Now What?

So you have decided to buy a property in Vancouver, arguably one of the most beautiful places in the world.

So what are the steps you ask?

First: Get a pre-approval.

Talk to a mortgage broker, they will inform you as to what documents you need. Its much easier to go ahead and start looking for places once you have this.

See below for a few different mortgage companies that will be able to assist you with this.

 

www.yourmortgagebroker.ca

www.lisaholly.ca

 

Find a real estate agent: This is harder than it sounds, there is over 11,000 in BC so how do you know which one to pick! Open houses are a great way to start, find the area that you are considering and start going through listings that are open during the weekend. It doesn’t matter what the price range is, you will get to know a few agents that way and through casual conversation you will find out if they are knowledgeable and personable. You will be spending a lot of time with them so it is kind of key that you get along!

There are many different areas to live in Vancouver. I primarily focus on the downtown core. There are 8 distinct areas: Crosstown, Tinseltown, Gastown, Yaletown, Coal Harbour, Westend, False Creek North, and the Downtown core.

I will go into a bit more detail on each area in some following posts, each area has its distinct personality and price

Your agent should have a good understanding of the areas and be able to discuss the pro’s and con’s of each area and building. Having your own agent will save you a lot of time and energy.

Then all you have to do is find a place and put in an offer! Once you have an accepted offer, which means you have agreed to a price and now you are going to do some research into the building/house you have potentially purchased. Your agent will go over with you the different types of subjects to which would be suitable to your offer. Typically you will have a week to 2 weeks to review information and then decide if you want to go into a firm and binding contract as long as nothing to major has come up.

 

COSTS ALONG THE WAY

Property transfer tax

The British Columbia province defines this tax and it has to be paid before the purchase can be completed. 1% of first $200,000 and 2% on remaining balance. If you are a first time homebuyer and meet a few requirements this is exempt up to $425,000. For more information visit : http://www.sbr.gov.bc.ca/business/property_taxes/property_transfer_tax/first_Time_home_buyer.htm

Mortgage Application Fee

Varies depending on Lender. $300 - $500

Lawyer or Notary 

These legal fees cover the cost of transferring your new property title and recording it in the Land Title Office. As well, if you are obtaining a new mortgage there is also a fee to prepare and register the mortgage documents.

$600 - $1,000

Building inspection 

This is an option that will most likely be one of your “subject to” in you addendum. You are not required by your lender to get one, but I would highly recommend getting one as it will bring an potential or latent defects in the unit or building to light. $400 - $600

Appraisal fee
Some lenders require an appraiser’s report which confirms that the purchase reflects fair market value. Depending on how much you put down this requirement is sometimes waived: $100 - $200

Property Tax
Property taxes are calculated from January – December and are paid at the end of June. If the property tax for the year, you will be required to reimburse the current owners for your share of the taxes.

Harmonized Sales Tax (HST) 
This is only applicable to newly constructed homes that have never been occupied. You may be eligible for a tax rebate. For more information click on the following link. http://www.cra-arc.gc.ca/E/pub/gp/rc4028/

 Strata fees
This is the monthly fee that you will pay if you buy into a stratified condominium. These prices vary and depend on your unit entitlement.

 Once you have a firm and binding contract you just have to wait until your property closes and then you move in on the possession date!

So there you have it! If you have any questions please don't hesitate to send me an email @ info@jdhorlings.com

Happy Buying!

JD

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