Cost Of Buying A Home
THE 7 IMPORTANT CLOSING COSTS WHEN PURCHASING A HOME!
1 Property Transfer Tax - The property purchase tax is payable on the purchase of all real property in B.C. It is calculated based on 1% of the first $200,000 and 2% of any amount above $200,000 up to and including $2,000,000. 3% on the protion of fair market value greater than $2,000,000.
Most first time buyers are exempt from this if they meet certain criteria. The main criteria are:
*be a Canadian citizen or permanent resident
*lived in BC for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a BC resident in the last 6 years.
*borrower has never owned a principal residence anywhere
*maximum purchase price of $475,000.
2 Inspection – We recommend that you have your home inspected. The cost will typically be between $350 and $600.
3 Legal Fees - Legal representation will cost you approximately $1200 for a purchase, and $600 for a sale.
4 Property Tax Adjustment - Generally property taxes for the calendar year are paid at the beginning of July. If you purchase a property before July 1st, the seller will be paying you for the days they owned the home after January 1st. If you purchase a property after July 1st, you will pay the seller for the days you own the property before December 31st. (one day’s taxes on owner occupied properties are – annual taxes divided by 365).
5 Strata Cost Adjustments - For strata properties only you will be reimbursed for strata fees you may have paid, or may have to pay for strata fees owed (depending on your purchase/sale date). If you take possession on the 15th say you would owe the seller the remainder of the month as they would have paid for the month. **Also if it is a condo purchase there will most likely be a move in fee to reserve the elevator - varies from $50-$150.
6 Mortage - Property Appraisal - The property is evaluated by a professional appraiser to determine the market value of the property. This is done to ensure that the lending institution is not over advancing on the property to protect the borrower from over paying. Appraisals usually cost $300-$400. Typically you would pay for this and the lender will reimburse you if you purchase the property. Ask your lender to pay this fee as most will. **CHECK with your lender on any and all fees if there are any.
7 GST - GST is charged on all new construction. Please look at our GST Calculator or contact us directly for the GST rules and rebates.