RESOURCES

Costs

In purchasing a new home, it's good to know what you will be paying on completion. Your mortgage isn't the only expense you have to take into consideration when buying a home. You'll pay some costs at the beginning of the buying process and others, known as closing costs, when you actually have ownership title transferred to you. In some cases, these costs can be 1.5% - 7% of the total cost of your home.

* Appraisal fee – depending on the financial institution you are dealing with, the cost of the appraisal may or may not be included with your mortgage application, typical appraisal cost is from $250 and up should there be a charge.
 
* Home inspection fees – a good estimate for this cost would be $350 and up for a condominium and $600 & up for a single detached home.
 
* Property Transfer Tax – in British Columbia the Property Transfer Tax is 1% on the 1st $200,000 and 2% on the Balance (there is an exemption for First Time Homebuyers if certain conditions are met).
 
* GST (new construction) – 7% GST is payable on newly constructed properties with a home owners grant available if all conditions are met.

 
* Legal Fees – the cost for a notary or lawyer will be approximately $800 and up, depending on the type of services required.
 
* CMHC Insurance – if your down payment is less than 20% the cost for high-ratio mortgage insurance, ranges from .50% - 2.90%

* Property Tax – your lawyer/notary will inform you of the pro-rated property taxes due at time of completion for your property.
 
* Home Insurance – the cost of home insurance will vary depending on the type of coverage and amount of contents to be insured.
 
* Mortgage life insurance – a separate optional coverage offered by the lending institution, costs vary depending on each individual's criteria.
 
* General expenses (moving, upgrades, decorating, storage, etc.) – budget at least $1000 for miscellaneous expenses that will occur.