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.:

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 $400,000.00 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.

 

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