Buyers should be aware of ALL the costs associated with buying a property, not just the purchase price. Below are expenses that you need to prepared for:
Deposit - paid upon your offer being accepted and possibily increased once subjects are removed OR paid only when subjects are removed. This is held in trust and forms part of your downpayment.
Mortgage Insurance Premiums (CMHC or Genworth) - required when downpayment is less than 20% of the purchase price. Premiums may apply in some circumstances.
Appraisal Fees - an appraisal gives the lender a professional opinion of the value of a home you are buying, building or refinancing. Only required in some circumstances.
Home Inspection - this is not required to get mortgage financing but is important to many buyers and is often a condition in the contract. The cost is usually around $500.
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 blanklet policy.
Legal Fees - 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 seller have prepaid such as property taxes.
Purchase Taxes (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 Govt of B.C. website for more details.
For any further questions please contact Danielle Grundy at firstname.lastname@example.org or 250-863-2433.