When buying a home or investment in British Columbia there are some additional costs. Having a Vancouver Realtor who can keep you informed on these costs is integral!
PROPERTY TRANSFER TAX
The Property Transfer tax is charged at a rate of: 1% on the first $200,000, 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and. 3% on the portion of the fair market value greater than $2,000,000.
Buying your first home? You may qualify for some Tax exemptions! Click here to find out how to and if you qualify
MORTGAGE DEFAULT INSURANCE AND APPLICATION FEE
If you get a high-ratio mortgage (less than 20% down payment), you must buy mortgage default insurance from CMHC or a private company. An insurance fee will be charged that varies according to the amount of the down payment (5%,10%,15%). This insurance premium is usually added to the mortgage of your Condo. You will also have to pay an application fee which may vary from $165-$235. Click here for more details on CMHC
Your mortgage lender may require an appraisal of the condo. This can vary from $150-$350 depending on the location and type of the property. I always recommend asking for the lender to waive the fee.
Most Realtors will recommend that you include a Condo inspection as a subject in your offer. Costs may vary from $350-$500 with larger homes costing more.
This is included in your strata fees for Condo owners. Home owners will want to get insurance before closing on the home.
PREPAID PROPERTY TAXES OR UTILITIES
You must reimburse the Sellers for any prepaid taxes or utilities on your Condo. These costs appear in the Statement of Adjustments prepared by your lawyer or notary.
Lawyers/notaries’ fees vary according to the complexity of the transaction. Condo transactions are a bit more complex. Fees may vary from $650 for a simple transaction to $1500.
After all of these costs are taken care of you are on your way to owning your Vancouver property!