Closing Costs for Buyers
Here is a guide to some of the common closing costs (please seek independent legal advice from your lawyer or notary.)
Property Transfer Tax – The British Columbia Provincial Government imposes a property transfer tax, which must be paid before any home can be legally transferred to a new owner:
First Time Buyers may be totally exempt for purchases up to $475K and a sliding scale between $475-$500K - if you qualify. See First time Buyers' Guide
Goods & Services Tax – If you purchase a newly constructed home, you are subject to GST on the purchase price.
Property Tax – If the current owners have already paid the full year’s property taxes to the municipality, you will have to reimburse them for your share of the year’s taxes.
Appraisal Fee – When the lending institution requires an appraisal of the home before approving your loan, it may be your responsibility to pay the appraiser’s fee. Appr. $150-$200.
Survey Fee – The lending institution may also require that a survey certificate be presented to them. The purpose of the survey is to formally establish the boundaries of the property and to ensure that all buildings are within those boundaries. Appr. $750-$1000.
Title Insurance – To protect the lender's interest in the mortgaged property in the event there is some discrepancy on title that would create a legal problem, many lenders require title insurance. Title insurance is often a less expensive and acceptable alternative to getting a survey prepared for the property. Appr. $250.
Mortgage Application Fee – Lending institutions may charge a mortgage application fee. This application fee may vary between lending institutions.
Strata Maintenance Fee
Lawyer/Notary Fees - Legal costs for buying a new home with a mortgage are approximately $900 - $1300 for a Lawyer or Notary Public. (Ask if there are any additional fees)
Don’t forget about possible last minute costs
- home inspection fees ($300 - $600)
- moving expenses
- deposits required by utility companies
- household goods:
- kitchen appliances,
- garden equipment,
- garbage cans, tools, window coverings, etc.
- redecorating or renovations
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