You found your perfect home and you negotiated a price you're comfortable with, but did you think about all the other extra fees when buying real estate?  These really add up so you need to be aware and budget for them to avoid any surprises.  Here are a list of fees you can expect:

 

 

 

Also called the Welcome Tax, property transfer tax, land transfer tax, land registration fees, deed registration fee, etc.

 

This tax is based on the purchase price of your property and varies from province to province.  In British Columbia the property transfer tax is 1% on the first $200,000 and 2% on the balance.  So if you purchase a property for $250,000 the tax is calculated as follows:

 

1% of $200,000 = $2,000

2% of $  50,000 = $1,000

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Total tax payable: $3,000

 

Luckily there are exemptions for first-time property buyers.  They are as follows:

For registrations on, or after, February 20 2008, the fair market value threshold for eligible residential property is $425,000.

 

 

For complete details about the program click here for the bulletin issued by the provincial government.

 

 

 

You'll need to use a lawyer to conduct a title search, transfer title in your name, drafting the title deed, preparing the mortgage, etc.  (Budget:  $750 - $1200).

 

 

 

Title insurance protects you against loss caused by defects of title to the property, which includes title fraud. (Budget: $400)

 

 

The lender will usually require an appraisal of your new property to confirm the market value.  The lender uses the appraisal to determine if your purchase price is reasonable for the market. (Budget: $250-$350)

 

 

 

Usually this is provided by the seller but in case it is not then you will have to pay to have one done. It is usually required before the mortgage is finalized.  (Budget: $1,000-$2,000)

 

 

 

It's always recommended to make any offer conditional upon a satisfactory home inspection.

Ensure you hire a certified home inspector.  (Budget $400 - $500)

 

 

 

You'll need at least a fire insurance policy to be in effect on your closing day. You'll also need insurance for your contents after you move in.  Contact an insurance broker for a competitive quote. (Budget: Varies)

 

 

 

These adjustments are calculated by the lawyer and include the property tax and utilities that the seller has prepaid.  (Budget: $1,000 - $3,000)

 

 

 HST

 

You will pay 12% GST on the purchase price of a newly constructed home or condo only.  You may also pay HST on certain resale properties if it was deemed a business transaction with the tax deferred.  (Condo-Hotel)

 

 

 

These are usually paid by the seller or the seller's real estate agent.  They include the financial statements and the strata plan.  They will also outline the strata fees for your unit and the status of the seller's payments, the reserve fund, etc.  (Budget: $100-$200)

 

 

 

Whether you're moving across town or across the country moving can be a daunting task.  You can move yourself and save lots of money or you can hire a moving company to look after everything. (Budget: $500 - $10,000)

 

 

 

Ok, you're in your new place and now you need your utilities hooked up, window coverings, new paint, new furniture, etc.  (Budget: $1,000 - $2,000+ depending on needs)

 

 

If you have any questions about real estate fees or related subjects send me a note Alan.M@shaw.ca or call 778-240-4443