Home Buying Completion Costs Guide
HST:
The HST applies to new homes. It does not
apply to resale homes.The provincial and federal governments
will combine the 7 per cent Provincial sales tax (PST) and
the 5 per cent federal Goods and Service Tax (GST) into a
12 per cent Harmonized Sales Tax (HST) on July 1, 2010. For
further details on HST: http://www.bcrea.bc.ca/hst/faq.htm
Property Transfer Tax:
This tax is 1% on the first $200,000 of the
sale price and 2% on the remainder. First-time buyers may
be exempt from paying this tax. For further details on First-time
home buyers grant: http://www.sbr.gov.bc.ca/documents_library/bulletins/ptt_004.pdf
Prepaid property taxes or utility bills:
You will have to reimburse the sellers for any prepaid property
taxes or utilities.
Mortgage Options:
What is the difference between conventional
and high-ratio mortgages? For further details on understanding
your mortgage options: http://www.cmhc.ca/en/corp/nero/retousar/2010-04-20.cfm?renderforprint=1
Mortgage loan insurance and application fee:
If you get a high-ratio mortgage (a mortgage where you pay
less than a 25% 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 3.75% of the mortgage. If you put 10% or 15% down,
your insurance fees will decrease to 2.5% and 2% 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.
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 to $400.
Home Inspection fee:
Most Realtors recommend that you get a home
inspection by a certified home inspector. It will cost you
from $350 to $700 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 $400 to $700.
|
