Completion Costs
There are a number of additional costs associated with buying a home that you should be aware of prior to making your purchase. Rob and Erina can help explain these buying costs to you:
| Completion Cost | Description | Amount | Mandatory? |
| Property Transfer Tax |
When a residence is purchased a Property Transfer Tax (PTT) is applied. The tax is calculated at 1% on the first $200,000 and 2% on the remainder. The First-Time Home Buyers' Program offers an exemption to the PTT if the fair market value of the residence is $425,000 or less. For more information please visit: www.rev.gov.bc.ca/rpt/ptt/ptt.htm |
1% on first $200,000 and 2% on remainder | Yes unless First Time Home Buyer |
| Mortgage Loan Insurance and Application Fee | If you get a high-ratio mortgage (a mortgage where you pay less than a 20% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. If you qualify for a 5% down payment, CMHC charges an insurance fee that equals 3.25% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2% and 1.75% respectively. The insurance premium usually gets added to your mortgage.
You will also have to pay an application fee. CMHC's standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal. |
1.75% - 3.25% for insurance + application fee |
Yes if it applies |
| Appraisal | Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. | $150-$350 | Yes if it applies |
| Survey Fee | Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. | $150-$350 | Yes if it applies |
| Home Inspection Fee | Most REALTORS® recommend that you get a home inspection by a certified home inspector prior to purchasing a home. A home inspection report will inform you of any possible problems with the home. | $300-$500 | No, but highly recommended |
| Legal Fees | Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they should range from $600 - $1500. | $600 -$1500 | Yes |
| Disbursements to Land Title Office | These fees are approximately $300. Your lawyer/notary will arrange this payment. | $300 | Yes |
| GST | If you buy a newly constructed home, you must pay the 5% GST. However, if your house is less than $450,000 you may be eligible for a rebate. For more information, please visit www.cra-arc.gc.ca/tax/business/topics/gst/construction/menu-e.html | 5% of purchase price | Yes, if brand new home |
| Prepaid property taxes, utilities bills, strata fees | You will have to reimburse the sellers for any prepaid property taxes, utilities and/or strata fees. You will be responsible for all of these expenses from the Adjustment Date onwards. | varies | Yes if applies |
Other Expenses to consider include:
- Moving expenses
- Homeowner's insurance
- Property Tax
- Strata/Condominium Fees
- Utility/cable/phone expenses
Source: Realtylink.org