/* Change Header Color */ h1, h2, h3, h4, h5, h6, .h1, .h2, .h3, .h4, .h5, .h6 { color: #000000 !important; } ‚Äč /* Change Text/Paragraph Color */ p { color: #F41A7D !important; }

Closing Costs for Buying a House In BC

Dated: February 15 2021

Views: 232

Are you a resident of British Columbia and thinking of buying a home? Is this your first property? Do you need a refresher on the costs of buying a home? If you said yes to any of those questions you have come to the right spot.

First off, I want to give you a massive CONGRATULATIONS. It's a big decision to get into the real estate market or to sell your home where you have built memories. A home is one of the largest purchases most Canadians will make in their life time. 

You may be feeling a little overwhelmed on where to start and what you need to put money aside for. Take a deep breath and relax. Here is a list of the most frequent costs of BUYING a home in British Columbia. 

Lawyer/Notary Fees

Approximately $600-$1200 which includes searching the title, examining the title, preparing all the final legal documents, Land Title registration and service fee.

Home Inspection

You should almost always apply a home inspection as a condition in the contract so you know exactly what major or minor repairs will need and the estimated time for them. The fee charged is approximately $500 depending on the size of the property.

Deposit

Usually paid upon final subject removal and is approximately 5% of the agreed purchase price. The deposit tends to be in the form of a bank draft and is kept in a trust account by the buyers agents brokerage. 

Mortgage Default Insurance & Application Fee

The federal government requires that anyone who puts less then a 20% down payment to have insurance in place aginst default. The insurance premium is usually applied to the principle amount of the mortgage and can range between 0.60 to 3.85 per cent of the mortgage value. There is PST to be paid on the insurance but it must be paid as a lump sum. You will also have to pay an application fee of around $235.

Land Transfer Tax

When you purchase a home in British Columbia, you pay a property tax of 1% on the first $200,000 of the purchase price and 2% on the remainder up to and including 2 million dollars. Qualifying first time home buyers may be exempt from this tax if the purchase price is up to $475,000. 

Title Insurance 

Most lenders require insurance to be in place if there are any disputes on property ownership. This insurance is purchased through your lawyer or notary and ranges between $100-$300.

Property Insurance 

This insurance covers the cost of replacing your home and contents in the event of an insurable loss. Property insurance must be in place on closing day. Prices vary depending on many different factors including location, size, price, age etc. 

Adjustments for Utilities/Property Taxes

These are the expenses that the seller has already paid for, like property taxes and utilities. Upon completion, the buyer must reimburse the seller for their prepaid portion. 

Goods and Services Tax

When purchasing a newly built home or one that has been substantially renovated, GST of 5% of the purchase price is collected. Many of the services with purchse of a home also include GST, including appraisers, lawyers and home inspections. 

Appraisal Fee

Before your lender can process a final approval on your mortgage they may require an appraisal of the property. Sometimes the lender may cover the cost. If it is your responsibility the cost could range from $300-$450 plus GST.

 

Land Survey Fee

The lender may require a current survey of the land to be performed if the seller doesn’t provide the buyer with one. The cost usually ranges from $150-$350.

Moving Expenses

This expense is completely optional and up to your circumstance. You may have to hire movers if your move is substantial.

Water Quality Inspection

If the property is in a rural location and water is supplied via a well, you may be required to get the quality of the water tested to ensure it’s safe. The cost can range between $200-$300. Sometimes you can negotiate within the contract to have the seller cover this cost. 

New Locks

Price varies on style of lock and how many need to be replaced. 

Strata Fees

Price varies depending on the square footage of your strata lot (unit). These fees are paid monthly to the strata corporation and help to cover common expenses of the whole strata corporation (ie. maintenance, repairs, upgrades etc.). 

Strata Documents

With strata properties, your real estate agent will recommend looking over 2 years worth of strata meeting minutes along with a Form B provided by the Strata Corporation. The cost of these documents range from $100-$200 depending on timing and if a rush is requested. 

But what about the Realtors® commission??

No need to sweat here. Using a Realtor® to purchase a property is a FREE service. The Realtors® commission is paid by the Seller from the proceeds of the sale.

When making such a large purchase it is very critical to make sure you have a licensed Realtor® to guide you through the process and make sure you are protected.

Your Realtor® will answer all your questions, make sure your kept up to speed with any market changes, schedule and be there for all showings, help you write and negotiate any offers and much much more.

If you're looking for an experienced Realtor® to be there for you before, during and long after you move into your new home to be your trusted advisor then contact Ashley Chersinoff today!

Ashley Chersinoff

Royal LePage Brookside Realty

604.217.0169

ashleychersinoff@royallepage.ca

Serving Maple Ridge, Pitt Meadows, Mission, Abbotsford and surrounding areas. 

Blog author image

Ashley Chersinoff

Hey everyone!! Meet Ashley, a previous insurance agent for 11 years, turned real estate agent. She lives every day feeling grateful for the life she has. She have been blessed with the opportunity t....

Latest Blog Posts

25 Cheap Ways To Upgrade Your Home

Are you thinking of making a move or want to spruce up your home this year and don't want to spend a fortune on upgrades? If so, here is a great list of ways that you can do just that without

Read More

Closing Costs for Buying a House In BC

Are you a resident of British Columbia and thinking of buying a home? Is this your first property? Do you need a refresher on the costs of buying a home? If you said yes to any of those questions

Read More

ACHIEVE MORNING PERSON STATUS

Ever wish you could become one of those rare morning people? The ones that wake up with a start, feeling refreshed and energized. The ones that get in that morning workout or wrap up some work

Read More