Costs & Plans

Typical costs associated to purchasing a property.

Understand all the costs:

• Property Transfer tax – Tax payable at the time of sale. 1% of the purchase price for the 1st $200,000 and 2% of the balance. First time homebuyers may have an exemption from this tax
• .5% down – The difference between the bank loan and the insured amount is available under the first time home buyer plan. The is a high ratio mortgage. Fees apply to insure and apply for the mortgage. The property must be the principal residence. Gross debt ratio’s and Total debt ratio’s are 32% and 40% respectively. Min.mortgage term and max. amortization. Other conditions apply. Please ask.
• Notary/legal fees – Typically $450 to $700 plus tax plus disbursements and adjustments. Disbursements the lawyer incurs is approx. $200- $400. Always ask your Notary/lawyer an approx. amount prior to purchasing your property. Every property and client and bank is different and can cause the fees to fluctuate. Adjustments include amounts reimbursed to the seller for prepaid property tax, interest, utility payments etc. Depending on the time of year you purchase the property this amount could be substantial. If the seller has just paid the year of taxes, the proportionate share will have to be reimbursed at the time of sale. A $55 fee applies to file the transfer and mortgage payable to the Government. Hiring a lawyer/notary more info.
• Survey – Most banks require a survey today. The cost is approx $350. Some banks will absorb this at their cost. Talk to your bank at the pre approval stage. Should the bank not require a survey, I suggest you incur this cost and find out exactly were your property lines are. Irregular lots especially. Your making one of the most expensive purchases of your life, $350 is good piece of mind.
• Form F – When purchasing a strata property. This insures the previous owner is up to date with his/her’s strata fees.
• Strata move in fees – Some strata corporations have a move in fee of approx $75 – $100.
• Mortgage – Mortgage application and/or Mortgage broker fees can apply. Ask at your lender at the pre approval stage.
• Gst – Is payable on any new house or substantially renovated home. There are several different options and rebates. Many stipulations can apply to the gst rebate. Click on the link for more information.
• Home buyers Plan – This allows first time home buyers use their rrsp in the purchase. First Time Home Buyers’ Program: Higher Thresholds Effective February 16, 2005
• Beginning today, the fair market value threshold of eligible residential property under the First Time Home Buyers’ exemption program is increased by about 18 per cent to $325,000 from $275,000 in the Greater Vancouver Regional District, the Capital Regional District and the Fraser Valley Regional District and to $265,000 from $225,000 in the rest of the province. A proportional exemption is provided for residences that have a fair market value up to $25,000 above the new thresholds. Changes have also been made to the mortgage pay down limits. Details are available athttp://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/hbp/menu-e.html.
• Home owners grant – Home Owner Grant: For details click here.
• The basic grant can reduce your property tax by as much as $570. The minimum tax payable ($350) ensures that all homeowners (or eligible occupants, which includes an eligible occupant of an eligible apartment, housing unit, land cooperative or multi-dwelling leased parcel) contribute towards the funding of local services such as road maintenance and police protection.Home inspectors – Approx. $350 to $500. It is not ethical for a realtor to suggest you hire any specific Inspector. However a Realtor should give you information on how you can hire a inspector, what to look for in a good reputable company. They should also provide you with a list of home inspectors.