Buyer

Choosing and Working with a Real Estate Agent

Once your budget is determined, it is time to find an Agent. As buying a home is probably one of the largest investments you will ever make, it is very important that you choose an agent knowledgeable in this field, and one that you feel comfortable working with. Working with a competent real estate agent will save you time, money and frustration. I believe that I can help you get the best property at the lowest overall cost, and with minimum inconvenience. I would be very pleased if you would consider me as your Buyer’s Agent!

The Fact - Costs of Buying A Home

Down Payment Requirement

All borrowers must meet the standards for a five-year, fixed-rate mortgage, even if they choose a variable mortgage with a lower rate or a shorter term.
The maximum Canadians can withdraw when refinancing their mortgages has droped.
Buyers must make now a minimum 20 per cent down payment — up from five per cent — to qualify for Canada Mortgage and Housing Corp. insurance for non-owner-occupied properties purchased as an investment.
20% - Canadian investor
50% - foreign purchasers/investor

Where down payments can come from…

RRSP
Savings
Gift
Equities, etc.
Credit Cards
Line of Credit

Appraisal fee

Approximately $275.00 + GST (if required by lender)

Survey Certificate

Approximately $350 (if required by lender)

Home Inspection fee

Approximately $550 +

Mortgage Default Insurance

0.5%-3.75% of loan amount (depending on how much cash you can put toward the loan) This insurance is mandatory, if your down payment is less than 25% of the purchase price and can be rolled into the mortgage

Title Insurance

Approximately $9 50+ disbursement + GST (full service including legal fees)

Legal Fees

$950 (approx) + plus GST (if you choose to retain a lawyer, this has no connection to Title Insurance. You will choose to deal with a lawyer directly and exclusively OR use the services of the title insurance company).

Property Transfer Tax

The tax payable under this Act is

(a) 1% of the first $200 000 of the fair market value of the taxable transaction, and

(b) 2% of the remaining fair market value of the taxable transaction.

Full exemption to this tax - first time home buyers, with 25% or less down payment and buying a property with a purchase price under $425,000.

http://www.sbr.gov.bc.ca/business/Property_Taxes/Property_Transfer_Tax/tax_rates.htm

HST - Starting July 1, 2010

Applicable on new construction only (12% depending on purchase price).

Property Tax Adjustment

Prorated from date of purchase.

Condominium Maintenance Fee

Prorated from date of purchase.

Other costs

As a rule of thumb you should have, in addition to your down payment, cash on hand to cover costs such as hookups for phone, power, cable, gas, oil, water, etc. and moving expenses.