While buying a new home is often one of the most exciting times, it is important that you know and understand all of the costs involved with the purchase of a new property. Here are the fees you can expect:
- Property Transfer Tax – 1% of the 1st $200,000 & 2% on the balance of the purchase price.
- Lawyer / Notary Fees – Includes your lawyer’s fees & registration of mortgage and certificate of title and disbursements.
- Appraisal Fee – Some lenders may require an appraiser’s report confirming that the purchase reflects fair market value.
- House Inspection Fee – When buying a property that is not brand new it is often a good idea to have a property inspection conducted on the property to pinpoint defects. This is not a lending institution requirement
- Property Tax Adjustment – Based on the “adjustment date,” you may have to reimburse the seller for prepaid property taxes.
- HST – HST is not payable on used residential housing. Some buyers may be eligible for partial HST rebates.
- First Time Home Buyers requirements – A first time home buyers may qualify for a full exemption with a purchase price of less than $425,000.00 (previously $375,000.00). A partial exemption is available if the purchase price is more than $425,000.00 but less than $450,000.00. Also, there is no longer a requirement for any financing.For more information, please see http://www.sbr.gov.bc.ca/documents_liberary/bulletins/PPT_004.pdf
Learn more about the most important financial decision you will face.
Canada Mortgage & Housing Corporation
Canada Mortgage and Housing Corporation offers a Home Buyer Step by Step Guide that may help you learn more about this important decision.
Figure out what you can afford, and how much you are willing to invest. Don’t spend more than you can afford.
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