Useful infoUpfront Costs
Once you have determined a home price range you can afford and are pre-approved at a financial institution for the type and amount of mortgage you qualify for, you should calculate the associated costs involved in the transaction.Mortgage Loan Insurance
If yours is a high ratio mortgage (less than 25% down payment), you may need mortgage loan insurance. This may range in cost from 0.5% to 3% of the loan amount and may be either added to your mortgage or paid out upon closing.Appraisal Fee
An appraisal on the value of the home may be required by your mortgage lender. Fees may range from $200 to $400.Deposit
A nominal amount of $1000 may be made when your Offer to Purchase is accepted and increased to $5000 or $10,000 when all conditions/subjects are removed. At times, a deposit in the amount of 5% of the purchase price may be required.Down Payment
At least 5% of the purchase price is usually required for a high-ratio mortgage and at least 25% of the purchase price is usually required for a conventional mortgage.Home Inspection
It is highly recommended that you get this done in order to identify home defects prior to closing. A CAHI(BC) certified inspector will charge about $400.Property Transfer Tax
This provincial charge is based on the property’s purchase price. The rate is set at 1% on the first $200,000 and 2% on the balance.Prepaid Property Taxes and/or Utility Bills
To reimburse the seller for pre-paid costs such as property taxes which are paid on July 1.Property Insurance
The mortgage lender requires this because the home is security for the mortgage. Property insurance must be in place on closing day.Legal Survey
The mortgage lender may ask for a legal survey of the property to stake and certify legal lot lines and give accurate dimensions. Costs vary but may range from $1000 to $2000.Site Survey
You may wish to obtain a site survey showing all buildings as they are situated on the property at cost of about $350.Plot Plan
Usually this plan is supplied by the seller showing lot lines and dimensions at a cost of under $10.Wood Stove & Chimney Inspection
Usually this report is provided by the seller to ensure safety and home insurance requirements have been and can be met. A WETT certified inspector will charge about $100.Water Quality Inspection
Usually this report is provided by the seller to ensure the well water quality meets standards. The cost is about $125 to have water sent to a nearby laboratory for testing.Well Inspection
Usually this report is provided by the seller to ensure that both the well water volume (gal/min) and condition of the well (pumps, switches) is adequate. The cost for this is about $250.Septic System Inspection
Usually this report is provided by the seller. If a recent septic inspection isn’t available then it is advisable to get this done. Both the size of the septic field in relation to the size of the home as well as the functionality of the septic system is assessed. A qualified inspector will charge about $150 to $300 for this service.Title Insurance
Your lender or lawyer/notary may suggest title insurance to cover loss caused by defects of title to the property at a cost of about $150.Legal Fees and Disbursements
Lawyer’s fees are generally about $500. Title registration and other conveyance costs are about $300 to $500 depending upon circumstances.Government Sales Tax (GST)
Visit Canada Revenue Agency’s website if you consider the GST tax may apply to your property purchase.Other Costs
You may have other costs to consider:
- Moving Expenses.
- Service Hook-up Fees. A deposit may also be required for utilities such as telephone, electrical, cable and gas.
- Condominium Fees. Be prepared to issue post-dated cheques to cover your monthly strata fees.
- Renovations, Repairs or Decorating.
Please Note | Actual costs may vary. The foregoing has been provided to assist you in planning your home purchase.