Buyer Hidden Costs

Some costs that can creep up on you unexpectedly. Be prepared so you're not disappointed

1. Survey or Real Property Report:

Should the seller not provide you with a survey in the Agreement of Purchase and Sale, a new survey will cost approximately $450.00 and up. In British Columbia, the Real Property report/Survey certificate is the buyers' responsibility.

2. Transfer of title costs:

Cost of registering a transfer of title is calculated by a basic $50.00 fee in British Columbia but may vary from province to province.

3. Legal fees:

This varies according to the lawyer. Make sure you ask what the fee includes. Approximately $850.00 (plus taxes) and up (The preceding fee is based on a purchase price of $400,000.00)

4. Disbursements:

This should include other costs which the lawyer will have to pay on your behalf, i.e. registration fees, photocopies, couriers etc. Approximately $250.00 and up plus taxes.

5. Statement of Adjustments:

Purchaser and Seller are responsible for their share of taxes, fuel & utilities.

6. Home Insurance:

Home insurance varies from one insurance company to another. Contact your broker for rates.

7.Mortgage Application fee:

Processing fee - ask your bank if they charge a fee, as they vary.

8. Mortgage Appraisal:

Usually about $150.00 to $250.00

9. GST:

Residential re-sales are exempt from GST. Most services involved with the transaction will be subject to GST. e.g.:

Real Estate Commission
Lawyer's fees
Appraisals
Processing fees
Home inspections
Insurance
Moving expenses, etc.

10. Property Transfer Tax:

In British Columbia, there is a purchase tax of 1% of the purchase price up to $200,000.00 and 2% of any purchase price above that amount. First time buyers are exempt from this tax providing they are within the qualifying guidelines.

Example for a $150,000.00 purchase;

Survey (may be your responsibility)	$ 450
Title Transfer	$ 50
Legal Fees	$ 850
Disbursements	$ 250
Insurance	$ 500
Mortgage Application	$ 80
Mortgage Appraisal	$ 200
Property Purchase Tax (if applicable)	$6,000
	$8,380
GST on Services	$ 419
Total	$8,799

Therefore, on a $400,000.00 residential purchase, the estimated closing costs would be approximately $8,800.00. This does not include property tax adjustments (it may be possible to pay directly to the city) or a principal, interest and tax payment to your bank each month.

Determining Your Affordable Price Range

Buyer Hidden Costs

Step-by-Step Buying Process

Introduction To Mortgages

Tips for buyers

Tips for Sellers

Property Barry Currently has listed 'For Sale'

Barry Gellner
And
Delaine Dyrdal
RE/MAX Kelowna
Suite 100
1553 Harvey Ave.
Kelowna, BC
V1Y 6G1
Ph. 250-717-5000
TOLL FREE
1-888-213-2333

Kelowna is the destination city of thousands of baby boomers annually and just a short visit will be enough to convince any skeptic of the many advantages of living in this beautiful community. The people are wonderful, the city is beautiful and the weather just can't be beat. If you're in the market for real estate, Kelowna is the oasis you've been looking for.