Jamie Stewart

If you buy a newly constructed home, you must pay the 5% GST. However, if your house is less than $450,000 you may be eligible for a rebate. For more information, please visit the CRA Website for more information.

When a residence is purchased a Property Transfer Tax (PTT) is applied. The tax is calculated at 1% on the first $200,000 and 2% on the remainder. The First-Time Home Buyers' Program offers an exemption to the PTT if the fair market value of the residence is $425,000 or less. In all regions there is also a proportional exemption for first-time buyers of homes with a fair market value up to $25,000 above the thresholds. That means in the Greater Vancouver area, homes valued up to $350,000 ($325,000 threshold + $25,000 proportional exemption) will be charged a pro-rated PTT. For more information please visit: https://www2.gov.bc.ca/

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 or a private company. If you qualify for a 5% down payment, CMHC charges an insurance fee that equals 3.25% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2% and 1.75% respectively. The insurance premium usually gets added to your mortgage. You will also have to pay an application fee. CMHC's standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal.

Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers the cost otherwise you are responsible for covering the cost. The fee ranges from $150 to $350.

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 $150 to $350.

Most REALTORS® recommend that you get a home inspection by a certified home inspector. It will cost you from $150 to $350 for a smaller house. Large houses may cost more.

Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they should range from $600 - $1500. As an example:

• Purchase Of Property: Under $1 million with 1 mortgage
  • Fee Including Tax: $1000
    
    
• Purchase Of Property: $1 million - $2 million with 1 mortgage
  • Fee Including Tax: $1100
    
    
• Purchase Of Property: Under $1 million, no mortgage, cash
  • Fee Including Tax: $795
    
    
• Purchase Of Property: $1 million-$2 million, no mortgage, cash
  • Fee Including Tax: $895
    
    
• Purchase Of Property: New Home and new strata purchase
  • Fee Including Tax: +$120 to above
    
    
• Purchase Of Property: Over $2 million
  • Fee Including Tax: Enquire

These fees are approximately $300. Your lawyer/notary will arrange the payment.