Buying costs

Did you know?

That the buyer does not typically pay anything to their buyers agent? All commisions are generally paid by the seller of the property to their listing agent, which is then shared with your buyers agent.  

This arrangment alone makes it a no brainer for the buyer to hire a professional REALTOR. 

Mortgage application

Lenders may charge a mortgage application fee, which will vary depending on the lending institution.

Mortgage insurance

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.

Appraisal fees

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.

Land survey fees

Lenders may require a survey of the property. Survey costs vary.

Home inspection fees

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.

Provincial Sales Tax

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.

Property Transfer Tax

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 $500,000. Ask us for information on more cost saving programs.

Property taxes

Some lenders require property buyers to add property tax installments to monthly mortgage payments.

Pre-paid property taxes or utility bills

A buyer typically is required to reimburse the seller for any prepayments.

Mortgage life insurance

If the owner dies, this type of insurance will pay off the balance owing on their mortgage.

Fire and liability insurance

Most lenders require property buyers to carry fire and extended coverage insurance and liability insurance.

Home 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

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

Moving fees vary depending on the distance moved and whether professional movers do all of the packing. Rates vary

Contact us today for tips on what your first steps should be

and to start recieving emails of property listings.

 (604) 817-8664  | drummondteam@gmail.com

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