It is important when you decide to buy a home that you have a full understanding of the costs associated with your purchase. There are a lot of additional costs that you must be prepared for when buying a home, and it is important that you are fully aware of them. You will need to have some additional money set aside to cover these costs or make arrangements with your bank to cover these costs and absorb them into your mortgage. Your largest initial expense will be your deposit, which could be up to 5% of the purchase price.
You should also be prepared to pay:
- Legal fees and disbursements
- When buying a new or never lived in home, HST may be applicable
- BC property or land transfer tax : 1% on the 1st $200 000 and 2% on the balance
- Property taxes, pro-rated to completion date for calendar year.
- Utility payments
- If in a strata type of ownership, strata fees
- Home inspection fees
- Mortgage broker’s fees (if applicable)
- Mortgage loan insurance premium, if applicable,plus application fee
- Title insurance
- Moving expenses
- Renovations, repairs, paint, carpeting, and window coverings
- Property/ Strata Insurance