Property Transfer Tax - When you decide to buy your home 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. In all regions there is also a proportional exemption for first-time buyers of homes with a fair market value up to $25,000 above the thresholds. This means in the Greater Vancouver area, homes valued up to $450,000 ($425,000 threshold + $25,000 proportional exemption) will be charged a pro-rated PTT. For more information, please visit http://www.sbr.gov.bc.ca/individuals/Property_Taxes/Property_Transfer_Tax/first_Time_home_buyer.htm
Home Inspection fee - Most REALTORS® recommend that you get a home inspection by a certified home inspector. It will cost you from $220 to $400 for a smaller house. Large houses may cost more.
Legal fees - Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they should range from $500 - $1500.
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 (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.
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. The fee ranges from $200 to $350.
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. The fee ranges from $150 to $350.
HST - The Harmonized Sales Tax (also known as the new BC HST) is 12% tax applicable to most goods and services, including new homes, real estate, and property. The new B.C. HST 12% Tax is the combination of the Federal Goods and Services Tax (5% GST) and the Provincial Sales Tax (7% PST). The B.C. HST program will give partial rebates for new BC homes priced up to $400,000. The government will give these homebuyers a partial five per cent BC HST rebate on the provincial tax side which makes any new B.C. home or Vancouver property $400,000 or less no more expensive than it is today.
Scenario: Based on a purchase price of $600,000 for a new BC or Vancouver house, the homebuyer would pay a total of $72,000 in BC HST taxes (12% on $600,000). With the homebuyer HST rebate for purchases above $600,000, the homebuyer would receive the $20,000, thus reducing their purchase cost to $52,000 in taxes for a total of $652,000. http://www.vancouver-real-estate-direct.com/HST/index.html
Disbursements to Land Titles Office - These fees are approximately $300. Your lawyer/notary will arrange this payment.
To find a Realtor in Vancouver or Richmond area please call to Oleg at 604-719-4490 for free consultaion or home evaluation.