What are they? These are costs on top of your down payment that you should understand and budget for. The name of the game is to be as prepared as possible for all potential and likely scenarios. This includes budgeting for the appropriate expenses and also knowing just how many people are involved in a single real estate transaction.
Let’s take a closer look at each of them:
- Property transfer tax. This is the tax that almost everyone has to pay at closing and it cannot be included in your mortgage. It amounts to 1% of the first $200K and 2% of the balance. Here is a quick calculator to help you budget. Here is a list of those that might be exempt from paying this tax.
- Legal fees: These costs will vary, but generally run from $1300 – $2000 in BC (inclusive of taxes and disbursements). Your lawyer or notary will register you as the owner of the property, handle the down-payment, register the mortgage, and provide you with advice.
- Building Inspection: An inspector is generally in the range of $450 – $650 depending on the property type. The building inspection is not often something that lenders require. It is for your own protection and peace of mind. It allows you to be sure that you are buying a quality home and are aware, up front, of any potential issues. In a condo purchase the inspector should also be reviewing the Depreciation Report and strata documents to understand the history of the building and any potential special levies in the future.
- Other inspections: These may include: oil tank survey, septic inspection, well-water testing, perimeter drains, air quality inspections (think Asbestos), and more. Talk to your realtor about what is needed for the specific property type that you are looking at.
- Moving Costs: Maybe it’s a case of beer for your friends, booking a moving van, or maybe it’s hiring cross-country movers! Moving can be expensive and those costs add up quickly – don’t forget to budget for it!
If you’re new to the market, or to the city and would like a referral for any of the above professional services, just let us know and we’re always happy to connect you with awesome people that we know and trust in the industry. Above all, remember that you’re not going into this process alone or blindly. We’re here to work closely with you each step of the way!
Learn more by contacting our mortgage team today!