Useful info

Upfront 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.

Qualicum Beach Market Update

Foreclosure: Speculation

"Real estate prices can not get any higher, the prices are going to collapse soon." Sound familiar? These stories have prospered as much as real estate prices. On topic, will foreclosure activity increase to where bargains can be had? Well, that also isn't quite true or feasible either. Real estate is a market commodity where prices fluctuate depending on demand, as Sellers and Buyers set the values.

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The Latest News

Here is the latest news from the Parksville Qualicum Beach real estate market.

MARKET UPDATE: September 30 /2021

Here on Vancouver Island, November usually heralds in winter with our harshest weather. If we will get snow and ice, the worst is usually in November, so the impact on our daily lives is quite significant. This year will be especially notable as we have enjoyed the longest driest summer weather in our memories. Vegetation, streams and water reserves have suffered the lack of our normal precipitation. In the home sales market, we have also seen a drought in listings, as it seems many people have locked down in their homes while health authorities struggle with the Covid pandemic. The local Central Vancouver Island sales volumes have been good, but not keeping up with demand. People having to make moves in the real estate market, are experiencing major price increases, even a 33% annual jump in Qualicum Beach/Parksville benchmark price. Local residents and even the real estate agents are struggling to cope with the phenomenal price increases. As we have gazed across Georgia Strait at the inflated Greater Vancouver market, with homes selling in the millions, and then torn down, we are adjusting to a huge increase in sales of homes over $1 million. In Quarter 3 of 2021, 47 of the total 197 single family homes sold, were priced above $1 Million dollars. Read more...

MARKET UPDATE: August 31 /2021

The summer of 2021 has been extremely hot and dry, sparking numerous damaging forest fires in British Columbia. This is having a significant effect on the Vancouver Island real estate market. People in the forest fire areas are not only suffering with the heat and dry, but also air pollution from the burning forests have negatively affected their health, and consequently, their ability to make changes in their real estate needs. There are people on Vancouver Island planning to move to the desirable Okanogan and other areas to be closer to family or employment. No one wants to move once the fires and smoke put people at risk. Even more specifically, insurance companies, and therefore mortgage business refuses to do business until the fires are brought under control and eliminated. People living near current forest fires are not able to sell their homes for all of the above reasons, to move to Vancouver Island, though there are many people wishing to make the move. CLICK on '-> Read more' to view VIREB's market update and statistics for the Month of August /2021. Read more...

MARKET UPDATE: July 31 /2021

The old news is still news; home inventory is still at historical lows. This is not to say homes are not selling, but quite the opposite, home sales are so brisk, the market is lacking inventory. Currently NANCY SMITH has three listings, two just added, which have garnered a lot of attention, even from Victoria and Vancouver REALTORS who are making the trek to Qualicum Beach to assist their clients. Often REALTORs will refer clients into other communities, especially at these distances, but lack of inventory is motivating REALTORs to take that extra step. To read more information and statistics from our VIBREB Board for the month of July /2021, CLICK on 'Read more'. Read more...

MARKET UPDATE: JUNE 30 /2021

Real estate market conditions still favor Sellers as inventory continues to challenge the waiting list of Buyers. Homes requiring maintenance and renovation updating continue to sell easily as no-condition offers still dominate the market. Home buyers are assuming risky purchases as they buy homes without the usual building inspections, septic inspections and subject-to-financing clause. Often million dollar purchases are based on one 15 minute viewing, and even remote purchasing without a viewing. Homes that would normally languish on the market, SELL. ***** Click on "Read more' to get VIREB statistics and market opinion. ***** Read more...

MARKET UPDATE: MAY 31 /2021

Qualicum Beach and the greater Oceanside area is hurting for listings. Waterfront properties do not last in this market in the $ multi-million price range, as competition is fierce. With new construction costs soaring due to many factors; building material shortages, transportation issues and a lack of available skilled tradespeople, and new construction fees and taxes, pre-owned homes are in greater demand. The hot home market extends through the mobile home on pad rent, to small lot and home properties, to inconvenient locations, everything is selling. For further insight from VIREB and accumulated statistics for Vancouver Island, excluding Greater Victoria, click on "Read more". Read more...

MARKET UPDATE: APRIL 30 /2021

REALTORS and Buyers are feeling weary in this complicated market. Sellers are overjoyed at the current demand and price levels, but seem to sober up when it is their turn to become Buyers. These factors are keeping potential Sellers from listing their homes, creating an even tighter real estate market. This phenomenon is not confined to our local market, or even across Canada, but also in many developing countries. No one seems to be able to pin down the list of factors, but everyone seems to point fingers at the current low interest rates. Normally at this time of year, the local listings can double in a regular market, but properly qualified and diligent-priced properties are selling within a few days, keeping available inventory tight. CLICK on "Read more" for further April Market stats and opinion from VIREB. Read more...

MARKET UPDATE: MARCH 31 /2021

Sales are steady as a lack of inventory is keeping Buyers at bay, on Vancouver Island. Click on "Read more" for current basic Market DATA. Read more...

MARKET UPDATE: February 28, 2021

No news is good news? Lack of inventory is resulting in frantic 'bidding' for available properties as purchasers are increasingly frustrated submitting offers, only to be disappointed. Not all properties will sell to the 'highest bidder', as some sellers have specific requests, like rent-back, specific closing dates, and other special considerations. Work with your REALTOR to tailor your offer to be successful. Remember, it is also in the REALTOR's best interest to have a happy client. CLICK on "Read more" for a quick market overview. For a more DETAILED Market snapshot, view the next article below this one. Read more...