Costs to Consider

Costs paid during the mortgage approval process

Home Inspection
A home inspector will thoroughly inspect the property to identify any minor or major defects. Some inspectors will provide estimates on the cost of making repairs. A home inspection will usually cost approximately $400-500.

House Insurance
This provides protection for your home in case of theft, fire, water damage and so forth. Some lenders require that earthquake insurance is provided. It is important to verify what coverage you have as not all policies include earthquake insurance. Proof of insurance is usually required at or prior to closing. With strata properties, condominiums and townhouses, fire and earthquake coverage is almost always included in the monthly maintenance fee. Most strata corporations require owners to purchase insurance to cover third party liabilities such as water leaking onto other units.

Property Appraisal
An appraisal is required to determine the market value of the property. A real estate appraisal will cost between $300 to $500. Most banks will require an appraisal of the property prior to granting a mortgage. In the case of CMHC, Genworth or Canada Guaranty insured mortgages, an appraisal is usually not required as they use electronic appraisal systems.

Closing costs paid at your lawyer or notary

The previous owner of the property may have paid for property taxes, maintenance fees and other expenses past the period of time that they will be occupying the property. They may also be leaving liabilities such as outstanding taxes that will have to be paid prior to the new owners taking possession. The solicitor or notary will prepare a statement of adjustments that accounts for these factors, ensuring that the party using them pays the cost. This is part of the property conveyance process conducted by the solicitor or notary.

Goods & Services Tax (GST), BC Transitional Tax and New Homes
GST is always charged on newly constructed or substantially renovated homes. If the price of your newly constructed home is less than $450,000 and you intend to live in the property as your principal residence, you may qualify for a GST rebate. Effective

Legal Fees
Depending on the complexity of your transaction, legal fees typically range from $1,000 to $1,500

Property Transfer Tax (PTT)
In British Columbia, property transfer tax is paid when you purchase or acquire an interest in a property. The tax must be paid when changes are registered at the Land Title Office. The tax is calculated as: 1% of the first $200,000 of the purchase price or “fair market value” , 2% on the amount between $200,000 and $2,000,000, 3% on the amount between $2,000,000 and $3,000,000, and 5% for amount over $3,000,000.

Survey and Title Insurance
An accurate survey of the property is required by most lenders. This usually can be obtained from the seller’s agent. If it is unavailable, you may need to cover the fee of $250 to $350 to obtain one. Title insurance can often be purchased instead of obtaining a survey. The cost depends on the value of the home; it starts at about $225.

Costs paid after closing

Moving Costs
The cost of moving your household contents to the new home and connecting utilities, telephone, cable, internet, etc.