Annette Thomas

Vancouver Full-time Professional Real Estate Specialist

"I love what I do and it shows"

  • Cell: (604) 773-2451
  • Office: (604) 684-6155
  • Fax: (604) 684-4155
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Closing Costs soon add up when you are purchasing a new home.
 
Here is a guide to some of the common closing costs (please seek independant legal advice from your lawyer or notary.)
Property Transfer Tax (PPT) 1% of first $200,000 and 2% on the rest
This provincial tax is levied when property changes hands
 
First Time Buyers may be totally exempt for purchases up to $475K and a sliding scale between $475-$500K -  if you qualify! See First time buyers guide 
 
Confirm the amount with your notary /  lawyer)
 
Goods & Services Tax (GST) 5% applicable on NEW home purchases.
 

GST is charged on ALL new homes, condominiums and townhouses.

 

In BC, there will be a "GST Transition Tax" of 2% in effect until April 2015 but it is dependant on the % built at the time of the transition from HST to GST. See BC Transition Tax on New Housing

 

(The British Columbia new housing rebate is not available where the tax became payable after March 31, 2013. Prior to this date see http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/cnstrctn/nwhsng/bc/mxrbt-eng.html )

 
Lawyer/Notary Fees
 
Legal costs for buying a new home with a mortgage are approximately $950 - $1150 for a Lawyer or Notary Public.
It is important to understand what is or is not included in an advertised conveyancing fee as they soon add up. Ask the Lawyer or Notary what additional charges are not included in their fee, such as registering the mortgage, land title transfer registration fee and miscellaneous office disbursements (photocopying, courier, Fax etc)
Services fees also have both GST and PST charged. 
 
Adjustments / Disbursements
 
There a some closing adjustments which have to be calculated to cover items such as municipal property taxes, municipal water and sewer fees, strata maintenance fees, rent and security deposits.
 
Each of these items will be pro-rated by your lawyer or notary.
i.e. Municipal taxes  [$ total for year /365] x  # of days until the end of the year.
 
Other costs:
There could also be other fees that will need to be paid such as mortgage appraisal, survey certificate or title insurance just to name a few. 
 
All of the above costs will be prepared into a Statement of Adjustment by your lawyer or notary.
 
Please seek independant legal advice on these items
 
 
Example of $500,000 apartment closing costs
 
Property Transfer Tax  $8000 (1% of first $200K % 2% on the remainder)

                                     First time home owners who's purchase is above $475K exemption so will pay this amount.

 

Property Inspection      $460 - $650

 

Appraisal Fee (Mtg)      $265 & up (most mortgage lenders do not charge this fee - when applying for a mortgage ask about their fees - most will absorb this fee unless there are unusual circumstances).

 

Mortage Insurance       Fee can be added to mortgage amount (CMHC bases the amount on the purchase price and % of down payment - if you are putting >20% down this fee does not apply)

 

Property Tax (City)       Calculated by lawyer if pre-paid 
                                        [# of days to end of year] x [$ taxes/365 days] approx.

 

Strata maint. Fee          Calculated by lawyer [# of days left in month] x [maint. $ x 12/365] approx.

 

Don't forget:
 
Home insurance           Get insured!! (see Insurance & condo insurance page on website)
 
Moving Costs                Get quotes & ask them about their bonding/insurance for any items damaged.
 
Utilities                           See links page - you can open or transfer your account easily
                                        Do it 4 weeks before you move so there is a smooth transition
 
Service hook-up fees   Check with provider for hook-up fees & any special offers
Annette Thomas
Cell:(604) 773-2451
Office:(604) 684-6155
Fax:(604) 684-4155
RE/MAX Crest Realty (Westside)
#2 - 1012 Beach Avenue
Vancouver, British Columbia
V6E 1T7 Canada