DRUMMOND Marketing Group
your local Ridge Meadows, Tri Cities REALTORS®
Our passion is matchmaking buyers & sellers like you
We will help you complete your financing and inspections, and close on the transaction. Our top priority is to make sure that your home buying experience is pleasant, cost-efficient, and successful.
If you’ve decided to buy a home, it’s important to go into the process knowing all of the costs involved beyond the asking price of the property.
Here’s an overview of costs involved.
Lenders may charge a mortgage application fee, which will vary depending on the lending institution.
The federal government requires high-ratio mortgages (with less than 20% down payment) to be insured against default. The cost ranges between 1.25 to 3.75 per cent of the mortgage amount which is added to the mortgage principal.
Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender will cover this cost, if not, you are responsible. The fee ranges and is typically as much as $300.
Lenders may require a survey of the property. Survey costs vary.
A home inspection is a report on the condition of the home that can alert you to any potential issues such as structural and moisture problems, as well as electrical, plumbing, roofing and insulation. Fees can range from $500 - $700 depending on the size of the home and the complexity of the inspection. Some inspectors have surcharges for a secondary suite, a crawlspace, over even an older home.
A GST rebate equivalent to 36% of the GST paid is available for new homes priced up to $350,000 and a partial rebate on new homes priced up to $450,000.
Buyers will also pay the GST if payable on services such as appraisals and home inspections and survey fees.
The PST is generally not payable on services except for legal and notary fees. Both the GST and PST are paid on legal and notary fees.
This is a new tax coming into effect on April 1, 2013. It applies to the sale of new residential homes that are 10% or more complete on April 1, 2013, with ownership or possession occurring on or after April 1, 2013 and before April 1, 2015.
Home buyers in BC pay a provincial Property Transfer Tax (PPT) when they buy a home. The tax is charged at a rate of 1% on the first $200,000 of the purchase price and 2% on the remainder.
First-time home buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $475,000. There is a proportional exemption for between $475,000 and $500,000. At $500,000 and above the rebate is nil. Ask us for information on more cost saving programs.
Some lenders require property buyers to add property tax installments to monthly mortgage payments.
A buyer typically is required to reimburse the seller for any prepayments.
If the owner dies, this type of insurance will pay off the balance owing on their mortgage.
Most lenders require property buyers to carry fire and extended coverage insurance and liability insurance.
Buyers will a mortgage will be required to buy home insurance. To be safe, make the insurance effective on the earlier of either the completion date or the date that you pay the balance of the funds in trust.
Most lenders also require property buyers to carry fire and extended coverage insurance and liability insurance.
Legal or notary public fees and expenses will likely apply to assist with drafting documents and ensuring the title of the home is transferred properly and without incident.
Moving fees vary depending on the distance moved and whether professional movers do all of the packing. Rates vary.
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Contact us today for tips on what your first steps should be
and to start recieving emails of property listings.
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