When you purchase a residence in B.C. there are a number of closing costs that are associated with the transaction. Here is a guide for what you may be expected to pay in addition to the purchase price:
Property Transfer Tax- Paid to the government of B.C. this is calculated at one percent of the first $200,000 of the purchase price and two percent on the remainder. There is a First Time Home Buyer program which offers an exemption to the PTT if the purchase price is $425,000 or less and a reduced exemption for prices between $425,000 and $450,000. Feel free to contact me for further info on this.
- Appraisal – Before a lender approves your mortgage you will be required to have an appraisal done on your property. If your mortgage is high ratio (over 80% of the value) then the lender will cover the cost…if not….generally I will pay this for you. A standard residential appraisal usually costs about $300.
- Survey fee – The lender may also require an up-to-date survey If the seller cannot provide you with one then the cost can range from $150 to $350
- Title Insurance – Another lender requirement in some cases but would negate the need for a survey. Usually costs about $350.
- Sales Tax – For newly constructed homes only. Contact me for information and calculation.
- Home Inspection fee – Always a wise idea to get a home inspection before signing on the dotted line. This can cost around $300 an up for larger homes.
- Legal fees – Lawyers and notary publics charge fees for closing the sale. This involves disbursements and Land Title fees to transfer the property in to your name as well as the fee to draw up the mortgage documents. This usually cost about $800 - $1,000 for a straightforward transaction.
It is a good idea to factor in these additional costs.…as well as your moving costs…..when buying a new home so you don’t get caught short on your completion day.
Please feel free to contact me for any calculations or quotes concerning your personal situation.
Jerry Sims, AMP
Verico Ambro & Associates Mortgage Consultants Ltd.