Costs of Buying a Home in BC
So you’ve decided to purchase a home. Before jumping in here are some other costs related to buying a home that you must take into consideration.
- Appraisal, if applicable
- Mortgage loan insurance and application fee – if you get a high-ratio mortgage (where you pay less than a 20% down payment) you will have to buy the mortgage loan insurance from CMHC or a private company. For fee descriptions, please go to: www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm
Legal or notary fees and expenses
- Title search
- Investigating title
- Drafting documents
- Land title registration fee
Property Transfer Tax
- Property transfer tax – click to learn more
Pre-paid property taxes or utility bills
- You will need to reimburse the sellers for any prepayments.
- When you buy a newly constructed home, you must pay the GST.
- As of April 1, 2013, purchasers only pay 5% GST on new home.
- Where new home construction begins before April 1, 2013, but ownership and possession occur after, purchasers will pay a temporary, transitional tax of 2% on the full house price.
For more information visit (http://www.bcrea.bc.ca/government-relations/hst-pst-resources/pst-transition-rules)
- Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender will cover this cost, if not, you are responsible. The fee ranges from $150 to $350.
Home inspection fee
- A home inspection is a report on the condition of the home that can alert you to any protential issues such as moisture problems, pyrite, radon gas or urea-formaldehyde. The fee is about $500 to $700, depending on the size and complexity of the inspection.
- To be safe, make the insurance effective on the earlier of either the completion date or the date that you pay the balance of the funds in trust.
- Your lender may require an up-to-date survey of the property. If the seller does not provide the document, you will have to pay to have one done. The fee ranges form $150 to $350.
- If you are buying into a strata (apartment, townhouse) you might have to pay a move-in fee to the strata corporation.
Maintenance and utility costs of your new home
Source: Real Estate Board of Greater Vancouver