages with less than 20% down payment to be insured against default. Consult your mortgage broker for detail.
Before your lender approves your mortgage, you may be required to have the property appraised. Sometimes your lender will cover this cost. If not, you're responsible. The fee ranges from $300 to $450 plus GST.
Land survey fees
Lenders may require a survey of the property. The fee ranges and is typically $500 plus GST.
Home inspection fees
A home inspection is a report on the condition of the home and includes structural and moisture problems, as well as electrical, plumbing, roofing and insulation. The fees are different depending on the size of the home and the complexity of the inspection. Normally, the inspection fee for condo and townhouse is about $400-$500, and for single house, it is around $700-$800. Some inspectors also charge an additional fee for an older home, luxury home or a home with a secondary suite, a crawlspace, or a laneway home.
Goods and Services Tax (GST)
The GST on a new home is 5% of the price. A GST rebate equivalent to 36% of the GST paid is available for new homes priced up to $350,000 and a partial rebate on new homes priced up to $450,000.
Buyers also pay the GST on fees for services from appraisers, home inspectors, lawyers, and Notary.
Property Transfer Tax
Home buyers in BC pay a provincial Property Transfer Tax (PTT) when they buy a home. The tax is charged at a rate of 1% on the first $200,000 of the purchase price and 2% on the remainder up to and including $2 million. The PTT is 3% on amounts greater than $2 million.
Qualifying first-time home buyers may be exempt from paying the PTT if the purchase price of their home is priced up to $475,000. There is a proportional exemption for homes priced between $475,000 and $500,000. At $500,000 and above the rebate is nil.
To get detailed information regarding the qualification of the first-time home buyer, please contact Francie.
Qualifying buyers of new homes may be exempt if the purchase price of their home is priced up to $750,000. There is a proportional exemption for homes priced between $750,000 and $800,000. At $800,000 and above there's no rebate. For detailed new home exemptions, please contact Francie for information.
Legal or Notary Public fees
Buyers typically hire a lawyer or Notary Public to assist with drafting documents and ensuring the title of the home is properly transferred. The lawyer fee is usually around $1000-$1500.
Depending on the Contract of Purchase and Sale, a property buyer will likely be required to reimburse the seller for any prepaid property taxes. The lender may require the buyer to add property tax installments to monthly mortgage payments.
A buyer is typically required to reimburse the seller for any prepayments for municipal sewer and water fees.
Fire and liability insurance
Most lenders require property buyers to carry fire and extended coverage insurance and liability insurance.
Lenders typically require home buyers with a mortgage to buy home insurance. The insurance should be effective on the earlier of either the completion date or the date that the balance of funds is placed in trust.
Utility hook ups
There are fees for hydro, gas, water and sewer, cable, and phone connections.
New owners should always have door locks rekeyed. Costs depend on whether the locks are standard or electronic.
Moving fees vary depending on the distance moved and whether professional movers do all of the packing. Rates vary.
Strata maintenance fees
Typically paid on the first day of each month. This fee will be calculated and showed on the final statement of adjustment prepared by the lawyer or notary public before completion.