PROPERTY BUYING COSTS IN BC
Congratulations! You have decided to purchase a home, or are thinking about buying one. You'll be joining the ranks of hundreds of families who realize that home ownership offers a number of benefits including building equity, saving for the future, and creating an environment for your family. When you own your own home, your hard-earned dollars contribute to your mortgage; the equity you earn is yours and over time, your home will increase in value.
In purchasing any property in BC, you will need to plan for some costs above the purchase price of the property.
BC PROPERTY TRANSFER TAX
This is a provincial tax that you will need to pay upon completion of your transaction. The cost is a percentage of the purchase price or fair market value as follows: 1% of the purchase price up to $200,000, and 2% on the balance above. There is an exemption for first time home buyers, and a portion of the purchase price if one of the home buyers is a first time buyer (purchasing a primary residence) increase in value.
HOME INSPECTION FEE
A satisfactory home inspection is often an important condition of the Offer to Purchase. A home inspection is a report on the condition of the home, and generally ranges between $700 – $1000 depending on the size and age of home and complexity of the required inspection.
Your mortgage lender may require the property be appraised at your expense. An appraisal is an estimate of the value of the property. The cost also depends on the size of property and complexity of the appraisal. It is best to check with your mortgage broker or lender prior to entering into an agreement about all additional fees.
The mortgage lender will also require a recent survey of the property to ensure the security of the mortgage.
WATER QUALITY INSPECTION
If the property is not served by a community or public water utility (private well or spring source) you will want to have the quality and quantity of the water tested to ensure that the water supply is adequate, and the water is potable. Any fees for such inspections are the responsibility of the Buyer.
LEGAL FEES AND DISBURSEMENTS
It is the responsibility of the Buyer to pay the lawyer to convey the title of the property. The lawyer will also bill for any disbursements such as land title costs to check on the legal status of the property, community utility adjustments, tax adjustments, strata fee adjustments too name a few (reimbursing the Seller for any prepaid costs). GST Some properties will require .
In addition to the purchase price, such as newly created properties, properties owned by a corporation, and commercial properties.