PRE-PURCHASE COSTS

Deposit. The biggest pre-purchase cost that you should allow for is the deposit. The deposit is typically due 3 business days after your offer to purchase has been accepted. While the amount can vary, 5% of the purchase price is a good figure to work with. The deposit can make up part if not all of your down-payment.

Home Inspection. Home inspection costs will vary on the size of the home but will typically range from $175 - $700. Having a home inspection as a subject clause is money well spent and can often save you money in the long run as it will pinpoint maintenance areas of the home that need to be addressed and figured into the final sale price.

Appraisal. While not all lenders will require an appraisal it is prudent to allow for $250 for such a service.

PURCHASE COSTS

Down-payment. Conventional mortgages can require up to 20% down-payment. If a high-ratio third party mortgage is available this may be reduced to as little as 5%

Property Transfer Tax. In BC buyers are responsible for the Property Transfer Tax or PPT. The current amount for this is 1% on the first $200,000.00 and 2% on the remainder. Under the First Time Home Buyers Program, eligible purchasers can claim an exemption from the PPT.

Legal/Notary fees. To transfer and convey the Title of the property you will require the services of a Lawyer or Notary. These fees can range from $750 - $1500.

House Insurance. Most mortgage lenders will require you to have a home insurance policy in place by your closing date. Insurance policies vary in cost.

ADDITIONAL COSTS

GST/HST. Applicable to new home purchases and converting commercial nightly rental property to used residential.

Moving costs. Will vary depending on the distance and amount to be moved. A professional moving company can make you move much easier for around $700 -$1000.

Adjustments for prepaid property tax and Strata fees. If you are moving to a strata property or bare land strata there may be monthly or yearly contributions to the strata management. Typically this goes to common area maintenance, contingency fund, snow clearing & landscaping.

Repairs and Improvements. These should be taking into consideration when negotiating a final sale price but are ongoing expenses that should be considered.

Utility and Service hook up. Contact the respective utility company to determine cost if applicable.