Closing Costs

Your Lawyer or Notary will provide the exact amount of your closing costs, as these costs vary with each property purchase. Below is a list of the typical costs related to Buying real estate.

Lawyer or Notary

You will need a Lawyer or Notary specializing in real estate conveyancing to assist and review your contract of purchase and sale, title search, mortgage documents, and closing details. The lawyer fee is approximately $600 to over $1000 depending on the complexity of the sale and type of property. Be sure to inquire as to whether or not the quote includes "disbursements" or not.

Property Purchase Tax

Property Purchase Tax (PPT) is a Provincial Government Tax required on all property purchases. There are exemptions for first time home buyers. Full exemption is offered to first time buyers purchasing up to $425,000. Prorated exemptions apply up to $425,000, after which there is no exemption.

Bank Appraisal

Your Mortgage Specialist or Broker may require an independent appraisal of the property for the lending institution. Appraisal fees can range from $175-$400 depending on many factors.

Adjustments

Your Lawyer or Notary determines adjustment costs. These costs are a portion of prepaid property expenses such as property taxes and municipal utilities pre-paid by the Seller.

HST

The Harmonized Sales Tax is charged on brand new homes. http://hst.blog.gov.bc.ca/

Home Inspection

A Home Inspector is highly recommended prior to your property purchase. This ensures you are aware of any potential problems related to the property. An inspector will charges between $250 and $1000 plus, depending on the size and scope of the inspection required. A professional home inspector is well worth the effort and money. Mark would be happy to recommend reputable inspectors suited your needs.

Site Survey or Title Insurance

Your Lender requires an up to date site survey of the property, or title insurance. The Seller may be able to provide the site survey, if one exists. Surveys have become expensive and cost between $1000 and $1,500. A good alternative acceptable to your lending institution is Title Insurance. Title Insurance costs approximately $300-$500. It is important to discuss these two options with your lawyer.

Mortgage Insurance Fee

Talk to your Mortgage Broker about this. Generally, if you are putting a 20% down payment or less on a property, you will need to pay for Mortgage Insurance. This cost is a percentage of your mortgage and your lender will give you the exact price when you apply for a mortgage. For more information on Mortgage Insurance, go to the CMHC website http://www.cmhc.ca/en/.

Home Insurance

Typically, your lawyer will advise you on Home Insurance and costs. This cost varies is based on the value of the property. Importantly, coverage should be obtained from the date of Completion, as per your real estate contract.