Fees: Buyers Completion Cost Guide
Harmonized Sales TaxThe Province increased the threshold for the BC HST new-housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization than was currently embedded as PST.
The Province also has transitional rules for new housing. The provincial portion of the HST does not apply to sales of new homes where ownership or possession is transferred before July 1, 2010. In addition, sales of new homes under written agreements of purchase and sale entered into on or before November 18, 2009, are generally not subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.
Property Transfer TaxThe amount of tax due depends on the fair market value of the property that is transferred:
- If the fair market value is $200,000 or less, the tax is 1% of the fair market value
- If the fair market value is greater than $200,000, the tax is 1% of the fair market value up to $200,000, plus 2% on the portion of the fair market value that is greater than $200,000
Prepaid property taxes or utility bills - You will have to reimburse the sellers for any prepaid property taxes or utilities.
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, GENWORTH, or a private company.
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Appraisal - Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $200.
Survey fee - 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. The fee ranges from $200.
Home Inspection fee - Most Realtors recommend that you get a home inspection by a certified home inspector. It will cost you from $300 for a smaller house. Large houses may cost more.
Legal fees - Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they will probably be at least $400 plus documents fee.
Disbursements to Land Titles Office - These fees are approximately $300. Your lawyer/notary will arrange this payment