The Costs of Buying

Transaction costs related to buying a property in BC


To help you in your planning, the following transaction costs are typically borne by the buyer.

Home Inspection:
   

A home inspection accomplishes two important goals. First, it gives you a chance to determine the condition of the house, its structural soundness, and the condition of its mechanical systems. Second, it brings any problems to the seller’s attention at a time when they can be resolved before closing a sale. It is essential that you have an inspection done on any property that you are considering buying.

Appraisal Fee:   

If your lender requires an appraisal of the home before approving your loan, it may be your responsibility to pay the appraiser’s fee. You will need to confirm this with your mortgage adviser.

Deposit:  

This is most often paid upon the removal of all subjects, prior to completing the purchase of your home. A deposit is intended to show good faith on the part of the buyer in going through on the purchase upon the completion date. It is included as part of the total purchase price.
 
Title Insurance:  

If your down payment is less than 20% of the purchase price, CMHC fees apply and you will most likely need to purchase Title Insurance. Increasingly, even for mortgages where the downpayment is greater than 20% the lendors are requiring title insurance on the property. 
You will need to discuss this with your lender.

Legal Fees:  

This is the cost associated with registering the transfer of ownership from the seller to the buyer with the Land Title and Survey Office. If you require a mortgage, there will also be a charge to prepare and register the mortgage documents on title.

Property Transfer Tax: 

The British Columbia Provincial Government assigns a property transfer tax, which must be paid before any home can be legally transferred to a new owner. First time home owners may be exempt from this tax. For more information, go to the Property Transfer Tax Office website or talk to your lender.

Goods & Services Tax : 

If you purchase a newly constructed home, you may be subject to GST on the purchase price, which is up to 5% of the purchase price. There may be some rebates available depending on the value of the home. For further information, contact the Canada Revenue Agency. 

Property Tax :  

If the current owners have already paid the full year’s property taxes to the municipality, you will be required to reimburse them for your portion of the year’s taxes. If they have not, they will be required to reimburse you for their portion. The lawyers will calculate this as part of the statement of adjustments

Moving Costs:  

This is dependent upon your moving needs and how much professional assistance you will require.

Home Insurance