Getting Started
Although there are lenders who will give you a mortgage with a down payment of 5-10 per cent of the purchase price, it benefits you to provide at least a 20 percent down payment. The government requires mortgage insurance for any down payment of less than 20 per cent. If you are considered a “foreign buyer,” you are required to provide a 30 per cent down payment.
If you aren’t a Canadian citizen or a permanent resident, you are considered a foreign buyer for the purposes of British Columbian real estate. Even if you’ve been living in Canada, you will need to be a citizen or permanent resident to avoid this tax.
Additional Costs
Other than the obvious down payment, there are some other costs every buyer needs to account for. Here are the main ones:
Appraisal – Most financial institutions require a property appraisal to estimate the true value of the property. This cost starts around $300 and increases depending on the size of the property.
Home Inspection – In the majority of situations, it’s recommended to carry out a home inspection. It protects you from any nasty surprises and will help to shine a spotlight on any obvious deficiencies. The cost of this will vary with the size of the property. For apartments, it can range anywhere from $300-$600. Townhouses and houses will start around $500 and go up depending on square footage.
Legal Fees/Notary Public Fees – The services of a lawyer or notary public will be required to complete the legalities of the transaction. Their fees usually start around $400, increasing depending on the complexities of the transaction.
Property Insurance – If you are purchasing within a strata property, basic insurance is usually included. This doesn’t include insurance on any upgrades or personal belongings. The cost of additional insurance on a strata property usually starts at $300. Insurance on a detached property usually starts at $500.
The cost and variety of taxes depend on your unique circumstances. Here’s a brief guide:
GST – If you are purchasing a brand new property, you are required to pay GST. This is an additional 5 per cent on the purchase price.
Property Transfer Tax – Unless you are a first time home buyer, you will have to pay PTT at the time of completion.
This rate represents 1 per cent on the first $200,0002 per cent on the portion of the fair market value greater than $200,000, up to and including $2,000,000.
3 per cent on anything above $2,000,000 but below $3,000,000.
Finally, anything above $3,000,000 is levied at 2 per cent.
Talk to the Professionals
Working with a realtor is advantageous for several reasons:
Negotiating Power – Extensive market knowledge paired with industry relationships give us an edge in negotiation.
Market Knowledge – Constant market updates and research over our careers allow us to pinpoint appropriate market value for offers.
Experience – We do this all day every day and are committed to this business.
Facilitate Due-Diligence – Avoiding complications we can communicate with the mortgage brokers, listing agents, and inspectors to try and foresee any complications and deal with them prior to closing.
Protection – We look out for your best interests and uphold confidentiality.
Connections – We have curated an extensive list of trusted industry professionals to form our Home Buyer Concierge Team.
The MLS, or Multi-Listing Service, is a suite of services that realtors use to accumulate and disseminate information on available properties. It lists homes for sale, new homes, re-sale homes, acreage, lots and commercial property.