Purchase Costs & Extras

Miscellaneous initial costs associated with purchasing a home.

Inspection Fee

I recommend that you have an inspection preformed by a professional Building Inspection Company and that YOU be satisfied with the resulting report as one of the conditions to your buying the home. The Inspector will bring to light areas where repairs or maintenance are required. This will assure you that the home which you are buying is structurally sound.

• Call me for list of Professional Building Inspectors – Please note we are only providing names & phone numbers; we are not recommending one inspection company over another.

• A Home Inspection normally costs approximately $500 to $750 + taxes

   

Mortgage Application Fee

Some Lenders charge a mortgage application fee for processing your application. If your request for a mortgage is turned down the fee is returned to you. If your mortgage is a CMHC insured mortgage there will be an application fee payable to CMHC in the amount ranging from $75 to $250.

Appraisal Fee

The Lender extending the mortgage will hire an appraiser to ensure that the home you are buying meets its criteria for a mortgage. If you have a substantial Down Payment many Lenders will waive this fee or absorb the cost provided that YOU ask not to be charged for the appraisal.

Legal / Notary Fees

You must retain either a Lawyer or a Notary to act for YOU in the purchasing and mortgaging of the property.

• Call me for a list of Lawyers and/or Notaries – Please note we are only providing a service and do not recommend one Lawyer/Notary over another.
• Currently these fees are approximately $950 to $1000 per property.

Property Purchase Tax

This tax is levied by the Province of British Columbia and is 1% of the first $200,000 of purchase price and 2% of the balance. Note: First Time Home Buyers are exempt from paying this tax. (some restrictions apply)

Home Insurance

All homes must have adequate insurance coverage against fire and other risks of loss, theft, and liability. Your Mortgage Lender requires that you provide your Lawyer/Notary with proof that your insurance is in place by the Completion Date. This is called an Insurance Binder. Often the Insurance Agents charge a fee for providing this Insurance Binder to your Lawyer/Notary; said fee is approximately $25.

Moving Costs

Whether you hire a national moving company or do-it-yourself there will be some costs involved. There are normally discounts available if you move in the middle of the month

Survey Certificate

This may be required by the Lender and if unavailable or is the existing survey is unacceptable to Your Lender than a new one must be prepared. Normally the cost is approximately $275.

• I always endeavors to find an existing survey certificate on Your behalf when required by the Lender.
• An alternative to the Survey Certificate that is accepted by most lenders is TITLE INSURANCE which costs approximately $200.

HST

This Harmonized Sales Tax is applicable only on the purchase of Brand New Homes or substantially renovated homes, land bought from a developer, commercial, and leases. The HST is 12% of the Purchase Price.

For more details go to http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html

Mortgage Brokerage Fee

As there are many varied financing options available to ALL Buyers today, many Buyers use a Mortgage Broker to help them find the mortgage best suited to the Buyer’s individual needs. Normally the Lender pays the Mortgage Broker and the service to the Buyer is free. However, if the Buyer cannot obtain financing from a Bank, Trust Company or Credit Union due to a poor credit history than a Broker may find a private Lender. In this case a negotiated fee would be charged to the Buyer.

Strata Move In Fee

Many strata condo complexes are now charging a fee whenever someone moves in or out of the building. This fee includes installation of protection padding for the elevator and the elevator key. It is also required that you reserve your move-in date with the strata management company several days in advance. Move-in / Move-out fee that is usually $100-$200. 

Adjustments

On Completion, the Lawyer/Notary will adjust certain items that are associated with the property being purchased such a Property Taxes, Property Utilities (Sewer, Water, Garbage), Strata Maintenance Fees, etc.