Costs When Buying Real Estate
Property Transfer Tax
When a residence is purchased a Property Transfer Tax (PTT) is applied. The tax is calculated at 1% on the first $200,000 and 2% on the remainder. The First-Time Home Buyer's Program offers an exemption to the PTT if the fair market value of the residence is $475,000 or less. In all regions there is also a proportional exemption for first-time buyers of homes with a fair market value up to $25,000 above the thresholds. This means in the Greater Vancouver area, homes valued up to $500,000 ($475,000 threshold + $25,000 proportional exemption) will be charged a pro-rated PTT.
Prepaid Property Taxes
Property taxes are either pre-paid on a bi-yearly basis or can be paid monthly. Sellers are reimbursed any amounts that are pre-paid and that amount is calculated on a daily basis from when the buyer takes ownership of the property.
Prepaid Maintenance and Move-in fees
If you are buying a strata titled property, maintenance fees are collected on a monthly basis and are pre-paid for the entire month. Sellers are reimbursed any amounts that are pre-paid and that amount is calculated on a daily basis from when the buyer takes ownership of the property.
Some strata properties charge a move-in fee which is required prior to a new resident moving into his/her new property, This fees can be collected by your lawyer/notary public on close of a property and be submitted for payment to the property management company on your behalf.
Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fees range from $150 to $350.
Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $500 to $1,500 depending on the size of the property and the type of survey done.
Home Inspection Fee
We highly recommend that you get a home inspection done by a certified home inspector. Costs range from $400 to $600 for a condo/townhouse and $500 to $900 for most houses. It's a small price to pay for peace of mind.
Lawyers/Notaries fees for closing the sale can range according to the complexity of the deal. They typically range from $800 to $1,200.
If you are buying a non-strata property, home insurance on that property will be required to be in effect from the day of your Completion. Premiums and costs will vary depending on the value and the type of coverage you get. These costs can also be paid on a monthly basis. Our suggestion is to consult with your insurance broker to provide you with these costs and the type of insurance that will best suite your needs.