Your Costs
- Don’t forget the tax
- The 5% GST applies to new housing. However, there is a rebate, to a maximum of 2.5%. If your home costs less than $450,000. These is no GST on resale housing unless the home has been substantially renovated, and then the tax is applied as if it were a new home.
- Appraisal fee
- If your loan is not insured, your lender may require a property appraisal at your expense. A basic appraisal for mortgage cost between $150-$250.
- Property taxes
- If you have a high-ratio mortgage, your lender may require that you have your property tax installments added to your mortgage payments.
- Survey fee
- Your lender will require an up-to-date survey. Ask the vendor to provide one as a condition of your Offer to Purchase, or you will have to pay to have one done.
- Property insurance
- The insurance covers the replacement value of the structure of your home and its contents. Your lender will insist on this because your home is the security for your mortgage.
- Prepaid taxes or utility bills
- You will have to reimburse the vendor on a prorated basis if some bills have been prepaid beyond the closing date.
- Land transfer tax
- In British Columbia there is 1% of the first $ 200,000 and 2 % of the remaining of the purchased price.
- Service charges
- You’ll be charges a fee to hook up new services and utilities, such as your telephone, at your new home.
- Lawyer (notary) fees
- Lawyers’ fees for a mortgage range widely depending on the complexity of the deal but will probably be at least $800.
- Mortgage loan insurance premium and application fee
- If you have a high-ratio mortgage, your lender will require mortgage loan insurance provided by CMHC or a private company. The insurance will cost between 0.5% and 3.25% of the amount of the total mortgage and can be included in the mortgage. The application will range from $75 to $235 depending upon how the lender processes your application.
- Mortgage broker’s fee
- A broker may charge a fee to find you a lender.
- Condominium fees/Strata fees
- Condominiums or strata charge monthly fees for common-area maintenance, such as grounds keeping and carpet cleaning. Fees will probably be at least a hundred dollars per month.
- Home inspection fee
- Inspection on a house can average about $300 for a home priced under $500,000. Larger, more expensive homes cost more to inspect.