Typical Buyer Expenses
The Down Payment:
Lending institutions usually require a down payment of minimum of 10% (Major Banks) of the purchase price of the home. Additional fees (CMHC or Mortgage Default Insurance) apply if your downpayment is less than 20%. For further information, visit http://www.cmhc-chl.gc.ca/en/co/moloin/moloin_010.cfm.
Property Transfer Tax – In British Columbia, the Government imposes a property transfer tax for any home to be legally transferred to a new owner. The amount of the PPT is 1% on the 1st $100,000 plus 2% on the balance. There are some exemptions from this tax, for further information visit www.sbr.gov.bc.ca/business/Property_Taxes/Property_Transfer_Tax/ptt.htm.
Property Tax – Paid directly to the City. If payments have already been made, the lawyers will adjust these amounts upon completion of the sale.
GST – Applicable on new home sales.
Appraisal Fee - May be required from your lending institution before approving your loan.
Survey Fee – May be required from your lending institution. The Survey establishes the boundaries and building specifications of the property.
Mortgage Application Fee – Some lenders may charge a fee for an application submission.
Fire & Liability Insurance – Financial institutions may require you to purchase an insurance policy which guarantees, in the event of fire, the lender will receive the balance owing on the loan.
Life & Disability Mortgage Insurance – Additional insurance available for you at your option to ensure the outstanding mortgage balance is paid if you die or become disabled.
Legal Fees – A Notary or Lawyer will act on your behalf to transfer home ownership from the seller to the buyer and register it with the Land Title Office.
Home Inspection – Performed by a certified or licensed Home Inspector. Determines the present condition of the home’s major systems, based on visual inspection of accessible features. It focuses on the performance of the home, rather than cosmetic, code or design issues.