This is the initial payment towards the purchase of a property. The down payment amount varies and is often based on the mortgage requirements. Insurance is required from CMHC if a down payment is under 20% for a personal residence or 35% for an investment property.
Property Transfer Tax
This is the tax associated with buying and selling property in British Columbia. This amount is equivalent to 1% on the first $200,000 and 2% on the balance of the property purchase price. A rebate may be applicable, please ask for more details.
Government Sales Tax
GST applies to new developments and substantially rebuilt property, and is a 5% tax of the property purchase price. A rebate may be applicable, please ask for more details.
Lawyer/Notary Fees (Conveyancing & Disbursments)
This amount covers the transfer of ownership to you in exchange for funds, the registration of the title and property insurance under the new owner (you). You should budget approximately $1300 for legal fees.
The “Adjustment Date” usually lines up with the possession date of buying a property. Adjustments are made at the lawyer or notary office and are the reimbursement of city taxes, utility bills, and strata fees that the seller may have pre-paid beyond the adjustment date.
Although optional, it is recommended that you have an inspection report completed prior to finalizing the purchase of a home. Having a licensed inspector scrutinize the home you are considering can provide valuable information that will protect you against buying a lemon. A professional inspection costs between $400 to $1000 depending on property size and complexity.
Strata Move-in Fees
Most strata require a move-in fee for elevator booking and protection when getting yourself settled in. These fees are typically $50-$200 depending on the bylaws of the strata you have purchased into.
A home purchase involves more than just the purchase price. Avoid surprises and learn about closing costs.