Expenses

There is a number of expenses you can expect to pay when purchasing a home and once you move in. These include:

Deposit

Typically deposit amount is at least 5% of the purchase price. However, this amount may be negotiated by the buyer and seller. Deposit amount you pay will go towards the down payment.

Keep in mind the minimum down payment is 5% on the first $500,000, and 10% on the amount between $500,000 and $1,000,000, and 20% on the balance over 1 million.

Property Transfer Tax

  • 1% on the first $200,000
  • 2% on the portion between $200,000 and $2,000,000
  • 3% on the portion greater than $2,000,000

PTT Exemption:

First time buyers – purchasing under $500,000 as principle residence

Newly Built homes – purchasing under $750,000 as principle residence

GST

GST is applicable on Newly Built homes and if calculated as 5% of the purchase price.

You may however qualify for a partial GST rebate for newly built homes under $450,000.

Home Inspection Fee

Home inspections are done and paid for between contract acceptance and subject removal. This fee varies depending on the type of home, and can range approximately between $500 – $1000.

Notary Public / Lawyer Fee

You will need to use services of a Notary Public or a Real Estate Lawyer who will assist you in transferring and registering the Title of the property under your name. They will also prepare a statement of adjustments.

Mortgage Insurance (CMHC)

CMHC insurance protects the lender in the case the borrower defaults on the mortgage. Mortgage default insurance is required on all mortgages with down payments of less than 20%, which are known as high ratio mortgages.

CMHC cost varies between 2.80% to 4.00% of the mortgage amount depending on your down payment amount.

Property Taxes & Utilities

Your will be responsible for a per diem amount of Property Taxes & Utilities based on your completion date. This amount will be reflected on your statement of adjustments by your notary or lawyer.

Ongoing Expense Once Moved In

  • Annual Property Taxes & Utility/Water Bills
  • Annual Property & Content Insurance
  • Monthly Strata Fees for Strata Properties
  • BC Hydro (Electricity) & Fortes BC (Natural Gas) bills
  • Monthly Internet, Cable & Home Phone bills (Telus, Shaw)