Additional Costs For Buyers
Home buyers should be aware that when they are purchasing a home there are additional costs on top of the purchase price. Here are a few examples:
1) Property Purchase Tax is a land registration tax payable when an application is made at any Land Title Office in British Columbia to register changes to a certificate of title. Property Transfer Tax is payable on the fair market value of the property being transferred.
The tax rate is 1% on the first $200,000 of the fair market value of the property, plus 2% on the fair market value between $200,000-$2,000,000. For example, if the fair market value of the property is $150,000 the tax is 1% of $150,000 or $1,500. If the property's fair market value is $250,000 the tax is 1% of $200,000 ($2,000) plus 2% of the remaining $50,000 ($1,000) for a total tax of $3,000. It should be noted that the property tax increases to 3% above 2,000,000 and then increases again to 5% for homes over $3,000,000.
2) Home Inspection fees can range between $350 - $1000 depending on the size of the home
3) Interest Adjustment: The interest you pay for receiving your mortgage funds early
4) Property Tax Adjustment: Property taxes for the calendar year are paid on July 1st. If a property is purchased before July 1st, the seller will owe the buyer a credit at completion. If a property is purchased after July 1st, the buyer will credit the seller at completion for the days he owns the property up to and including December 31st.
5) Legal Fees: They can range approximately from $700 - $1200.
6) Property Title Insurance: Approximately $200 or more. This insurance provides security and peace of mind in matters regarding title. It may eliminate the need for land/site survey.
*It should be noted that these figures are only examples and do not include taxes (GST). Individual cases will vary.