Information for Buyers

You should be aware of some other costs in addition to the price of a home. Some of these costs are one-time payments, while others represent continuing monthly or yearly payments.

 

Home Inspection

Inspection service covers (Roofing, Exterior, Interior, Foundation, Structure, Electrical, Plumbing system, Heating system, and etc.)

 

Deposit

The size of a deposit can vary. Deposit would likely be 5 – 10% of the purchase price. (Deposit are agreed upon between buyer and seller)

 

Property Transfer Tax

1% of the first $200,000.00 & 2% of the balance is payable to the provincial Government at the time.

 

Property Taxes

After the tax due date (most lower mainland areas taxes are due on the 1st business day in July) you will be required to pay a portion of the taxes for the balance of the year. This also applies to utilities (water, sewer & garbage) if they are billed separately from the property taxes.

 

Mortgages

Some lending institutions charge a mortgage application fee to process your application. Your lending institution may require an application fee and an appraisal fee. When you renew a mortgage some institutions will also charge a fee

 

Appraisal fee

When you apply for a mortgage. Your lending institution will ask for an appraisal to appraise the property you about to purchase.

 

Property Insurance

Insurance on your home covers the replacement value. For single family homes, the lending institution will require written proof of fire insurance coverage.

 

Legal Costs

Legal costs can vary. A lawyer/notary should review every real estate transaction. Fees are determined by lawyer/notary. When requesting a quote, it’s important for the buyer to understand what is or is not included. The costs that are usually included in a quote are professional fees, land title search and registration fees and miscellaneous office disbursements. Taxes are usually added to fees and disbursements as with other services and products.

 

Survey Certificate (If required)

Survey Certificate maybe required in a sale of a property, when you purchase a resale home. Survey Certificate is a drawing that shows the lot lines and size, as well as the "improvements", fences and other man-made objects, which see any history changes to the home and property.

 

Moving costs

Costs are determined by the moving company. Price can vary depending on time.

 

For Strata Homeowner

Form A - Certificate of Full payment of Maintenance Fees to confirm that strata fees are paid up to date.

Insurance Certificate - confirmation of insurance coverage on buildings & common property

Some strata may require you to pay a move-in fee.

 

The other costs once you have purchased your home:

Mortgage Payment

Property Taxes

Servicing, Maintenance or Repair your home

Homeowner's Insurance

Utility Service charges (Cable, Telephone Services, Electricity, Gas Services, and Water)

Strata maintenance Fees (For Strata Homeowner)

 

(For more information on Cost of buying go to the link)

https://www.rebgv.org/buying-costs

FIRST TIME HOME BUYER

 

May be exempt from paying the Property Purchase Tax if:

  • You are a Canadian Citizen, or a permanent resident of Canada
  • You have lived in British Columbia (B.C) for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a BC resident during the 6 years before the property registration date.
  • You have never owned an interest in a principal residence anywhere in the world at any time.
  • You have never received a first time home buyers exemption or refund.

 

Property Requirements

  • The fair market value of the property (land plus improvements) is not more than the qualifying value of $475,000 (only if purchasing an existing home).
  • The land is 0.5 Hectares (1.24 acres) or smaller.
  • The property will only be used as your principal residence.

 

Occupancy

  • IF you purchase an existing home, you must move into the home within 92 days of the date you register title to the property.
  • If you purchase vacant land, you must build and move into your new home within 1 year of the date your register title to the land.
  • You must continue to use the property as your principal residence for the remainder of the first year. You retain part of time exemption if you move before the end of the first year.

 

(For more information on First Time Home Buyers' Program go to the link)


http://www.sbr.gov.bc.ca/individuals/Property_Taxes/property_taxes.htm

These comments are for information purposes only and do not constitute legal advice.