Buying a Home is More Than the Purchase Price!

So,,, deep breath, when you set out to buy a home, especially that first home! keep in mind there can be extra expenditures.  Below is listed some of the areas where extra fees, above and beyond the purchase price of your home, may occur.  Don't let this stop you or intimidate you from purchasing.  A good realtor and/or mortgage broker will help you through all of the steps in purchasing your home.

Deposit - paid upon your offer being accepted and possibly increased once subjects are removed OR paid only when subjects are removed.  This is held in trust and forms part of your down-payment.

Appraisal Fees - an appraisal gives the lender a professional opinion of the value of the home you are buying, building or refinancing.  Only required in some circumstances.

Home Inspection - this is not required to get mortgage financing but is opted for by many buyers.  Many contracts are written as "subject to an acceptable home inspection'.

Land Survey or Title Insurance - most lenders will require a current Land Survey or Title Insurance. Ask your lawyer about homeowner's title insurance, it is well worth the cost.

Fire Insurance - you will need to provide for adequate Fire Insurance to cover the value of the home (not contents) and to name the Loss Payable as the mortgage lender.  Strata Properties are usually covered under the Strata Corp's blanket policy.

Legal Feels - a lawyer or notary will charge you professional and disbursement fees for conducting searches, registering the mortgage and any Title Transfers.

Closing Costs - you should expect some closing adjustments at your lawyer's office for bills that the seller9s0 have prepaid such as property taxes.

Mortgage Broke Fees - rarely apply to most mortgages but can in some circumstances.

Purchase Taxes (HST/GST) - please confirm if applicable with your realtor or lawyer.

Property Transfer Tax - 1% of the first $200,000 and 2% of the balance (ex. $6000 on a $400,000 purchase)  First Time Home Buyers may be eligible for an exemption.  Visit the Government of BC website for more details.

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