Property Transfer Tax – When a residence is purchased, a Property Transfer Tax (PTT) is applied. The tax is calculated at 1 per cent on the first $200,000 and 2 per cent 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. Visit www.sbr.gov.bc.ca for more info.
Prepaid property taxes or utility bills – You will have to reimburse the sellers for any prepaid property taxes or utilities.
Mortgage loan insurance and application fee – If you get a high-ratio mortgage (mortgage where you pay less a 20 per cent down payment) you will have to buy mortgage loan insurance from CMHC or a private company. If you qualify for a 5 per cent down payment, CMHC charges an insurance fee that equals 2.75 per cent of the mortgage. If you put 10 per cent or 15 per cent down, your insurance fees will decrease to 2 per cent and 1.75 per cent respectively. The insurance premium usually gets added to your mortgage.
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. The fee may range from $150 - $350.
Survey Fee – Your lender may require an up to date survey of the property. If the seller did not provide you one, you will have to pay to have one done. The fee may range from $150 - $350.
Home Inspection Fee – Most real estate agents recommend that you get a home inspection by a certified home inspector. It may cost you from $150 - $350 for a smaller house. Large houses may cost more.
Legal Fees - Lawyers/Notaries for closing the sale range according to the complexity of the deal and they could range from $600 - $1500.
Disbursements for Land Titles Office – These fees are approximately $300. Your lawyer/notary will arrange this payment.