Adjustments – At the time of Completion a Notary or Lawyer will prorate any periodic charges such as Property Taxes, Strata Fees and Municipal Utilities.
Appraisal Fee – Can cost approximately $250 and may be paid by the Mortgage Lender.
GST– 5% on all new construction.
Legal & Mortgage Costs – Cost to transfer title & draw up a mortgage are approximately $800 to $1,000.
Home Insurance – Needs to be in place at time of Completion. Insurance should cover contents including any upgrades done to the home. Deductibles for damages due to water, flood and sewer backup should also be covered. Talk to your insurance agent in advance.
Mortgage Insurance – Mortgages over 80% of purchase price need to be insured with CMHC or Genworth. Insurance fees typically range from 2.8 to 4.5% of the mortgage amount and will be added to the mortgage.
Property Transfer Tax – PTT is 1% on the 1st $200,000, 2% on the portion up to $2,000,000 and then 3% on the balance of the purchase price. If the property is residential, a further 2% on the portion greater than $3,000,000 is taxed. There is also a Foreign Buyer’s tax, in certain areas of BC, of an additional 20% of the purchase price. First time buyers, who are residents of BC for a minimum of 12 months & have never owned an interest in a principal residence anywhere, are exempt up to $500,000. For purchases between $500,000 & $525,000, there is a sliding scale on the partial exemption amount. There is no exemption on purchases over $525,000. Property Inspection- Costs vary depending on size of property. Usually start at approximately $350 for condos and $450 for houses.
Survey Certificate – Costs approximately $250 to $400 or may be available from the Seller or City Hall. Usually needed for detached homes only.
Title Insurance – Title Insurance protects the Homeowner against losses associated with title fraud, survey, title issues/defects as well as challenges against your ownership. Title Insurance costs approximately $250 on a purchase of up to $750,000.
NOTE: Banks look for a buyer to have approximately 1.5% cash available above down payment for closing costs. A Buyer, obtaining an insured mortgage, is qualified based on the posted rate, not the discounted rate, with a 25 year amortization. As well insured mortgages must have a down payment of 5% up to $500,000 and 10%