Money Talks

Be informed! Aside from the purchase price of the property, there are a few other costs to keep in mind. It's better to be aware of these costs ahead of time so you can plan accordingly. So what exactly do you need to pay? What is a down payment? What are "closing costs"?

Read on ahead, and if you have any questions:

Down payment

This is the initial payment towards the purchase of a property. The down payment amount varies and is often based on the mortgage requirements. Mortgage insurance may be required if your down payment is under 20% for your property.

property transfer tax

This is the tax associated with buying and selling property in British Columbia. Property Transfer Tax is calculated at

• 1% of the fair market value up to and including $200,000

• 2% of the fair market value greater than $200,000 and up to and including $2,000,000

• 3% of the fair market value greater than $2,000,000

*A rebate may be applicable, please ask for more details.

Government sales tax

GST applies to new developments and substantially rebuilt property, and is a 5% tax of the property purchase price. A rebate may be applicable, please ask for more details.

lawyer/notary fees (CONVEYANCING & DISBURSEMENTS)

This amount covers the transfer of ownership to you in exchange for funds, the registration of the title and property insurance under the new owner (you). You should budget approximately $1700 for legal fees.

Adjustments

The "Adjustment Date" usually lines up with the possession date of buying a property. Adjustments are made at the lawyer or notary office and are the reimbursement of city taxes, utility bills, and strata fees that the seller may have pre-paid beyond the adjustment date.

inspection

Although optional, it is recommended that you have an inspection report completed prior to finalizing the purchase of a home. Having a licensed inspector scrutinize the home you are considering can provide valuable information that will protect you against buying a lemon. A professional inspection costs between $450 - $600 depending on the size of the property.

strata move-in fees

Most stratas require a move-in fee for elevator booking and protection when getting yourself settled in. These fees are typically $100 - $250 depending on the bylaws of the strata you have purchased into. 

Closing Costs

A home purchase involves more than just the purchase price. Avoid surprises and learn about closing costs here.