Thinking of Buying?

Buyers are required to hire a lawyer or Notary Public to draft the closing documents which ensures the title of the home is properly transferred. Fees usually vary from $900 to $2,000 plus GST and PST.

• 1% on the first $200,000
• 2% on the portion greater than $200,000 to $2,000,000
• 3% on the portion greater than $2,000,000
• Additional 2% on residential property over $3,000,000

The First Time Home Buyers' Program in British Columbia reduces or eliminates the Property Transfer Tax (PTT) you pay. For existing homes up to $835,000, PTT is eliminated on the first $500,000, saving up to $8,000. For newly built homes, the maximum exemption threshold increases to $1,150,000.

Qualifying buyers of newly constructed homes may be exempt if the purchase price of their home is priced up to $750,000. There is a partial exemption for homes priced between $750,000 and $800,000. Above $800,000, there is no rebate.

Title fraud is more common than you think, especially for investment/rental properties that the owner does not occupy on a regular basis.

In British Columbia, the 5% federal GST applies to the purchase of newly constructed homes, presales, and substantially renovated properties. Resale (previously owned) residential homes are exempt from GST. If you are a first-time home buyer purchasing a new build, you may qualify for the First-Time Home Buyers GST Rebate, which eliminates or reduces the tax for homes valued up to $1,500,000.

A home inspection is a report on the condition of the home and includes structural and moisture problems, as well as electrical, plumbing, roofing and insulation. Fees can vary from typically $500 to $900 plus GST depending on the size of the home and the complexity of the inspection. Some inspectors also charge an additional fee for an older home or a home with a secondary suite, a crawlspace, or a laneway home.

Financial institutions require an appraisal of a property before the mortgage is finalized in order to ensure the collateral protects them adequately. This fee can be in a range between $300 to $500 depending on the appraiser chosen by the bank.

The federal government requires high-ratio mortgages with less than 20% down payment to be insured against default. To get mortgage loan insurance, you’ll need a minimum down payment. The amount depends on the home’s purchase price:

• If the home costs $500,000 or less, you’ll need a minimum down payment of 5%.
• If the home costs more than $500,000, you’ll need a minimum of 5% down on the first $500,000 and 10% on the remainder.
• If the home costs $1,500,000 or more, mortgage loan insurance is not available, and you will need at least a 20% down payment.

First Time Home Buyers

Buyers can claim up to $10,000 on their personal income tax return for the purchase.

Home Owner Grant (BC)

Under the B.C. Home Owner Grant, a home owner may be eligible to reduce the amount of annual property taxes they pay on their principal residence.

Home Buyers Plan (HBP) From Your RRSP

Homebuyers may withdraw up to $60,000 from their RRSP accounts without the withholding tax nor the income tax assessed, as long as it is paid back (re-contributed) within a 15 year period. You must fill out form T1036 after you have an accepted offer in order to qualify.