GST
If you buy a newly constructed home or a substantially renovated home, you must pay the 5% GST. Depending on your purchase price, there will be a GST rebate. Calculate your rebate at http://www.bcrealestatelawyers.com/gst-calculator/
Property Transfer Tax (PTT)
When a residence is purchased a Property Transfer Tax (PTT) is applied. The tax is calculated at 1% on the 1st $200,000 and 2% on the remainder until $2’000’000 in value. After $2’000’000, the PTT is 3%. There are certain exemption that may apply. For up to date information please visit: www.rev.gov.bc.ca
Mortgage Loan Insurance and Application Fee
If you get a high-ratio mortgage (a mortgage where you pay less than a 20% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. This insurance can range from 3.60% to 1.8%.
Mortgage Application Fee
Some lenders may require borrowers to pay for an application fee. The mortgage application fee is also called an appraisal fee at other lenders. The Fee is generally $250. You will also have to pay an application fee. CMHC’s standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal.
Appraisal
Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers the cost otherwise you are responsible for covering the cost. The fee ranges from $150 to $350.
Survey Fee and/or Title Insurance
Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. Surveys can cost up to $700. However, in recent years, lenders have required Title insurance instead of a survey. Title Insurance is generally much cheaper and costs between $100 - $250.
Home Inspection Fee
I recommend that you get a home inspection by a certified home inspector. This will give you peace of mind by removing the uncertainty when purchasing a home. It will cost you anywhere from $350 to $1000 depending on type and size of dwelling.
Legal Fees
Lawyers/Notary fees for closing the sale vary according to the complexity of the deal but they should range from $600 - $1500. Disbursements to Land Titles Office - These fees are approximately $300.