Hidden Costs.
This is a list of some of the expenses that will be incurred with your purchase, and you should be aware of them:
Property Transfer Tax (1% of purchase price to $200,000, 2% of the balance)
To be exempt from Property Transfer Tax:
- Must be a Canadian citizen and reside in BC for 12 consecutive months prior to the transfer.
- Must not have previously owned an interest in a principal residence anywhere in the world.
- Purchase price cannot exceed $325,000.
- The mortgage must exceed 70% of purchase price for a term of at least one year and must not be reduced by more than $9,000 the first year.
- Deposit at time of offer (usually 5%-25% of purchase price)
- Building inspection (approx. $275.00 plus GST)
- Chimney Inspection (approx.$150.00 if applicable)
- Insect inspection (approx. $75-$100 if applicable)
- Septic inspection (approx. $300-$400 if applicable)
- Mortgage application fee (approx. $125.00)
- Property survey if required by the bank (approx. $300.00 plus GST)
- Property appraisal (Bank charges approximately $200.00)
- Mortgage insurance if less than 25% down (CMHC .5% - 3% of amount of mortgage)
- Notary/Lawyer fees and disbursements:
- Cash Only including disbursements (approx. $550.00)
- Mortgage including disbursements (approx. $750.00 - $800.00)
- Strata Property including disbursements may be approx. $100.00 more
- Goods & Services Tax (applicable to new homes or if the Vendor is a corporation. A partial rebate is issued if home is primary residence. Total paid 3.84%)
- Adjustments for fuel, water and sewer rates and property taxes
- Home and property insurance
- Moving expenses
- Utility hook-ups such as phone, electricity, natural gas